Sunday, September 1, 2024

The True Gift of Leasing

Many equipment manufacturers, distributors, and resellers believe that the major benefit of working with a leasing company is to provide their customers a financing alternative to outright purchase. There is no doubt that offering a lease alternative with every sale proposal increases the vendor’s probability of closing the sale. Vendors know that it is easier for a customer to obtain approval from their management for a low monthly payment Vs a large capital outlay for their equipment acquisitions. However, this is not the true gift of leasing.

The true gift of leasing is the "account control" that occurs long after the equipment has been paid for. Capital Resources maintains complete control of the leasing process from start to finish. As a result, the customer interfaces only with one source and the vendor, through Capital Resources, controls the account. By working with Capital Resources our vendors not only get paid immediately, but they also lock in future revenues and lock out their competition for the term of the lease. By having their customers lease their equipment through Capital Resources, our vendors are able to guarantee themselves any upgrade or replacement business.

Furthermore, vendors that provide supplies to support their products are able to create a virtual supply contract commensurate with the term of the lease. When our vendors’ customers lease their equipment instead of buying it, our vendors simply concentrate on servicing their customers during the term of the lease. Once a lease commences, our vendors don’t have to fight with their competition day after day in order to maintain their customer base.

If you are a hard-nosed equipment vendor that likes to fight with your competition on every transaction – leasing may not be for you. On the other hand, if you are an equipment vendor that prefers to make your life easier by using account control strategies and tactics that maximize your profits while providing outstanding services to your customers – leasing is the way to go.

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