Why the proportion of direct lease and leaseback is imbalanced

In our country, the scale of financial w88 online casino transactions has grown rapidly due to the contribution of banking financial w88 online casino companies. But we also found that in the business form of bank-based w88 online casino companies, the proportion of direct w88 online casino and sale-leaseback is seriously imbalanced. This has become one of the focus issues in the industry when China's financial w88 online casino industry is reviving. What's the reason? Is it wrong to engage in leaseback business?

The leaseback ratio is too high

from200710521_10572

2010Year, financial w88 online casino company (banking w88 online casino company9Home, accounting for assets80%around) the rental amount is2048billion yuan, of which the direct rental project investment amount is only718100 million yuan;2011Year, the rental amount is2907.82billion yuan, of which the direct rental project investment amount is1010.08100 million yuan. The proportion of direct rental investment amount is only1/3About.

As for foreign-funded financial w88 online casino companies and domestic-funded pilot financial w88 online casino companies, although there are no accurate statistical data, according to the author's observation, for most such w88 online casino companies, direct financial w88 online casino transactions are still the main business model.

What’s the reason?

The reasons that lead to the excessive leaseback ratio of financial w88 online casino companies can be classified into three aspects.

First, the financial w88 online casino company’s own reasons. First, the operation method of sale and leaseback is closer to that of bank lending, and bank lessors are more familiar with this operation. If the lessee enterprise uses existing equipment for w88 online casino financing, the business personnel of the w88 online casino company do not need to control and grasp the sales contract at all, and the requirements for the professional w88 online casino skills of the employees are relatively low. Bank w88 online casino companies have only developed in recent years, so it is more convenient to do sale and leaseback. Second, bank w88 online casino companies have relatively high requirements for economies of scale, low requirements for single profits, and fast sale-leaseback transactions. When bank lessors were first established and needed to occupy the market in a short period of time and build up the scale of corporate assets, sale and leaseback became the first choice.

Second, driven by the macroeconomic situation. Due to the deterioration of the international economic situation in recent years and the gradual tightening of domestic monetary policy in the past two years, many companies lack liquidity. In recent years, bank lessors have used sale and leaseback to solve the liquidity problem of lessees. If we strictly follow the accounting system, whether it is sale and leaseback or direct w88 online casino, it should be medium and long-term financing. Therefore, short-term sale and leaseback for the purpose of solving liquidity needs does not rule out the possibility of being sidelined.

Third, the result of detailed supervision of the financial industry. Can commercial banks engage in financial w88 online casino business? Can financial w88 online casino companies issue loans? Judging from the practice of the United States, which was the first to implement separate supervision, not long after the emergence of financial w88 online casino in the United States, the access to commercial banks in the financial w88 online casino business was relaxed. Various financial w88 online casino companies in the United States, including bank-affiliated w88 online casino companies, although financial w88 online casino is their main business, will also provide short-term loans when the lessee enterprise needs supporting working capital. However, my country's current principle of separate operation supervision completely separates the credit financing of commercial banks from the lease financing of financial w88 online casino companies. my country's financial w88 online casino companies and financial w88 online casino companies can only engage in w88 online casino business, and if they are engaged in granting loans, they are suspected of operating illegally.

At present, enterprises in my country have strong demand for credit funds, and newly established financial w88 online casino companies lack mature financial w88 online casino business capabilities. They are not good at doing w88 online casino transactions with relatively complex structures in the short term, but they are very familiar with lending. In addition, there are still many conflicts in the legal and regulatory environment of China's financial w88 online casino market, making it difficult for lessors to carry out various financial w88 online casino methods in the true sense. Therefore, in order to gain market share and not operate illegally, it has become an inevitable choice for bank w88 online casino companies to use the name of w88 online casino financing and provide after-sales and leasebacks that are actually credit financing.

In fact, in addition to the sale and leaseback of equipment, which is basically equivalent to a loan, there are similar issues. The financial lease of highways is essentially credit financing pledged by the toll right; the financial lease of real estate is essentially real estate mortgage credit financing.

w88 online casino features in leaseback

After sale and leaseback, can I continue to use it in the future? The answer is a resounding yes. It just shouldn’t be allowed to become the only and dominant trading model in this industry.

Furthermore, how to reflect the characteristics of lease financing in sale and leaseback is the key to the problem. Both the bank lessors themselves and their supervisory authorities are aware of this problem. “Don’t turn financial w88 online casino into loans and sales, but make financial w88 online casino business unique” has become the consensus of the competent authorities and various financial w88 online casino companies.

So, what are the characteristics of lease financing in sale and leaseback? Equipment assets are still used as the transaction vehicle, and when determining the "sale amount", the amount may not only be less than the asset's book value, but may also be greater than its book value, that is, the asset's market price is the basis for financing. Furthermore, combined with another classification method of financial leases, the principal in the rent recovered by the lessor can be a financial lease equal to the full repayment of the financing amount, or an operating lease that is less than the financing amount.

(The author is the director of the Leasing Research Center of the w88 casino)

Knowledge link:

Is sale and leaseback a form of financial lease transaction? The broad financial w88 online casino industry (the customary expression in English isfinancial w88 online casinoor just usew88 online casino), including a variety of transaction forms. According to whether it is fully repaid, it is divided into fully repaid financial leases (customarily referred to as financial leases) and non-fully repaid financial leases (customarily referred to as operating leasesoperating w88 online casinoto represent). And sale and leaseback (sale and leaseback) vs. direct lease(direct w88 online casino) Correspondingly, it is the difference in the direction of the w88 online casino equipment selection process, and another classification of the broad financial w88 online casino industry.

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