The Research On Improvement Of Financial Lease Risk Management In Zoomlion

The construction machinery industry has been under a "cold winter" since 2012 to 2016.In the past five years,the economic environment of the domestic construction machinery industry catered a severe predicament which even several leading enterprises has a really poor profit or post a loss in their financial report.And things got worse during these five years.The toughest problem is overproduction which means lots of the inventories could be extremely difficult to sale.Financial leasing is a new type of credit form that aims to achieve "purchasing" in the form of"leasing".This sales mode has been really popular in the foreign country long time age.Such as Caterpillar,the global leading construction machinery company,95%of its sales revenue is achieved through financial leasing.This paper cites Zoomlion as an example.First,through the description of the economic environment and the analysis of its financial data,the article shows that the current financial difficulties of Zoomlion and points out that the necessity of strengthen the sales way of financial leasing.Then,the article lists the problems existing in the current financial leasing process and the current methods of risk management to it.I consider that the relevant departments of risk management did not own a good organizational structure system which led to the communication between departments and regions been blocked and thus greatly reduce the efficiency of risk management.Plus,the proportion of first payment and cash deposit has been on the decline which would pose a negative effect on Zoomlion.In addition,the credit evaluation system,the proportion of bad debts and the methods that handling the second-hand equipment also has some flaws.At the end,the article proposes some effective solutions to these problems.We believe that the measures that this article proposed will continuously strengthen the risk management of the financial lease in Zoomlion.Hence,the effiency of the risk management would also be improved.Finally,we hope this article could become a valuable reference for other companies in the Construction machinery industry.