Due to the weak financial strength, poor financing channels, low profitability and high price of rehabilitation and nursing equipment, the overall quality of pension services in private oldage institutions is difficult to be significantly improved. However, financial leasing, as a financial tool, can effectively alleviate the financing dilemma. Based on the basic principle of financial leasing, the paper points out that there is coupling between financial leasing and facilities upgrading of private oldage institutions in terms of capital, investment return period, time demand and management mode. From the perspective of enterprise life cycle, this paper analyses three modes of facility upgrading in private oldage institutions. They are the direct financing leasing mode which combines the leasing mode of manufacturer, the aftersale leaseback mode and the fractional leasing mode. Finally, combined with the practical cases of financial leasing of oldage institutions, this paper puts forward policy suggestions for the coordination of government, financial leasing enterprises and private oldage institutions.