The British are well known that we talk about the weather. Here is today’s forecast. There is a very cold wind blowing across Iceland, with a deepening Atlantic depression moving in an easterly direction.
Any firm that uses equipment leasing as a sales aid to sell capital equipment is being hit by three factors.
Firstly that we are in a recession, and that margins are being cut to the bone, and that customers are postponing any buying decision to a later date. With the stock market plunging again this morning, you cannot blame them for that, confidence has been, and is being shot to pieces.
Secondly, funders are being hit by rising bad debt, and are therefore using tougher underwriting guidelines, and thirdly, many leasing companies have simply left the market place, leaving a huge funding gap for leasing.
And now coming back to the weather forcast,the phrase R&D has changed its meaning,from research and development to recession and not depression. Wednesdays move by the government has meant in real terms that we will go into a recession, and not a depression. That is very good news.
The key is that in a recession, it is crucial not to let any sales opportunity slip through your fingers. Leasing only works as a sales aid if the supplier is receiving full support from its leasing partner, and it becoming apparent to us that many funders are simply cherry picking the deals. This is not sales aid leasing. We at Oak, have sources of funding that will give you the opportunity of acceptances that other leasing companies will simply reject. You cannot risk losing any sales in this present climate.
I hope that when I next write, the tone will be more uplifting, all I can say is make every sale count, and if you are not receiving a good acceptance rate from your leasing company, it would be wise to look for a new leasing partner.
http://www.oaklease.co.uk/ The UK’s most popular leasing company website.