The task of leasing - to survive!

What is the impact on the leasing market in your opinion would repeal in 2009 of accelerating depreciation coefficients for 1-3 teams? This measure will not lead to some significant effects, all effects will be covered by the crisis. After the restoration of markets it will mainly affect the market for leasing of vehicles, but for him it is absolutely critical, because the car lease term is 2-3 years (subject to amortization to zero or 30% residual value) is absolutely normal. National objective - to stimulate investments in expensive high-tech equipment with long periods of funding. And the possibility of accelerated depreciation is necessary not to increase the turnover of the leasing company to three years to invest the same money three times, and long-term financing for equipment with long useful life. The essence of accelerated depreciation is matching the timing of depreciation of such property to the possible timing of loan resources. Otherwise, repayment of fund raising would occur from the leasing company from the net profit. Since the abolition of accelerated depreciation will affect only what you can and so depreciated over 1-3 years, there is neither a tragedy. How the crisis affected the development plans for your company? High probability of occurrence of the crisis was clear and a half years ago, the question was only when the heavy phase will begin. Therefore, any ambitious plans we have built, knowing that it is time to carefully work on the market, not to chase growth, we have worked in this time period only with proven, reliable clients, a conservative approach to security, and comply with the most important task - to maximize margins and increase profitability. The problem of portfolio growth was replaced by an increase in its yield and reliability, even at the expense of reducing it. Since mid-2007 we have not entered into any major new project with new clients. Therefore, the current crisis, we came up with the minimal obligations (less than the monthly earnings of the company) on deals and we will not have problems in their implementation. Plans for the development of the company will build after it will be clear which industries, which customers can be financed. Now the development of companies will be to improve collection of revenue on existing projects, not assumptions delinquencies and defaults. How the crisis affected the company's product line? (Was the rejection of the existing / new product introduction?) Y "Avangard-Leasing has always been individual projects, and the crisis in each case must be approached with greater caution and care. Now talk about standard products is simply meaningless. What sources of funding were from leasing companies in crisis? The main and almost the only source of funding is revenue today. While with us still running a number of western banks, export insurance agencies, and of course we receive funding from the Bank "Avangard" as a parent. But I repeat: revenue - is the most important in a crisis funding source. Current revenue is an indicator of quality and reliability of the portfolio. Bond Market: how the rates and terms are attractive to LC? Whether to issue bonds now? Current quotations bonds of many leasing companies, ranging from 40% to 100% per annum, then lease should be given not less than the 45%? I would just not risk giving money to the client who takes the money at such rates. What kind of accommodation bonds can be said? Domestic and foreign lessors "daughter": Who is easier to find the funding? Difficult for everybody, and here the benefit of the company who have a good quality portfolio, regardless of them foreign or Russian. The majority of foreign "mums" too many problems in their markets, to "daughter" might have been hoped for help. Stricter requirements for borrowers: Market recovery or his death? After a year and a half we are waiting for stabilization of the market through a tough shake. You can not finance the leased asset without realizing how much it really costs. For example, as in the current situation to determine the size of the advance lease cars? 5 years ago it cost 30 thousand dollars, 2 years ago 50tys, this summer was worth 100 thousand Which now its real value if the stock price slid to 5 years ago and the cost of the metal fell by 2,5 times? Aware of the transaction mid-summer with an advance of 10%, ie, funding was 90 thousand dollars, I wonder how in the event of a default client leasing company will sell the car for those 90 thousand dollars when we can already buy a new one for 60-70 thousand ? We watched last year, when real estate, cars, ships were financed with the advances of 10-15%, provided that in the last year prices increased by 30-50%. And it's only because the high competition between leasing companies and ambitions require management of growth, despite the risks. No sense of reality has brought many a difficult situation, so the death of the company is inevitable, then recovered. Private equity: whether to wait for their activity and entry into the capital lessors? There are serious doubts that the activity will be high. Funds for the next few months is much more interesting will be included in a production company with a clear market, but have great problems with short-term liquidity. These companies are now set. So you can get a much higher return on investment than when entering into capital leasing company. P.S. Today is the first task of each leasing company, it is also the last - the survival, not an assumption of defaults and accumulation of bad debts. This threat exists, it is in the coming months will only increase with the growth of the crisis in the real sector. Next question defaults many lessees will become a reality and as a consequence increase the threat of bankruptcy leasing companies. This agenda next few months.