Printing equipment financing lease

First, the development of financial leasing

Financial leasing, also known as financial leasing, is a special financial service integrating trade, finance, and lending. Lessors provide financial services rather than simply renting services. Financing leases are quasi-financial businesses and may be operated by financial institutions or non-financial institutions. The financial lease was born in the United States in 1952. It is a financial communication method that combines funds and equipment in a short period of time, at a low cost, and with specific procedures. Simply put, a financial lease is somewhat similar to an instalment payment. After paying the rent, the lessee often pays a nominal nominal price for the ownership of the item. This is also the biggest difference between financial leasing and traditional leasing. It is like renting a car, how long it takes to pay the rent for a long time, but the ownership of the vehicle is still owned by the owner. This is traditional leasing. However, if it is stipulated in the lease contract that the tenancy period expires, the lessee will only need to pay another one yuan to obtain the ownership of the vehicle. This becomes a financial lease.

In developed countries, financial leasing has become one of the major ways of investing in equipment. On average, 20% of equipment sales in the world are accomplished through financial leasing. The market penetration rate in the United States is 30%, Germany's market penetration rate is 18%, and Japan's market penetration rate is 8%. However, China has no clear data. According to industry estimates, it is only about 1% to 2%, and thus there is a wider market. Expansion capacity.

In the past, China's financial leasing was mainly used for the purchase of large-scale equipment such as medical care, air transport, and municipal construction. In recent years, the eyes of financial leasing have gradually turned to small and medium-sized industries similar to the printing industry, which has provided new development opportunities for many small and medium-sized enterprises that have difficulties in funding. Financing leasing has unique advantages in serving as the main channel for SMEs' entrepreneurial and technological innovation financing: First, separation of ownership and management rights helps prevent credit risks; second, financing and melting combine to achieve a unified capital and trade. It will help to save financing costs and reduce the transaction costs of related parties. Third, the method is flexible and diverse, and it can raise more funds. Fourth, it is rich in high technology and information and is conducive to strengthening and improving financial services. These advantages of financial leasing can enable SMEs to obtain valuable financing shares under the difficult circumstances of “big banks are not willing to lend, small banks do not dare to lend, and capital markets are difficult to list”, thus ensuring the smooth implementation of technological innovation.

The case of relatively early domestic financial leasing entering the printing industry took place in 2001. Shanghai New Century Financial Leasing Co., Ltd. successfully introduced the Heidelberg press for Shanghai Lianghong Printing Co., Ltd. The success of this financing has created new competitive opportunities for Liang Hong Printing. Recalling the first attempt of the financial leasing industry to enter the printing industry in the country, Ms. Liu Jie, a member of the New Century Company, explained that before doing this business, they had a thorough understanding of the printing industry. They think: First, the per capita consumption in the domestic printing market is much lower than the international level, so there is a lot of room for development; second, there is a greater potential for equipment replacement in the domestic printing industry; and thirdly, with the development of our economy, material culture With the continuous enrichment of life, the demand for printed materials is also increasing. Fourth, the printing industry is in good condition and is on the rise. After several business trials, the company found that 98% to 99% of the customer groups they serve are private enterprises. The veterans of these private companies are very good in quality, very dedicated, and very stable in repayment. It is precisely because of this that Shanghai New Century Financial Leasing Co., Ltd. has positioned its business in the printing industry. After more than two years of hard work, they have already raised more than 200 million yuan in domestic funds, and six of the seven printing companies that have already terminated the contract continue to work with them to purchase new printing equipment through financial leasing. As the lessee of this financing lease, Liu Xuliang, general manager of Shanghai Lianghong Printing Co., Ltd. recalled that in the absence of funds at that time, financial leasing provided very good opportunities for development. Although this method also has many deficiencies, such as higher interest rates, but as long as we can grasp the investment cost and recovery ratio, financial leasing is desirable.

Second, financial lease risk analysis

The benefits of financing leasing into the printing industry are numerous. For printing companies, they can use less start-up capital to get the equipment they need to start production; for the leasing company, they can get long-term stable income, and because there is no transfer of ownership during the lease, the risk is relatively small; for equipment production For manufacturers, leasing allows them to increase customers and expand the market.

However, investing means risk. The same is true of financial leasing. As lenders and lessees in financial leasing, leasing companies and printing companies each bear risks.

Let us analyze the role played by printing companies and leasing companies in introducing imported printing equipment through financing. As shown in the figure below, the printing factory first submitted a tax exemption application to the customs. After obtaining the tax-free quota, the printing house purchases printing equipment through the leasing company. This way, the record at the Customs is owned by the printing plant. When the leasing company pays the full amount of equipment to the supplier through the import and export company, it obtains the ownership of the equipment from the supplier, which means that the supplier acknowledges ownership of the equipment to the leasing company. When the leasing company completes the purchase of equipment from the supplier, it must file with the Customs and the equipment has been pledged by the customer to the leasing company. Until the printer pays all the money to the leasing company, the ownership of the equipment is entirely owned by the printing house.

