BEIJING, CHINA, MAY 7, 2008--Chinese manufacturers and multinational firms expanding operations within China are interested in vendor finance programs to increase sales of manufactured goods—everything from construction vehicles to telecom systems-- but risk management is quite different here than in North America, Europe or even Japan, according to Jonathan L. Fales, a speaker at an upcoming finance summit planned for May 15-16 in Beijing, China. Fales is a consultant with The Alta Group, an international firm that has been exclusively focused on the equipment leasing and finance industry since 1992.
Risk management relies more on relationships in China, while in other parts of the world credit scoring and credit bureau data pave the way for business, Fales said. He will speak about ways to move forward in vendor finance, when to say no, and how to determine which financing structures will work best in various Chinese markets. Prior to the summit, Fales plans to meet personally with a half dozen Chinese businesses about their interests in equipment leasing and finance. Fales, who is based in Kingsport, Tenn. , is a frequent speaker and writer about the subject of international vendor finance. Prior to becoming a consultant with The Alta Group, he held numerous positions around the world with IBM Global Financing, including general manager of Asia Pacific South Global Financing and a member of IBM Credit General Business Customer Financing Group, which focused on marketing leases through indirect dealer channels.
The summit sponsored by Duxes Business Consulting, based in Shanghai, China , and to be held at the Crown Plaza Beijing Hotel, will examine various platforms for vendor leasing, present successful models and provide the outlook for such programs. Chinese government officials are slated to cover the tax laws, regulatory oversight and government supervision already in place to govern leasing and lending practices.
Fales says the national Chinese leasing law that was expected to be enacted in 2007 was delayed, he believes, in part because of the country’s focus on the Olympics, but that leasing is becoming more accepted due to the increasing number of western enterprises that are introducing this financing concept.
For example, other scheduled speakers at this month’s summit will represent Siemens Finance and Leasing Ltd, GE Commercial Finance, DeLage Landen Financial Services, and Hitachi Capital.
Policies and laws will be covered by senior officials from the Ministry of Commerce of the People’s Republic of China and the China Banking Regulatory Committee.
ABOUT THE ALTA GROUP
The Alta Group, established in 1992, provides a broad array of strategic consulting and advisory services, including risk management, merger and acquisition work and dispute resolution services for companies in the global equipment leasing and asset finance industries. Its clients include manufacturers, banks, and independent lessors. The Alta team is made up of more than 35 international consultants exclusively focused on the asset finance business, including former CEOs, company founders and industry thought leaders who are active in their areas of expertise. The Alta Group supports clients in North America, Latin America, Western, Central and Eastern Europe, Asia, the Middle East and Australia. For more information, visit www.thealtagroup.com