A clear understanding of the "five short boards" of the construction machinery leasing industry

The signs of maturity of the leasing industry are: a sound credit system, relevant laws, orderly market competition, formation of leading enterprises, advanced management awareness, rich product categories, clear lease contracts, and sufficient professionals. In the rapid development of China's construction machinery leasing industry, what do we have? What do we need?

In recent years, with the increase in crude oil prices and the increase in labor costs, equipment rental costs have skyrocketed, coupled with the impact of the “price war” in the industry, many leasing companies’ business volumes have declined to varying degrees, and profitability has decreased significantly compared with the same period of previous years. Construction machinery leasing suddenly encountered the "cold stream", and some practitioners began to re-examine the development environment of the domestic construction machinery leasing industry. Some people in the industry believe that China's construction machinery leasing industry can't always have a blind and optimistic attitude, and can't use the mature industry standards of developed countries such as Europe and the United States as a theory to be applied to the current Chinese leasing industry. After all, the domestic market environment and Europe and the United States The developed countries have obvious differences. Market practice tells us that behind the prosperity of the leasing industry, there are at least five issues worthy of industry consideration.

First, the imperfection of the credit system and related laws and regulations is a major obstacle to the healthy development of the leasing industry. Although this is a cliché problem, it is indeed the “basic national condition” of the current domestic leasing industry and it cannot be resolved in the short term. Therefore, to start construction machinery leasing business must first have a clear understanding of this, all the leasing business in this environment to consider, establish risk prevention and prevention mechanism, make the necessary psychological preparation.

"Easy rental, difficulty in rent collection" is the most true portrayal of domestic leasing business. In the current Chinese legal system, the economic disputes arising from the recovery of lease payments are only handled as general civil cases, which condones the phenomenon of rent arrears to some extent. Moreover, at present, the domestic credit system is very imperfect, and the price paid by companies for violating their integrity is extremely low. Some construction companies or individuals intentionally default on rents, and even worse, misappropriate the leased company’s assets through equipment transfer. Once this happens, the leasing companies will be dragged into protracted legal disputes, which will consume a lot of manpower and material resources. Even if they win the case in the end, they will face difficulties in enforcement of legal judgments. The difficulty in recovering losses can be imagined.

Different from domestic ones, developed countries have relatively complete leasing regulations. In the United States, if the lessee defaults on the rent, the lessor can legally pursue the criminal liability of the lessee. In addition, the credit supervision system is perfect, and the leasing companies value the credit rating of the enterprise very much. The challenge to social integrity will be a very heavy price. Therefore, the bad debt rate for equipment leasing is very low. According to reports, the current world's largest leasing company - the United States Hertz Equipment Leasing Company's bad debt rate is only about 0.5%, and rarely occurs equipment loss.

Second, China's construction machinery leasing industry has a big gap compared with developed countries. At present, the main components of leasing in China are complex and numerous in quantity. According to incomplete statistics, more than 90% of leasing companies in China are small and medium-sized enterprises. In addition to this, the number of “floor-spread” private individuals with only a few equipments is even greater. The overall strength of the industry enterprises is relatively weak, the ability to resist risks is weak, and there is a lack of powerful benchmark leasing companies. Market management tends to be independent, there are no corresponding industry standards and market access standards, and the overall situation is in an orderly state of competition. As the entire industry is still in the low-level competition stage, the homogeneity of business is serious, and price competition is the most important means to compete for market share. The entire industry is hit by small-scale leasing companies and individual leasing. In recent years, equipment rental prices and profit rates have been on a downward trend. Many leasing companies are busy with their livelihoods and have less development investment. The benign development of the entire industry is constrained.

Third, business awareness is not advanced enough and product types are relatively single. Equipment is the carrier for leasing business, but merely providing equipment is just a low-level stage for the development of the leasing industry. At present, most domestic construction machinery leasing businesses still remain in the narrow stage of equipment leasing. Many leasing companies have limited capabilities because of their limited capabilities and inadequate equipment. In terms of leasing services, most leasing companies can only provide equipment maintenance services and cannot provide customers with comprehensive equipment solutions. In particular, for temporary requirements of customers, leasing companies are often unresponsive and unwilling or unable to solve them in time. Leasing companies' product offerings have no distinctive features and lack of core competitiveness. The entire leasing industry's product offerings are generally in the stage of simple equipment rental and rental collection.

From the perspective of the characteristics of large construction machinery leasing companies in developed countries such as Europe and the United States, in addition to providing direct equipment, leasing companies can provide users with full services ranging from business consulting, project planning, equipment selection and maintenance services to customer return visits. . Providing a tailor-made comprehensive solution is the core of business operations of high-end leasing companies in Europe and America. The perfect equipment supply scheme has attracted a large number of users of construction companies. The leasing business itself has a higher value-added industry, and the leasing company can obtain substantial profits. In addition, foreign large-scale leasing companies have a wide range of equipment brands and product types because of their strong capabilities. Customers have plenty of room for selection, especially for the temporary needs of customers to respond optimally in a short period of time.

Fourth, the lease agreement is not detailed and equipment delivery is not strict. Affected by the domestic legal construction process, most of the domestic leasing companies are indifferent to legal awareness. This is prominently reflected in the signing of leasing agreements. Many companies do not pay enough attention to leasing agreements. The signing of lease agreements is often in the form of a lack of operability.

Domestic leasing companies often only pay attention to lease duration and leasing price when signing agreements, and lack attention to other important details. For example, in the case of equipment technology, few comprehensive inspections and records are performed before delivery to customers. When the equipment is delivered, customers are generally not allowed to confirm and sign the existing technical conditions of the equipment. This leaves hidden troubles for the disputes caused by the suspension of rent after the end of the lease period. This is especially true for some rental projects without operators. The situation of the equipment lacks consensus and there is no basis for it. For the loss of equipment, both parties hold different opinions and it is easy to have disputes. Since there is no record of the integrity of the equipment in advance, the rental enterprise cannot recognize the abnormal wear and tear of the equipment in the process of use. In the event of equipment rental disputes, the lease companies are often in a passive state due to lack of contract specifications. It is easy to cause losses and increase the operating costs of the company.

While foreign large-scale construction machinery leasing companies sign equipment rental agreements with users, they will provide a detailed equipment technical status checklist for customer confirmation. The checklist parameters include basic technical indicators and vulnerable parts. Introduction, even including equipment photos. After the client agrees to sign the form, this form is held by both the leasing company and the customer as a basis for the technical condition of the rental equipment. When the equipment is returned, the renter shall make a full inspection of the equipment, fill in the equipment technical inspection form, and then compare it with the inspection table at the time of delivery of the equipment. In which the equipment is routinely worn down, the customer shall not be liable for compensation. If the loss exceeds normal, the customer will bear the corresponding liability.

Fifth, there is a shortage of professionals and the development bottle has encountered bottlenecks. The leasing industry has developed to this day, especially with the introduction of the financial leasing model, the industry has developed into a knowledge-intensive industry involving marketing, finance, taxation, legal, and other professional knowledge, and has raised the human resources of leasing companies. Claim. Due to the late start of the development of the leasing industry in China, there is no mature theory of the development of the leasing industry, and excellent leasing talents are extremely lacking. This has become the main bottleneck restricting the rapid development of the leasing industry. The training of outstanding talents is the responsibility of the entire industry and even the entire society. It cannot be accomplished overnight. If the Chinese leasing industry wants to achieve glory, it is a necessary condition to have a large number of outstanding talents. Any leasing company that wants to achieve long-term development must also cultivate talents. In the first place.