Abstract
The uses and management of capital is extremely important to the operation of any businesses. However, not all businesses have available capital, so the use of loans in many different forms is always an effective solution in managing corporate finance. Accompanying with businesses, many financial leasing companies have implemented products and programs to lend money to businesses with low interest rates. So, choosing the best financial leasing company is a primary concern of businesses. To increase competitiveness, financial leasing companies often offer preferential conditions to attract businesses. Choosing the best financial leasing service to leasing is important and necessary to those businesses. Thus, the selection of a financial leasing company by small and medium enterprises benefits from the application of Multicriteria Decision-Making (MCDM) methods which allows the decision maker to consider various qualitative and quantitative criteria. In this article, the author applied Fuzzy Analytical Network Process (FANP) to calculate the related criteria weights of the financial leasing company selection problem of businesses. Then, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is applied to rank the potential decision-making units. This research establishes one complete and efficient model for financial leasing company selection using FANP and TOPSIS methods. The proposed model is then applied into a real-world case study to demonstrate its feasibility.
Highlights
According to the Vietnam Economic Census, there are more than 500,000 enterprises
The same source identifies an increase of 51.6% compared with previous years, of which small and medium-sized enterprises (SMEs) account for more than 98% of businesses in Vietnam (Vo et al, 2011)
Besides formal capital mobilization channels from banks, financial leasing companies have contributed a lot to supporting businesses in Vietnam to solve capital difficulties
Summary
The same source identifies an increase of 51.6% compared with previous years, of which small and medium-sized enterprises (SMEs) account for more than 98% of businesses in Vietnam (Vo et al, 2011). Besides formal capital mobilization channels from banks, financial leasing companies have contributed a lot to supporting businesses in Vietnam to solve capital difficulties. The cost of investing in these assets are high Such investments in equipment may be beyond the financial capacity of SMEs. In addition, overinvestment in one area may limit cash flow causing the business to be less flexible and affecting business activities in return. Overinvestment in one area may limit cash flow causing the business to be less flexible and affecting business activities in return This is the concern of many SMEs operating in the country
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