Sales slowed, machine tool industry could finance lease – financial leasing, machine tool industry – the machine tool industry

Macroeconomic impact of change on the equipment manufacturing industry is very straightforward. Recently, machine tool equipment manufacturers have already felt the slightest "chill", machine tool users there have been a wait and see mood. Faced with this situation, manufacturers and users could consider financing Lease Tide over the difficulties the way?

Machine tool industry suffered declining market

On the machine tool equipment manufacturers, the main problem currently facing are: first, substantially increase production costs, selling price increases can not cover all the costs, benefits decline. As steel prices and labor costs, machine tool manufacturing costs rise rapidly, although the machine tool sales prices have also been improved, but rose marginally, this imbalance of up to enterprise efficiency declined. Second, the order to reduce significantly, have postponed orders for delivery. Some General machine tools Manufacturing orders dropped significantly. This decline will directly lead to the production of ordinary machine tools machine tool manufacturers in the production of 2009 and 2010, the situation is very grim. Some heavy equipment for wind power, petrochemical and other industries continued to grow and invest in stable, but new orders have appeared down the momentum. Have been completed for the manufacture of equipment, especially for large equipment, due to credit crunch, corporate finance problems, not to mention equipment, the phenomenon of funds began.

Machine tool consumption for the industry, there have been structural changes. Machine tool consumption concentrated in the automotive industry, energy, electronics, mold industry, military industry, shipbuilding industries. In these industries, in addition to the energy industry, petroleum, chemical, wind power manufacturing and shipping industries, other sectors of machine tools consumption orders are down there because the investment sidelines.

Overall, orders for machine tool manufacturers sufficient money to provide basic end of the situation does not arrive. Order to reduce machine tool manufacturers as well as capacity expansion, machine tool sales will increase competition in the market; Sales Outstanding pressure, due to monetary tightening, customer funds to purchase machine tight, manufacturers shall return more difficult.

Machine tool finance lease may be able to ease the pressure on supply and demand

The face of this new situation, the machine tool equipment manufacturers to take his one-time payment sales or delivery of the sales model will face challenges, and therefore consider a new sales model to improve their competitive advantage.

Machine tool finance leases in foreign countries is a mature sales model, 30% of machine tool sales are conducted by way of finance leases. However, at home, except for the machine tool manufacturers, most of the machine tool business is still relatively new to a finance lease.

Machine tool finance lease is when our customers need tools that he came forward and the machine tool equipment manufacturers to discuss technical and commercial terms, and then come out from the leasing company to buy the machine, and leased to customers. Customers to pay the agreed lease term rental. After the end of lease, equipment purchase to the customer all.

Machine tool finance lease is essentially a tool for Corporate Finance. There are five major functions: finance function, marketing function, tax planning functions, financial statements, optimization and avoid unreasonable system.

Way using finance lease sale equipment, equipment for machine tool enterprises, one can enrich the marketing. Tight in the machine when the customer has funds may not be able to get equipment, factory sales policy generally is that all models shipped. But as the economic slowdown, orders for equipment to reduce, manufacturers must actively marketing. That kind of wait for the full amount shipped home situation was reversed, many manufacturers will seek the same customers. This time, customers improve the status of the initiative and negotiations will inevitably demand more of the manufacturers. In this case, the finance lease installments will address customer challenges manufacturers.

Second, it helps manufacturers to risk management. Did not intervene before financial leasing company, in a highly competitive time, some manufacturers have to accept clients hire requirements, many of the problems of this installment, including the business it is difficult to obtain comprehensive information for our customers, in order to neglect of customer orders for the risk assessment, some customers quality requirements will be unreasonable to delay payment of the payments. These problems will increase machine tool manufacturer receivables risk. The leasing company after the intervention, a comprehensive understanding of the client's financial status and credit levels, with a fair attitude to the customer for evaluation, and because money is the leasing company pays, but also to avoid the customer's quality requirements unreasonable situation deliberately refuse to pay money .

Third is to improve the financial position. Installment sales of real machine tool equipment manufacturers are providing customers with interest-free loans, on the one hand increase the company's financial costs, it also delayed the company's cash flow; the use of finance leasing to sales, you can back off on equipment, and installment sales, compared not only to improve the company's cash flow position, also reduced the company's financial costs, improve return on equity levels.

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