Good Prospect of Chinese Construction Machinery ... - Real Estate

In recent years, companies have gradually improved their knowledge of financial leasing, the functions of the leasing market was perfect, the Construction Industry of China engaged in leasing machinery has entered a new stage of rapid development.Especially in the context of the financial crisis, the Chinese government adopted a policy of extending a request from the internal market, providing opportunities for rapid development of the rental industry for construction machinery.?On the other hand, compared to leasing in the mature markets of developed countries, the machinery industry of China for the construction of the lease is still in the early stage of development.?Therefore, the rate of market penetration is very low, only about 8%.According to the static of China Research and Intelligence, in 2008, the market size of the leasing market of construction machinery in China is only about $ 3 billion.?Statistics show that Caterpillar is the leading producer of construction machinery in the world whose sales amount is over 60% of worldwide sales and more than 80% of its sales in developed areas is covered in the lease finance.

The penetration rate of leasing Chinese domestic construction machinery is estimated to increase year after year.?It is estimated that in 2010 will be 12% and in 2015, reaching 25%.?The market scale is expected to reach $ 20 billion.?Therefore, the space of Chinese construction machinery leasing is a great development.
For companies in construction machinery with large scales and cash flow sufficient to establish their own leasing company means a lot.?Especially in the context of the financial crisis, bank accounts, mortgages can not meet the requirements of the very few sales of construction machinery companies.?As a new sales model, to some extent, the lease to offset this request.?Just because of this, the model of sale of the lease has attracted the attention of manufacturers and becomes the new option for many companies in the construction of large machines and abroad who wishes to defend the pace of market impact?policies.

When the economy is booming, the policy of bank credit is loose, and leasing can play its full role in corporate finance to promote economic development to flourish.?When the economy is depressed, leasing not only plays a role as a cardiotonic, but also plays an advocacy role.?Pushing forward the investment and consumption, stimulate economic development and the blood shed in economic development.?Leasing is an effective way to simulate investment and to overcome the decline in investment.?To some extent, can avoid being influenced by changes in national monetary policies.?Plays a positive role in the stable development of enterprises and the sustained and stable growth of the economy of the state.?On the other hand, renting a function of accelerated depreciation.After a lease expires, the lease of the equipment will be completely renovated in the second hand market, aimed at encouraging the development of secondary processing and supports the development of industry cyclicality of construction machinery.

For its objects, the location has a unique advantage to promote the development of small and medium enterprises.?In China, the level of commercial bank lending in recent years is very high, not only credit risk avoider, but also blocks the development requirements of small and medium customers.?The combination of location provides companies with medium and small loans of medium and long term.?In the process of renting, ownership of the computer has an owner, but the right to use and usufruct, belonging to a tenant.?The current accounting system of China stipulates that the assets leased can be incorporated into the fixed assets of a business tenant to remove the impairment.?For a number of construction companies of small and medium, this feature may solve the problem can be described as businesses with sufficient quality for the lack of adequate equipment (fixed assets).?And the winning bids of the projects will not be affected.?In addition, a variety of companies published by the leasing companies can greatly support the small and medium enterprises to enter the competition in the market.?For example, the sale and leasing can help construction companies offers to purchase the necessary equipment in the bidding process.?What is a hardware company to sell its scrap value (which does not participate in the tender for construction) for leasing companies.?He also raised money to buy the necessary equipment supply and rental of equipment has been sold to financial companies.?The activity was relatively mature and abroad.?Physical capital companies in exchange for money capital through the sale and leaseback.?The company has no impact on firms to continue using the property and maintain the flow of capital.

For companies in construction machinery, leasing has four functions such as financing, promotion, investment and asset management.?Among them, funding and promotion are the most important.?Especially in the current phase of national crisis macro-control and credit on the one hand, leasing companies can provide financial services to parents through the adoption of rent rather than sell.?Not only avoids the excessive use of bank credit, but also avoids completely smooth intermediate links caused by too much action, helping to speed the flow of capital from the company.?On the other hand, leasing can expand the market for products of matrices and to strengthen competitiveness in the market.?Meanwhile, as a parent of a leasing company, a manufacturing company may occupy part of the profits of bank interest.

The outlook for the global industry from the rental of construction machinery in China is good.?But according to statistics from the China Research and Intelligence in July 2009, the operational status of each company in the industry from the rental of construction machinery in China is not the same.?Some companies such as Caterpillar, the giant of the international construction machinery, taking many steps in the industry, preferably in the rental of China construction machinery in 2009: in 2009, its rental business 5?% of required deposit, after entering in 2009, the policy of free margins is performed, the payment of a fee is paid, one year insurance of construction machinery is available to clients in the leasing sector.?Therefore, your business grows prosperity.

However, in some companies, the terms of the leasing business are complex and the total rental costs are higher than the mortgage bank, after all.?Thus, its leasing activities in the Chinese industry from the rental of construction machinery has been reduced or even canceled.?Mortgage market investment bank replaces the space left by the leasing company.

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Source: http://www.logobuster.com/leasing/good-prospect-of-chinese-construction-machinery-financial-leasing-industry/

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