In mid-August, the national rotary drilling rig industry held a roundtable meeting in Qingdao, where one important topic was exploring ways to control operational risks for the industry and enterprises under the credit sales model. Extensive and in-depth discussions were held around this issue, and consensus was reached on measures to be taken in areas such as how to guide downstream industries to shift from "low-threshold investment for profit" to "professional construction for profit," how to use the collective strength of the industry to eliminate garbage customers, and how to raise the "default cost" for malicious delinquent users, thereby providing a reference for countermeasures to address these problems in the industry.

At present, credit sales in construction machinery are indeed facing many problems, which have invisibly added operational pressure to an industry that has been in a downturn for more than two consecutive years. To cope with the problems arising from financial leasing, various enterprises have taken measures one after another; for example, XCMG has implemented a halt to the credit sales model. But leading enterprises like XCMG are big and powerful; in a tightening environment, if small and medium-sized enterprises did the same, most of them probably could not bear it. Therefore, indiscriminately cutting off credit sales entirely will not work for enterprises with weak risk resistance. For this reason, the reporter of Foundation Engineering Network believes that credit sales are mainly a debt management issue, and therefore, in dealing with debt management in construction machinery financial leasing, the following "Three Musts" should be effectively implemented:

First, deeply understand the essence of sales

The essence of sales is to sell equipment and realize payment collection. On this issue, it is believed that the industry all knows it. However, it is precisely such a simple issue with only two layers of meaning that, in the process of implementation, those involved mostly "emphasize sales and neglect collection." If one fails to see that sales are aimed at realizing payment collection, and ultimately payment cannot be collected, what it brings to the enterprise is bad debt; the more such sales there are, the more the enterprise will suffer. At present, some construction machinery manufacturers and dealers, simply selling for the sake of sales, produce a very bad phenomenon: they seem unclear about the essence of sales, promise customers all kinds of conditions, paint beautiful blueprints, offer extremely low policy terms, and some even vigorously induce customers to enter blindly, causing some customers to become impulsive and make misjudgments about the industry situation and market demand, ultimately harming both sides. Therefore, the endpoint of sales is payment collection. Effectively realizing payment collection is not only being responsible to customers, but more importantly, being responsible to the construction machinery manufacturers and dealers themselves. Only sellers who realize payment collection on schedule are engaged in true sales, and only thus can later crises be avoided.

Second, effectively adjust customer relationships

Readjusting customer relationships means carefully analyzing customers and treating them differently according to their credit conditions. In the era of credit sales, customer relationship management is a major topic. To date, many manufacturers and dealers are keen on cooperating with major customers. The fact is that customers who purchase large quantities and high-value equipment are not necessarily major customers who bring substantial benefits to the enterprise; the key is whether they are honest and trustworthy. Some customers are very creditworthy, while others are not; some play tricks by various means, and some are even outright malicious customers. Such customers always have many excuses and often keep people in suspense; some, in order to receive special consideration in debt management, call you friend and brother, and this requires sober treatment. Friends and brothers are one thing, and debts and obligations are another; they must never be confused. If the two are confused, one is bound to be deceived and operations will be affected. In fact, some customers' habit of overdue payment is cultivated or caused by this fatal weakness of creditors; the creditor's repeated neglect and concessions turn bad actors into habitual overdue customers, and when overdue amounts reach a certain level and become a problem, they will break through the moral bottom line. Because when debts are large, some people will forget righteousness for profit. Therefore, readjusting customer relationships means establishing "customer credit" records based on customers' consistent credit performance and cooperating with relevant parties to effectively resist bad and even malicious users.

Third, decisively handle debt risks

Debt risks triggered by credit sales are not frightening in themselves; what is truly frightening is failing to take risks seriously, being negligent, and taking inadequate measures, thereby continuously expanding originally controllable risks until they finally become unmanageable. Therefore, enterprises must adhere to the principles of accuracy, speed, and effectiveness in debt risk management. Accuracy is the premise, speed is the key, and effectiveness is the goal. Accuracy requires precise judgment of debt risks; speed means acting quickly and cutting through knotty problems decisively; effectiveness means achieving results and solving problems. Regarding customers' intentional defaults and other serious potential risks, debt management must not be vague or hesitant; it must have firm goals, adequate measures, and rapid progress to resolve risks. In particular, for users who maliciously default on rent and cause serious impact in regional markets, debt management must be aimed at results, because at this time it is not merely about solving a certain overdue issue, but even more about establishing the seriousness of contracts and purifying the entire market order.

The above "Three Musts" of debt management in construction machinery financial leasing are only discussed in terms of their basic aspects; in practice, methods should be more numerous and more specific. However, no matter what methods are adopted, one point must be clear: non-performing credit assets will depreciate over time, just like a popsicle—the longer you hold it in your hand, the faster it melts, and the less remains in the end. This is the "popsicle effect" of asset management. The "popsicle effect" is undoubtedly an important warning to some manufacturers and dealers whose heads are still not clear.

Editor in charge: Wu Yue