Over the last decade, the leasing market in Asia has evolved and businesses have become more sophisticated as they recognize the benefits of using operating leases, according to Adrian Pang, managing director, CIT Vendor Finance in the latest in a series of executive video Q&As featured in the CIT Executive Insights series.

“I always tell people, if you walk into any office, the photocopiers, the phone systems, they can be leased. In a manufacturing environment, in the factories on your production line, your important capital-intensive equipment can be leased,” Pang said.

He added, “I always tell people, if you walk into any office, the photocopiers, the phone systems, they can be leased. In a manufacturing environment, in the factories on your production line, your important capital-intensive equipment can be leased.”

One of the key benefits for customers is that they can acquire the equipment and increase their productivity, but pay for it over time. Pang explained, “This is especially important to small- and medium-sized enterprises. They can increase their efficiencies, while not incurring a big capital investment up front.”

There are several opportunities, in China in particular, in which the equipment leasing market can grow. Pang sites two initiatives currently underway in China: “In China, the government is strongly pushing an initiative to digitize all medical and patient records at hospitals . . . Another initiative is called Safe City. The government will be installing surveillance cameras in all major cities, which are then connected to a control center. So in the event of a disaster, or even small matters like traffic accidents, the control center can react properly.”

To view the CIT video click here.