Construction Machinery Rental Crisis Attacks

The construction machinery industry's financial leasing market, as an internationally accepted method of promoting market sales, not only protects the interests of shareholders, but also acts as a way to support the profitability of customers, and was once favored by the construction machinery industry market, but it is Established on the basis of a reliable market terminal, once there is no end market demand, there is no work, and this will cause problems. The gradual decline of construction machinery leasing industry has inevitably caused some industry “investors” to worry about, coupled with the “downturn” of the entire construction machinery industry market development, so that the doubts about the industry recovery once again warming.

Leasing Crisis Leads to Vicious Competition or Inducement

Since 2010, the state's policies on the regulation of the real estate market have been continuously introduced, and the introduction of the purchase restriction order has also brought a heavy blow. Real estate development has swiftly ended. At the same time, the international financial crisis has continued to ferment, and the capital chain of domestic companies has been considered. The phenomenon of arrears of project funds after the completion of new projects has occurred from time to time. The entire construction machinery leasing market began to enter the winter quickly from 2011.

Even if it enters the downturn of the industry, the enthusiasm of construction machinery manufacturers for the development of financial leasing remains unabated. In 2012 alone, Rongsheng Machinery, Foton Motor, Zoomlion and other companies had new initiatives in the financial leasing industry. Among them, Zoomlion’s proportion of financial leasing to operating revenue increased from about 5% five years ago to more than 50% today. While the industry risks are emerging, the risk of the rapidly growing financial leasing business is also alarming. Due to market competition, the conditions of some financial leasing companies have been continuously relaxed, such as the relaxation of the qualification assessment of customers, so that some customers who have no experience in construction machinery operations and have poor repayment ability have entered, thereby increasing the receivables of construction machinery financing leasing companies. The risk of rent repatriation.

Policy orientation needs to give talent reserve is still the key

At present, there is no specific law on financial leasing in China, and only some related regulations are scattered in other legal provisions, such as the "People's Republic of China Contract Law" and "Stipulations of the Supreme People's Court on Issues Concerning the Trial of Financial Lease Contract Disputes". In addition, the property rights registration department of financial leasing products is not clear enough, and lacks a platform for information disclosure. It is difficult to resist disputes caused by well-intentioned third parties, nor can it achieve information symmetry between the lessor and the lessee, resulting in high costs and inefficiencies in risk management and control issues. . In this regard, industry sources said that to solve the rental crisis, it is necessary to improve the current legal environment as soon as possible, so that supporting laws can support and promote the healthy development of the leasing industry, while strengthening the lessor as a creditor and the owner of the protection.

In addition, if finance leases are to be truly developed, they must also cultivate their own professional talents, instead of relying solely on digging people to solve them. The early formulation of talent reserve plans to prevent problems before they occur can help the company to be more relaxed in its business expansion.