Delinquency Control Research In Construction Equipment Financial Leasing On ASD Company

In China, leasing company has been appeared from the80’s. From yearof2007in China, the industry of financial leasing has obtained a fast andgreat development. In recent years, it got the average compound growth rateof above40%, the market capacity of above1.5trillion. Constructionmachinery industry as a tool of the large infrastructure, the development ofthe whole industry is strongly affected by the economy as a whole. In China anew round of economic policy stimulus which was launched in2008made agreat impetus to the development of the construction machinery industry.From the beginning of2009, construction machinery obtained a considerabledevelopment by means of developing credit sales model through financialleasing, and furthermore, in2010and2011, construction machinery financialleasing accounted for half of the credit sales in this industry. Based on the business data from the business of ASD Companyconstruction machinery financial lease, data shows that since2012, therewere plenty of overdue business payments. Until the first half of2013, therapid deterioration of defaults situation in the whole construction machineryindustry credit sales greatly increased the contingent liability risk ofconstruction machinery manufacturers, and also affected the survival of thebusiness model in this industry. In this paper, the analysis was based onabove considerations, from the ASD company’s business model and allbusiness participators and view of microeconomic and macroeconomicperspective, to analyse the reasons of delinquency. According to the resultof analysis, give out the improvement suggestion under actual marketsituation, mend the contract conditions, upgrade the business competitiveness,and enhance the executive ability of business policy. Finally depend on myexperience in this industry, I give out the unfavourable prediction onconstruction equipment financial leasing development in china.