Overview of Business Operation
Asia Sermkij Leasing Public Company Limited (the çCompanyé) was established in Year 1984 by Bangkok Bank Public Company Limited Group to operate hire purchase business for all types of automobiles in the form of new car financing to its customers in Bangkok and metropolitan area. Subsequently the Company has expanded its business into used car hire purchase, personal loan and floor plan financing as well as other services such as auto registration, tax renewal and insurance services. Currently, the Company operates 3 branches in Rayong, Samutsakorn and in Phitsanulok provinces. The Company has 1 subsidiary, namely Bangkok Grand Pacific Lease Public Company Limited (the çSubsidiaryé), which was previously a major shareholder, holding 99.99 percent shares, of the Company prior to the restructuring of the group company in May 2004. Subsequently when the Company planned to be listed on the Stock Exchange of Thailand, the shareholders of Bangkok Grand Pacific Lease Public Company Limited decided to reorganize the shareholding structure by having direct shareholding in the Company and arranging the Bangkok Grand Pacific Lease Public Company Limited to become a subsidiary of the Company.
Structure and Oparation of the Group Company
Asia Sermkij Leasing Public company Limited
Automoble hire purchase
Machinery and vehlcle leasing
Auto registration, tex nelaval
Insurance faclitation service
Bangkok Grand Paccific Lease Public Company Limited
Automoble hire purchase
Marchinery and vehicle hire purchase
Insurance facilitation service
Business Oparation in Each Product Line
Business operation of the group company can be classified into 4 main categories, i.e. 1) Automobile hire purchase 2) Machinery and vehicle leasing / hire purchase 3)Domestic and international factoring and 4) Other services including personal loan &floor plan financing, facilitation service. Details are as follows:
Automobile Hire Purchase Business
The Company offers auto hire purchase, mainly to individual customers, for both new and used automobile, including passenger and commercial car, e.g. pickup, van, truck and taxi, etc. Majority of the Company's customers are in Bangkok and metropolitan area followed by customers in the central and eastern. The Company is a founding member of Thai Hire Purchase Association which one of the Company's management is a director of such association. In addition, the Company is a member of the National Credit Bureau Co., Ltd.
Machinery and Vehicle Leasing / Hire Purchase Business
The Subsidiary has commenced its leasing and hire purchase businesses since Year 1989 primarily to corporate customers. The leasing credit includes both financial lease and operating lease. The majority of the business operators utilizing services of the Subsidiary are situated in Bangkok and metropolitan area. The Subsidiary focuses on providing service to small and medium size enterprises in industries with growth and profitability potential such as Electrical Products, Vehicles and Parts, and Services. Assets under leasing and hire purchase agreement include machinery, equipment and vehicle. Leased and hirepurchased machinery of the Subsidiary consists of both new and used machines, particularly durable and liquid machinery whose technology does not change rapidly. Leased and hire-purchased vehicles include various types of both new and used vehicles, i.e. pickup, van and truck, etc. Currently the Subsidiary is a member of Thailand Leasing Association.
The Subsidiary has commenced its factoring business since Year 1999 mainly to the small and medium size corporate customers with good operating performance, strong financial status and repayment ability in the industries with growth potential and the need of short-term working capital. Target customers of the Subsidiary for factoring include business operators in Electrical Products, Chemicals and Plastics, and Packaging. Factoring service can be divided into 2 main areas including domestic factoring, a purchase of claiming rights to collect payment from receivables of products and service providers whose business counterparts (purchasers) are domestic entities, and international factoring, a purchase of claiming rights over trade receivables from the products and service providers whose business counterparts (purchasers) are situated overseas worldwide. International factoring can be further divided into 2 main categories as follows:
Import Factoring (Import Factoring)
The Subsidiary provides guarantee on the purchaserûs (importer) payment capability to the seller overseas. In case where the importer fails to make payment for goods and service after 90 days from the due date, the Subsidiary, as a guarantor, will be obliged to make payment on such products and services on behalf of the importer. The Subsidiary will then make recourse to the purchaser (importer) or its guarantor. In case of dispute between the purchaser and the seller, the Subsidiary will not be obliged for the payment until such dispute is resolved.
Export Factoring (Export Factoring)
The Subsidiary acts as intermediary in the coordination with the import factor of the oversea importer, business counterpart of the domestic exporter. It also verifies the status of the importer through import factor and provides debt guarantee to the exporter in case where the foreign importer fails to make payment for goods and service after 90 days from the due date. In lieu of the foreign importer, the import factor will make payment to the Subsidiary to be further forwarded to the exporter for its goods and services. Presently, the Subsidiary is a member of the Factors Chain International ('FCI').
Other Financing Businesses and Services
The Company provides other financing services such as personal loan and floor plan financing. Personal loan is a special service offered only to the good customers in need of cash with a credit line of Baht 50,000 per customer with short repayment term. The Company has commenced personal loan service since Year 2002.
In addition, the Company has commenced its floor plan financing service since late 2003 to auto dealers as a source of fund for auto purchasing for resale to enhance their liquidity. The Company provides such financial support on a selective basis only to auto dealers who referred hire purchase customers to the Company.
The Company and its subsidiary also provide other services to auto hire purchase customers including auto registration, tax renewal and insurance facilitation services, etc. in order to provide full range of service to the customers.