Biz2Credit aims to revolutionize the $300 billion Indian funding market through online financing

With more than 11 lakh (1,100,000) users, 1,300 lenders, US based Biz2Credit, is all set to revolutionize the Indian funding market by making finance available to thousands of small and mid-sized companies looking for business loans on best terms.

Biz2Credit aims to revolutionize the $300 billion Indian funding market through online financing

Jun 05, 2016

With more than 11 lakh (1,100,000) users, 1,300 lenders, US based Biz2Credit, is all set to revolutionize the Indian funding market by making finance available to thousands of small and mid-sized companies looking for business loans on best terms.

Nidhi Bothra tells how India’s new leasing association came about

Leasing in India has been in existence for decades now and has seen its fortunes trough and peak. From the days when the leasing industry surged overnight to when it died out completely – and then revived from the ashes, the leasing industry in India has had its own story to tell. The Indian leasing industry was at its peak in the 1980 and 1990s before tax issues throttled leasing volumes.

Nidhi Bothra tells how India’s new leasing association came about

Jun 06, 2016

Leasing in India has been in existence for decades now and has seen its fortunes trough and peak. From the days when the leasing industry surged overnight to when it died out completely – and then revived from the ashes, the leasing industry in India has had its own story to tell. The Indian leasing industry was at its peak in the 1980 and 1990s before tax issues throttled leasing volumes.

News in brief

CDB Aviation in $3.3 billion Boeing deal

Apr 06, 2017

CDB Aviation Lease Finance and Boeing have announced an order for 30 737 MAX 8 airplanes, valued at $3.3 billion at current list prices.

CALC buys US aircraft recycling firm

Apr 06, 2017

Hong Kong-based Aircraft Recycling International (ARI) has bought Universal Asset Management, (UAM), one of the world’s leading global aviation services providers. UAM has nearly three decades of commercial and technical experience managing customers’ aviation assets, disassembling aircraft and supplying aftermarket components to the commercial aviation industry. It will be a wholly-owned US subsidiary of ARI, responsible for ARI’s aircraft recycling business overseas, and a part of its global disassembly and distribution platform. Together, ARI and UAM will provide global solutions for aging aircraft, in a move designed to consolidate the status of their parent company as a full value-chain aircraft solutions provider. ARI is a member company of China Aircraft Leasing Group Holdings (CALC). Christina Ng, deputy chief executive officer and chief operating officer of ARI, has been appointed as chairwoman of UAM, while Keri Wright and Shawn Kling will continue to lead UAM’s operations as chief executive officer and president respectively. UAM will retain its brand name and continue to operate with the same management team, and all staff will remain in place across all its business units. ARI says it plans to leverage UAM’s well-established global brand and track record of serving more than 1,000 customers in 150 countries to expand into overseas markets.In turn, UAM will leverage ARI’s growth capital, and draw upon CALC’s network and resources, to advance further growth of its portfolio. Ng said: “This brings together the strengths and expertise of both ARI and UAM to ensure a strategic business deployment that will capture huge potential in the mid- to late-life aircraft management industry, and will see aircraft completely managed through their full lifecycle, which will enhance the asset value of aircraft fleets. “While expanding our presence in global markets, ARI will further enhance our total aircraft solutions for aging aircraft, so as to cater to the specific needs of the Chinese market.” ARI is mainly engaged in asset management and total aircraft solutions relating to aging aircraft. It is currently constructing an aircraft recycling facility in Harbin, China. Fleet expansion CALC recently announced it has completed the deliveries of one Airbus A320 each to AirAsia Berhad and Thai AirAsia, bringing the lessor’s fleet size to 83 aircraft. The group is in the process of implementing an expansion plan to increase the size of its fleet to 173 by 2022. Its currently supplies 17 airlines, extending across Europe, Southeast Asia, Japan and the US. CALC revenues rose 58% to HK$2,448.1 million last year on the back of continued expansion of the aircraft leasing business and gains from the disposal of finance lease receivables. Net profit grew 67.9% to HK$638.4 million, while total assets rose 29% to HK$31 billion. The group maintained a 100% aircraft lease occupancy rate in 2016. Mike Poon, CEO of CALC, said: “In 2016, we took full advantage of the opportunities presented by the market and enhanced our position as a leading full value-chain aircraft solutions provider by proactively implementing our globalization strategy and fleet expansion plan. “Looking ahead, we see the demand for full value-chain aircraft solutions increasing as airline fleets continue to expand, age and retire. With the aircraft disassembly center to commence operations soon, we are well placed to deliver profitable growth and create excellent shareholder value in the future.”

Nissan offers EV round-trip car sharing

Apr 06, 2017

Nissan and the City of Yokohama in Japan have introduced a round-trip car-sharing service featuring the Nissan New Mobility Concept, an ultra-compact electric vehicle designed to minimise pollution. The service, called “Choimobi Yokohama”, enables users who register online to pick up and return cars in 14 locations around Yokohama Station. Cars can be reserved 30 minutes in advance and can be driven within the city. Pick-up/drop-off locations include well-known hotels and landmarks, and there are also free parking spaces in 12 locations. The vehicles are restricted from driving on expressways and highways with speed limits exceeding 60km/h. The service costs 250 yen per 15 minutes plus a 200 yen basic charge, with a maximum daily charge of 3,000 yen. Users need a Japanese driver’s license, a smartphone and a Japan-issued credit card. Registration is available on the Choimobi website and registrants are required to watch a video featuring operating instructions and information on driving safety before making a booking. Nissan and the City of Yokohama previously conducted a two-year trial of Japan’s first one-way car-sharing service using ultra-compact electric vehicles, starting in October 2013. The aim was to encourage low-emission transport options, improve the quality of transportation and promote tourism. In October 2015, the partnership began renting cars to local tour operators and businesses. The new round-trip service is meant to further promote ultra-compact mobility and build a sustainable business model through public-private co-operation. The service will also include guided tours around central Yokohama and long-term car leasing for businesses.

