The operational process is: sign a contract with the construction machinery manufacturer and agree on debt repurchase → the designated dealer opens a deposit account and deposits a guarantee fund in a lump sum → the borrower purchases construction machinery from the designated dealer and pays a down payment → the borrower submits a loan application with the down payment receipt and its copy and meets other loan conditions → the purchased construction machinery is set as mortgage collateral and loan-related contracts are signed with the borrower and the designated dealer → collect the invoice and other documents for the purchase of construction machinery and jointly handle the mortgage notarization procedures with the borrower → urge the borrower to insure the collateral (with peace of mind) and specify the bank as the first beneficiary → the bank loan is transferred to the designated dealer's account → the borrower submits the original payment receipts to the bank and takes delivery of the construction machinery → the borrower repays the loan on schedule → handle the mortgage deregistration and return various documents.

　　The loan features low repayment pressure for borrowers. Given the relatively high investment cost and long payback period of construction machinery, the bank sets the maximum term of construction machinery mortgage loans for individuals at three years, and for corporate entities at five years. This not only effectively eliminates the pressure on customers to pay the full price of construction machinery at once, but also enables borrowers to operate, earn, and repay simultaneously.

　　Borrowers gain profits early. Borrowers only need to pay a down payment of no less than 30% of the equipment price to obtain the construction machinery in advance for production and operation, thus realizing operating income earlier.

　　Preferential loan interest rates. The interest rate for construction machinery mortgage loans is set at 20% to 30% less than the upward floating rate of ordinary guaranteed loans. In addition, to encourage borrowers to be honest and trustworthy, the bank offers a further 10% to 20% discount on the loan interest rate for customers who have established long-term good cooperative relations and whose cumulative deposit balances reach a certain standard.

　　Given that the collateral for construction machinery mortgage loans is actually controlled by the mortgagor, resulting in relatively high risks, the bank mainly mitigates risks through risk transfer and risk prevention. Up to now, only one such loan has become overdue, and it has been fully recovered by directly deducting from the dealer's guarantee fund. To help the dealer recover losses, in accordance with the new provisions of the Property Law, the bank also applied to the court for compulsory enforcement of the collateral in its own name.

　　Establish a dealer guarantee fund. Before the construction machinery mortgage loan is launched, the dealer is required to open a RMB basic deposit account or general deposit account with the bank and deposit a guarantee fund of no less than 10 million yuan in a lump sum. The leverage ratio of the guarantee fund to the guaranteed loan amount is 1:3. It is agreed with the designated dealer that if the borrower defaults, the bank will directly deduct the due and unpaid principal and interest and the expenses required to fulfill the guarantee responsibility from the deposit. After deduction, if the balance in the special account falls below the required guarantee amount, it must be replenished within 15 working days.

　　Establish a debt repurchase mechanism. It is agreed in the contract with the machinery manufacturer that if the borrower fails to repay in full on time for three consecutive periods or six cumulative periods, the bank has the right to terminate the contract early, and the manufacturer shall unconditionally assume the payment responsibility for the borrower's unpaid loan principal and interest and related expenses. After full payment, the bank will transfer the creditor's rights to the manufacturer.

　　Establish a compulsory insurance system. Borrowers are required to insure the mortgaged construction machinery, with the bank explicitly designated as the first beneficiary, and the insurance period shall not be shorter than the loan term. It is also specified that during the mortgage period, the borrower cannot interrupt or cancel the insurance for any reason. If damage occurs outside the scope of insurance liability during the insurance period, the borrower shall bear full responsibility.

　　Strengthen dynamic tracking management. Communicate regularly with the equipment manufacturer and, through the GPS positioning control system installed on the machinery, promptly understand and grasp the status and location of the mortgaged movable property. Increase the frequency of post-loan inspections, assign dedicated personnel, and regularly visit to check the integrity, possession, and value changes of the mortgaged movable property to prevent the mortgagor from disposing of it without the lender's consent. Once it is found that the location of the collateral is abnormal or the mortgagor has economic disputes with a third party, strive to notify the third party immediately that the item has been mortgaged, and urge the mortgagor to stipulate in the contract with the counterparty that the item shall not be retained.