Discuss the factors restricting the development of China Construction machinery financing lease-Jiangyin Shuangma Heavy Industry Equipment Co.,ltd

Discuss the factors restricting the development of China Construction machinery financing lease

China's construction machinery leasing industry started in the last century 80's, after more than 20 years of development has made considerable progress, but also in the early stages of development from the overall point of view. In our country, the construction machinery leasing industry still stays in the small, scattered, independent operation of the traditional original state, compared with foreign leasing industry, there is still a big gap. With the construction machinery industry market decline in recent years, China's financial leasing industry has exposed the problem of growing concern.

Financial leasing companies do not scale

At present, China's construction machinery leasing companies have more than 11500. But the assets of 50 million yuan or more engaged in construction machinery leasing Specialized Leasing Companies less than 100, and the rest are small and medium enterprises. In Europe and the United States and other developed countries, with a large scale construction machinery leasing companies more than a thousand.

All along, the finance leasing business too restrictive, domestic to obtain legal business qualification of financial leasing leasing of construction machinery enterprise is not much, carry out leasing operations also faces rental costs decline, such as lack of credit problems. It is understood, China's construction machinery leasing industry behind with the rent rate is still in the higher level, the part of construction enterprises owed enterprise leasing leasing a phenomenon more serious, leasing companies in arrears generally account for about 30% to 40% of total revenue, part of the rental agency due debt arrears amount accounted for the proportion of the total even as high as 60% to 70%. This seriously affects the healthy development of China's construction machinery leasing industry.

Lack of laws and regulations lack of talent pool

At present, there is no special law on financing lease in our country, only some relevant provisions are scattered in the provisions of any other law, such as the contract law of the people's Republic of China, the Supreme People's Court on Several Issues concerning the trial of financing lease contract dispute case of regulations, and so on. Also financing leasing products in the registration department of the property right is not clear, the lack of public information platform. It is difficult to resist bona fide third party caused the dispute and is unable to realize the lessor and lease information symmetry, lead to the high cost and low efficiency of risk management issues. In this regard, insiders said that solve rental crisis, need as soon as possible to improve the current legal environment and the supporting laws to support and promote the healthy development of the leasing industry, at the same time, strengthen the lessor as the protection of creditors and the owner.

In addition, the financing lease to really get development, but also have to cultivate their own professional talent, rather than simply rely on digging people to solve. The early development of talent reserves plan, nip in the bud, can help the company in the way of business expansion to go more calmly.

Industry "great leap forward" financial risk highlights

Finance lease sales model in the construction machinery industry enterprises are very common, which is the manufacturer of the Department of finance leasing, banking system financing lease in all kinds of business accounted for a relatively large. To bank and distributors in the leasing agreement, for example, at the time of sale is backed by the residual value of the machine, the general will be clear: the time of occurrence of the risk of loans, the banks have to dispose of the collateral, the dealer is to bear the responsibility of repurchase. Under the current macroeconomic regulation and control environment, demand is sluggish, leading to the back end of the funding model encountered a bottleneck. Because the loan is provided by the group guarantee, so the bank take its cut".

"Construction machinery financing lease is similar to the one hand house mortgage loan, and the downstream customers will pay the equipment regularly." Northeast Securities engineering machinery industry analyst Li Kun said that if mortgage overdue, authorized dealers will generally to about 2-3 month moratorium, after period of delay has the right to recover machine, also is the so-called "repo".

Industrial and Commercial Bank of China Jiangsu Branch, a vice president introduced, similar to the shares of the bank risk that, in fact, the beginning of the year in the industrial and Commercial Bank of China communicated over the, specific operation is to reduce loan financing scale, risk control. Let the industrial and Commercial Bank of China Vice President worried that the industry is a large area of default". He said that the overdue loans will trigger the dealer or manufacturer repurchase provisions, but only a small area to solve the problem, "if the industry area of default, repurchase also to no avail. After all, manufacturers also face cash flow constraints."

Although the financing lease can bring many benefits to the construction machinery manufacturers, but there are always two sides of the development of all things, financial leasing also contrary to the law of nature. With financing lease this transaction mode is gradually familiar with the industry, how in the market downturn to further reduce the financial risk in financial leasing has become an important research topic for the domestic construction machinery manufacturing enterprises.

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