At this time, there was a risk that the leasing company would bear: once the lessee could not pay the accounts of the leasing company owed, the leasing company would not be able to resell the equipment; the leasing company could only provide the tariffs and the corresponding value-added tax to the customs. Deal with the purchased equipment.

We assume that the printing factory's financing ratio is 50% of the full amount of the equipment, that is, the down payment is 50%, plus a margin of 10%. Customs duties are 16% and VAT is 17%. If the financial leasing company has failed to repay the rental due to the closure of the printing plant or other reasons after the equipment is purchased, if the financial leasing company wants to withdraw the equipment, it means that the tax will be paid first, that is, 16% of the full amount of the equipment. 17% = 33%. If the equipment is successfully sold at its original price, the leasing company has no economic loss, and after recovering its receivable portion, it can also return the surplus funds to the printing factory; if the equipment cannot be sold at the original price, the leasing company may be economically There is a loss. It is precisely to reduce the risk that financial leasing companies will not easily expand the financing ratio, and the repayment period in the printing industry is usually 1 to 3 years, and there are almost no more than 5 years.

From the above analysis of the risk of financial leasing companies, we can easily see that if the financial leasing company really suffers from economic losses, then the printing plant will first bear greater losses, it can be said that "the talents and the two empty"

This can also be considered risk transfer. According to the "Contract Law of the People's Republic of China - Financial Lease Contract", at the same time as the lease contract was signed, the rights and risks in the purchase of leased property were also transferred to the lessee. Let's analyze the risks that the printing factory will bear.

The printing factory first submitted a financing application to a financial leasing company, and after a credit evaluation, the establishment of a financial lease form and the signing of a letter of intent for financing, the financial leasing company's evaluation of the value of the printing equipment, the signing of a finance lease contract, and the transfer of the right to use the printing equipment to the printing factory, When the leasing company needs to purchase equipment from the equipment supplier, the printing plant will pay the financial leasing company a down payment and security deposit, and provide the property or property equivalent to the financing amount as collateral. At the same time, the guarantee will be used by the printer. We still assume that the down payment is 50% and the margin is 10%. Then the same financing ratio is 50%. The current annual interest rate for financing is 10%~I1%. If the printing factory cannot fulfill the financial leasing contract, it means that at least 60% of the full amount of the equipment is lost but nothing has been obtained. In addition, some of the rents that have already been repaid (currently financial leasing companies usually use monthly repayments), financing management fees, and financial leasing process costs, such as fair fees, guarantee fees, evaluation fees, and so on. The mortgaged property or property will also be resold. Because for the leasing company, it is only possible to return the surplus to the printing factory after recovering all the payment for the paid equipment. The equipment is not counted here.

This also shows that it is almost impossible for the printer to default. Although financial leasing is a better way to solve capital, it is not applicable to any enterprise. It can be said that once a printing company chooses a financial lease, it means there is no escape route. If you choose to purchase equipment in the form of financing, you should ensure that there is sufficient and stable business volume and sufficient margins. Only fully considering every link, preparing for financing, and rationally choosing a financial lease can really bring about practical results for the printing factory. Yuan Zong of Chengdu Zhongjia Design & Printing Co., Ltd., which purchases printing equipment through financial leasing, believes that although it is clear that pressure from bank loans is much greater in this way, the bank loan threshold is too high, and it is difficult for SMEs to obtain loans. Financial leasing has just solved this problem; and the pressure on the choice of financial leasing actually depends on each company’s own operations and confidence. If there is enough business volume and a good business philosophy, this Pressure can be turned into power.

Third, the financial leasing market competition

At present, there are more and more financial leasing companies engaged in equipment leasing in the printing industry, such as Shanghai New Century, Zhejiang Financial Leasing, and Gold Coast. To get involved in equipment leasing in the printing industry, it is necessary not only to have the qualifications of the financial leasing company for the financial industry, but also to understand the printing industry in depth. For this reason, I visited Zhejiang Financial Leasing Co., Ltd., which was involved in the printing industry. Wang Zeng said that in the printing industry, Zhejiang rent has also been going down for a while. There are two main reasons for entering the industry: First, financial leasing is itself an industry, and only when it is combined with the industry can it have vitality; The printing industry is a basic industry, and it maintains a steady growth in China with good prospects for development. Wang also introduced that in order to better serve the printing industry, they will hire industry experts to guide investment and strengthen their communication with the printing plant. As the first domestic cooperation partner of Zhejiang Rent, Zhao Xiaowei, general manager of Chengdu Jingwei Surveying & Mapping Printing Technology Co., Ltd., which signed the contract with Zheliang at the beginning of this year, said that when considering the purchase of equipment by financial leasing, it needs to contact several financial leasing companies. Detailed consideration was given to the rental rates and services, etc. They chose Zhejiang rent and have now entered a stable repayment stage. Zhao Zeng also said that if the company has any financial problems, they will still consider financial leasing.

I believe that in addition to professional financial leasing companies, there will be other financial institutions involved in the printing industry, and the market for financial leasing will continue to improve, the national legislation will also be constantly reformed, so that financial leasing more objectively safeguard the interests of lessors and lessees .