Location：
Industrial equipment
Industrial finance of Chailease International, based on development of medium-sized and small enterprise in all kinds of industries, provides diversified financing model.
Clients
Engineering industry：state owned and private projects, including road, bridge, water conservancy, railway and foundation projects
Construction industry：concrete manufacturing industry, asphalt manufacturing industry, cement manufacturing industry, private construction engineering industry
Machinery and equipment manufacturing industry：mineral mining industry, earth rock mining industry, engineering machinery and equipment manufacturing industry
Real estate industry： real estate development industry
Business patterns
New equipment financial leasing
Solve the customers’ fund demand for equipment purchase and expansion of the product line with financing maturity often as 2-4 years. Free installment payments could alleviate the financial pressure to the largest extent. The customer could obtain the right to use the equipment with no need to pay all the loans in advance and thus get the right of use the equipment or the production line as well as obtain profit rapidly.
Sale and Leaseback
Vitalize the existing equipment assets, implement the circulating fund, and solve the enterprise’s temporary, seasonal and project fund demand. All redemptory fixed assets on customer account, no matter purchased from domestic or foreign countries, can serve as subject matter for leaseback.
Tally Trade
Cooperating with raw material suppliers, processing plants as well as factor, store the annual spare parts procurement, specific product customization and raw materials with large fluctuations in prices in advance. Through tally trade, customers could master the supply of raw materials and guard against price fluctuations with no need to pay large sums of cash.
Case show
Background：
There is an electronic industrial company in Shanghai (referred to as Company A), founded in 1991 with registered capital of RMB6.78 million yuan. It mainly produces LED encapsulating material, semiconductor packaging material and semiconductor mounted frame etc. Since 2005, it has established cooperative relationship with Chailease when it just founded and sustained cooperation until now.
Cooperation program
2005： Leaseback
As Company A was at growth stage and needed operating funds of 2.4 million, it carried out the leaseback with our company with in-plant equipment as contract object. During 3 years’ of lease term, the company had obtained 2.4 million yuan and thus realized stable development.
2009： Equipment direct financial leasing
As Company A grew rapidly, it needed to expand the production line and purchase new equipment and thus demand of 5 million yuan. Thus it cooperated with Chailease once again. During 3 years’ of lease term, the company had obtained 5 million yuan and thus realized substantial development after the establishment of production line.
2011：Trade
Due to expanded production in 2010, Company A needed to purchase large quantities of raw materials which would occupy funds. At the beginning of 2011, Company A expected to continue to cooperate with our company. In view of Company A is one regular faithful customer of us, we give 3 million trade credits once again with total credit balance up to 6 million.
Use of funds: Purchase raw material of oxygen-free copper of which daily requirement is about 10 ton.
Fund demand: 4 million yuan for buying of 60 ton
Repay by installment repayment for 12 times with monthly amount of repayment less than 300000. Company A chose free reimbursement which means to repay less in slack season and more in peak season.
2012~2016：Trade
Years after 2011, since Company A has a stable order quantity and has no need to worry about the financial matter even in case of peak season, he applied tally trade mode towards our company for saving enough raw materials for peak season. In this way, even if he encountered difficult period for clients and recovered credit slowly, he would have no financial pressure as well as actively provide its clients with grace period, which led to customer acceptance and thus established a long-term cooperation customers. So far, Company A’s trade cooperation with Chailease has over ten times with the highest current balance up to 6 million and now even has working balance of 3 million yuan.
Result：
Revenue of Company A in 2005 is about one hundred million and has reached two hundred million in 2009; however, payment term is 2~3 months regarding to account receivable of more than 40 million yuan and payment term is 1 month regarding to account receivable of more than 20 million yuan plus with stock of about one hundred million, so that the financial pressure is really large. Through cooperation with Chailease, they greatly alleviate the financial pressure. At present, the economic environment is descending, though with dropping revenue, Company A could still maintain stable profitability with steady development.
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