Financial leasing risks and analysis

Financial leasing risks and analysis

Introduction: what are the risks of financial leasing? The following is the relevant analysis information, welcome to read and learn.

Product market risk

In the market environment, whether it is financial leasing, loans or investment, as long as the funds are used for additional equipment or technological transformation, first of all, we should consider the market risk of the products produced by the leased equipment, which requires an understanding of the product sales, market share and possession of the ability of the market, product market development trends, consumer structure and consumer mentality. development trend, consumption structure, and consumer mentality and consumption ability. If these factors are not fully understood, the investigation is not detailed, it is possible to increase the market risk.

Financial risk

Because financial leasing has financial attributes, the financial risk throughout the entire business activities. For the lessor, the biggest risk is the lessee's ability to pay back the lease, which directly affects the operation and survival of the leasing company, therefore, the risk of paying back the lease from the beginning of the project, should be highly concerned.

Currency payments can also be risky, especially international payments, and improper selection of payment methods, payment dates, times, remittance channels, and means of payment can increase the risk.

Trade Risk

Because financial leasing has trade attributes, there are risks in trade from ordering negotiations to trial acceptance. Due to the commodity trade in recent times the development of a more complete, the community has correspondingly established supporting institutions and preventive measures, such as letters of credit payment, transportation insurance, commodity inspection, commercial arbitration and credit counseling are on the risk of taking preventive and remedial measures, but due to the different degree of awareness and understanding of the risk of some of the means of commercial nature, coupled with the lack of experience in business management and other factors, these means were not All of them are adopted, so that trade risks still exist.

Technology risk

One of the benefits of financial leasing is the introduction of advanced technology and equipment before other enterprises. In the actual operation process, factors such as whether the technology is advanced or not, whether the advanced technology is mature or not, and whether the mature technology infringes on the rights and interests of others legally are all important reasons for technical risks. In serious cases, the equipment can be paralyzed by technical problems. Others include economic environment risk, force majeure and so on.

1. Risk assessment system. The system should be encompassed, including risk assessment department, the Ministry of Commerce, asset management and other departments **** with the establishment. Respectively from the customer risk, industry risk, asset operation risk and specific project business risk multi-dimensional establishment.

2. Risk assessment model. According to their own financial leasing company's business involved in the industry, the establishment of an exclusive . Risk assessment model, specifically including customer assessment model, seller assessment model.

3. Project inspection and follow-up mechanism. Before and after the signing of the project should be ongoing project follow-up visits, at any time to grasp the operation of the lessee, so as to avoid false transactions and vicious delinquency.

4. Asset management. The company's main goal is to provide the best possible service to its customers. This is to ensure that the customer is monitored and that the leased objects are managed in the same way as the customer. Ensure that the customer is monitored, and ensure that the leased object is re-disposed of in the event of repossession and other malicious situations.

5. Insurance. Insurance should be purchased on the leased objects of the project to share the risk of the asset in the unlikely event of a repossession.

6. Vendor risk. The seller of the leased object should share the loss of the asset in the event of malignancy in an appropriate form.

7. Leasing program involved. Match the project risk from the perspective of financing term, financing ratio, repayment method, and the level of return.

I. Business philosophy and risk control concept

Financial leasing, as a form of financial services, there is a huge difference between the business philosophy and general commodity trade. Financial leasing as a form of debt financing, business philosophy must adhere to the principle of risk control first, that is, must be in the risk of controllable premise to seek business development. That kind of business are not talking about risk control argument is naive, because the success of the sustainable operation must be the first system, in the institutional framework to find the corresponding market and business, as if the game is the first rules before the game. The kind of first grasp the development, such as scale up to come to discuss the idea of risk control, because of the lack of preliminary wind control will leave a huge aftermath, never desirable.

Risk control is also reflected in the company's risk control department with industry research, the direction of industry expansion for the company's business to develop guidance, and because of the differences in the industry, respectively, to develop different entry thresholds and risk control standards.

On the other hand, risk control is never the pursuit of zero risk, in all debt financing, zero risk business in fact does not exist. Therefore, risk control is not to control the death, but to provide guidelines for business development, marketing, and the design of leasing programs with risk tolerance, risk control programs, and basic standards of risk control.

The whole process, all staff, comprehensive risk control

Risks are everywhere, all the time. A full range of risk control must be systematically designed and comprehensive arrangements, in order to strive to achieve as far as possible to avoid hanging ten thousand leakage.

The whole process of risk control, from business development, marketing, after due diligence, leasing program design, risk disclosure and assessment, the arrangement of risk control programs, project review meeting of the democratic, collective assessment, the final approval of the veto, to the lease of the asset management, as well as compliance management and internal audit supervision, the leasing business operation of the whole process of the risk control are a ring without missing, divided into troops, and the mouth.

The whole process of leasing business operation

All risk control, that is, not only the first-line business personnel (account manager, project manager), the second line of business risk control personnel (risk control manager), review members, asset management, audit staff and other specialized in risk control, the company's other personnel from different perspectives, different channels of information to focus on the risk of the company's business operations, such as financial personnel from the collection of rent to learn about the lessee's financial information Whether there are changes; administrative staff can also be concerned about the media and life of the company's customers in the scattered information, to provide information for the business staff, the entire company's personnel to pay attention to the business risk, than just the business line employees to pay attention to the risk, will be more thoughtful, less omission.

Comprehensive risk control, that is, pre-lease industry analysis, industry risk control guidelines, project research, risk assessment, collective decision-making and other matters in the wind control, post-lease asset supervision (as well as the introduction of judicial assistance), interlocking; from the financial, business, asset and revenue multi-perspective research, judgment and supervision, the risk will be controlled in the company's acceptable level.