Tokyo Century in CIT acquisition

Apr 06, 2017

Tokyo Century Corporation (TC) has purchased the joint venture aircraft leasing business it owned with CIT Group. TC will acquire all the shares of TC-CIT Aviation Ireland (CAI) and TC-CIT Aviation US (CAU) currently held by CIT. Following the share purchase, the two companies will become wholly-owned subsidiaries of TC. TC has been the majority shareholder in the businesses since they were formed in 2014, holding 70% equity. TCAI and TCAU have invested approximately $1.5 billion in building a portfolio of 33 aircraft. As well as its aircraft leasing business, TC has an aircraft debt financing business and an aircraft parts financing and debt financing business, operated jointly with GA Telesis, an equity affiliate. TC is forecasting long-term growth in the aviation market and plans to continue focusing on developing its aircraft-related businesses. The balance of operating assets in aircraft financing currently totals approximately $2.5 billion, and TC aims to grow this to $3.5 billion. In addition to aircraft leasing, TC will focus on developing its engine leasing, aircraft parts financing and other businesses related to aircraft assets, including joint initiatives with alliance partners to accelerate growth.

Leasing expands in India’s SME market

Apr 06, 2017

Sumitomo Mitsui Banking Corporation (SMBC) is to team up with IFMR Capital to offer a range of leasing and financial services to companies in the agriculture and micro, small and medium sized enterprise (MSME) sectors in India. The two companies have signed a memorandum of understanding designed to help IFMR Capital to strengthen its capabilities. IFMR Capital is a non-banking finance company which was established in 2008. Lending guidelines established by the Reserve Bank of India dictate that banks extend a specified portion of their lending assets to sectors, such as agriculture and MSMEs, which they have classified as a priority.

BDO Leasing improves revenues in Philippines

Apr 06, 2017

BDO Leasing and Finance, one of the dominant leasing companies in the Philippines, posted a net income of P570 million in 2016, slightly higher than the P556 million the previous year, following growth in business volumes. Gross revenues increased by 10% to P2.9 billion as the company expanded its net lease and loan portfolio by 14% to P31 billion. The company is the leasing and financing subsidiary of BDO Unibank and provides direct leases, real estate leases, sale and leaseback arrangements as well as receivables factoring. It also provides operating leases through its wholly-owned subsidiary BDO Rental.

Thai leasing group drives Honda growth in Myanmar

Apr 06, 2017

Thai digital finance firm Group Lease has signed a new partnership with Honda NCX, the exclusive distributor of Honda motorcycles in Myanmar. The move is intended to significantly increase the sales of Group Lease’s financial services through a 100-strong dealer network spread throughout the country. Mitsuji Konoshita, chairman and CEO of Group Lease, said: “As a result of the new exclusive agreements, Group Lease will be the only finance company linked with Honda’s authorized dealers of new and second hand motorcycles across the whole of Myanmar. This will immensely boost our marketing and sales expansion.” Kaname Hashimoto, managing director of the partnership, called GL-AMMK, described Myanmar as an untapped, high growth market. Currently, Myanmar accounts for one million new motorcycle purchases annually, with Honda taking 10% market share. Hashimoto said: “Honda will be able to increase their market share to 60% at least within 10 years, as we have seen in other ASEAN countries.” GL-AMMK point-of-sale services have already been tested at 14 dealers, with all 103 dealerships expected to offer the service within six months. Group Lease CEO Mitsuji Konoshita said: “There are three factors which make us so confident on our business expansion in Myanmar. Firstly, the market is now expanding rapidly, and secondly Honda market share will increase sharply [because of] the quality of its motorcycles. Thirdly, our competitors have yet to expand into the region, since Myanmar is a place in which development has only happened very recently.”

KB Financial Group to launch in Laos

Apr 06, 2017

South Korean financial holding company KB Financial Group has obtained official approval from local authorities to operate in Laos, a year after its initial application, as part of its regional expansion strategy. The company has established KB Kolao Leasing, in partnership with Laos-based Kolao Group, which has interests in a diverse range of businesses including construction, banking, leisure, logistics, media, furniture, agriculture, car manufacturing and second-hand vehicle distribution. With Hyundai, Kia and Daehan cars in high demand, Kolao has a 50% share of the Lao domestic car market. KB Kolao Leasing will offer financial services for clients via the Indochina Bank network. KB Financial group chairman Yoon Jong Kyoo said: “KB Kolao Leasing is a co-operation between the KB Financial Group and Kolao Group, with the latter holding the title of the company with the highest number of car sales in Laos.” The move follows an announcement earlier this year that another Korean company, DGB Financial Group, had set up in Vientiane, the capital of Laos.

Boeing in Mongolian leasing deal

Apr 06, 2017

Mongolian Airlines has concluded a leasing agreement with Boeing with the assistance of Avolon Aerospace Leasing for two aircraft, which the national carrier is to lease for 12 years starting from 2019. MIAT had previously agreed to buy three aircraft from Boeing, with the first received in 2013, but it has shifted its strategy to leasing. The remaining two Boeing 737 MAX 8 aircraft are expected to arrive in Mongolia during the first half of 2019.