The construction and transportation financial service office of Chailease International has department mainly responsible for transportation and financial industries.

Passenger transportation industry

Road passenger transportation industry, including long-distance passenger transportation, short-distance passenger transportation and tourist transportation etc.

Trucking industry

Logistics transportation industry, including third-party warehousing, line logistics, port cargo transportation and express delivery etc.

Hazardous materials transportation, cold-chain transportation and general cargo transportation

Capital Leases- New product lease back

Forwarder purchases commercial vehicles and pays the new vehicle in advance for obtaining proprietorship and then finishes the vehicle registration and payment of insurance money etc. before selling to Chailease International and leaseback so as to activate the vehicle purchase capital; in this way, the forwarder could satisfy the operating requirements as he could obtain the right to use the car by paying for part of the payment.

Capital Leases-Old product lease back

Through selling the used commercial vehicles within a certain length of period to Chailease International as well as signing leasing contract with the latter, the forwarder could lease back the right to use the car through operating lease or financing lease method; in this way, he could activate the existing vehicle capital and turn them into circulating fund so as to realize the transfer of fixed assets into monetary capital and thus meet the financing needs.

Background

One Logistics Company in Shanghai free trade zone is mainly engaged in short-distance distribution and transportation for automobile and mobile phone parts with almost 100 freight cars under his name. Though customer order is stable and volume of business is steadily growing, he has received new orders recently, which caused the existing cars’ full load or even overloaded operation and thus now has an urgent need to purchase 8 sets of medium-sized semitrailer tractor and heavy semitrailer tractor for satisfying the business requirements; the acquisition cost is total about 1.5 million yuan. One-off payment would compress company’s circulating fund for normal operation and thus affect the company’s normal operation; but fund raising is the primary problem as to borrowing externally. Therefore, the company was caught in a dilemma.

Scheme

This company chose to cooperate with Chailease International for purchasing new vehicle and among which, the Chailease International would help him to complete the purchase of 14 cars while the company would only need to pay for the down payment. Monthly mortgage payment helps to solve the problem of paying off 1.5 million at one time as well as alleviate the large financial pressure.