The establishment of a full range, full staff, comprehensive risk control mechanism to form ?

The company's risk management system is based on a three-dimensional, dynamic system of risk control.

Third, the checks and balances between internal organizations and support

1, Business Development Department. As the front office, first-line marketing department, not only to investigate, judge the lessee credible, leasing feasible, but also must reveal the risk of leasing, the initial development of risk control programs, and must be responsible for the authenticity of the survey data, the situation? This is the first basis for subsequent risk revelation, analysis and judgment. Front-line business personnel must be highly aware of the true nature of the information on the business of the whole process operation has a very important role.

2, wind control department. On the one hand, we have formulated industry guidelines for the main leasing industry to reduce the ineffective marketing of the first line of business, and put forward the wind control standards of each industry for the first line of business personnel to refer to in the design of leasing programs and wind control measures for specific projects.

On the other hand, it conducts compliance and safety reviews on specific leasing projects, carries out risk revelation, risk analysis, risk assessment and judgment, and puts forward supplementary proposals on risk control measures (communicated with the business department), and proposes risk control review opinions to the evaluation committee.

3, leasing project review committee. In accordance with the company's organization of the project review (rather than the back-office departments to organize the review) mode, by the company's senior management, the middle level of the relevant business line responsible person, the backbone of the wind control, lawyers, and external industry experts (wind control professional and the project in the industry) composed of the evaluation committee to independently review, independent voting to form the evaluation opinion, according to 70% in favor of the system of secret ballots to decide that the project can be operated, but also may be conditioned to pass.

4, approver. According to the general manager authorized to approve the leasing project in the net assets of 10% or less, more than the chairman of the approval of the division of labor, the final approver independent approval. The final approver must attend the review committee to listen to the views of the review committee agreed to the project can exercise a veto; the review committee negative project can be organized a reconsideration, but can not be negative (and reconsideration of the negative) of the review committee to approve the lease of the project.

5, Asset Management Department. Responsible for the safety and integrity of the leased assets after the lease for dynamic, real-time supervision; rent collection; timely retrieval of assets that can not collect rent to reach the contractual agreement to retrieve the premise, in order to grasp the initiative to control risk; market disposal of assets retrieved for cash (can also be handed over to the Ministry of Business Organization re-rental).

6, Audit Compliance Department. Before the system, the process design of compliance with the issuance of advice; full participation (including sample participation) in the project investigation, wind control review, the review of the meeting as well as asset supervision, supervision; leasing project after the end of the on-site and off-site audit inspection, after the analysis, feedback, in order to promote the business operations, management and wind control level of enhancement, and at the same time, to prevent moral hazard and operational risk.

Four, wind control responsibility linkage system

Employee income and business volume and risk double linkage. That is, half of the total income of the company's employees according to the rank of the monthly advance, the other half of the performance is linked to the performance, every six months to assess the cash. In the realization of the income, the formation of a lease relationship to cash half, collect the rent and then cash the remaining half. For the latter half, such as the recovery of leased assets without loss, the remaining half can only be cashed 50%, such as loss, will not be cashed. In this way, each employee in the leasing operation will be the wind control into a conscious behavior. Of course, in the company's staff income distribution, the business line of the staff income is higher than the logistics line, the first line is higher than the second line, the first line and the business line risk linked to the proportion is higher than the second line and logistics line.

Pilot follow up mechanism. That is, the operation of each leasing project related personnel (including the project manager and his department head, the wind control commissioner and his department head, the deputy general manager in charge, general manager and chairman of the board of directors, can also include the financial, administrative departments in charge, etc.) according to the size of the responsibility *** with the follow up, according to the total amount of not more than the net financing of leasing project a certain percentage (such as 5%) matching input, to achieve risk *** share, benefit *** enjoy.

For the leasing project risk and loss, according to the type of risk, the reason for the emergence, the size of the loss, sub-criminal, de-listing, demotion and demotion, deduction of performance income, education, etc. to be held accountable for the risk.

The main characteristics of financial leasing is: because the ownership of the leased object is only the lessor in order to control the risk of the lessee's repayment of the rent to take a form of ownership, in the contract at the end of the eventual possibility of transferring to the lessee, the purchase of leased objects by the lessee to select the maintenance of the lessee is also responsible for, the lessor only provides financial services, the lessor is responsible for, the lessor is only to provide financial services, the lessor is only to provide financial services. The lessor only provides financial services. The principle of rent calculation is: the lessor takes the purchase price of the leased object as the basis, and calculates the rent according to the time the lessee occupies the lessor's funds, and calculates the rent according to the interest rate agreed by both parties. It is essentially dependent on the traditional leasing on the financial transactions, is a special financial instruments.

The characteristics of financial leasing are generally summarized in five aspects.

First, the lease is decided by the lessee, the lessor to fund the purchase and lease to the lessee to use, and in the lease period can only be leased to a business use.

Second, the lessee is responsible for the inspection and acceptance of the leased goods provided by the manufacturer, the quality of the leased goods and technical conditions of the lessor does not guarantee the lessee.

Third, the lessor retains ownership of the leased property, the lessee pays rent during the lease and enjoys the right to use, and is responsible for the management, repair and maintenance of the leased property during the lease.

Fourth, once the lease contract is signed, during the lease, no party has the right to unilaterally withdraw from the contract. Only if the leased property is destroyed or proven to have lost its value can the execution of the contract be suspended, without reason to break the contract will have to pay a heavy penalty.

Fifth, after the end of the lease period, the lessee generally have two options for the leasehold purchase and surrender, if you want to stay in the purchase, the purchase price can be negotiated by the two parties to the lease.