Navigating the complexity of the leasing process can be challenging, but using a specialist leasing company (the lessor) can help simplify the process and make it more manageable. Here are some ways in which a specialist leasing company can help:
1. Knowledge of Multiple Industries
A specialist leasing company has extensive knowledge and expertise of the finance and technology/equipment industries, as well as the funders and equipment vendors that operate within them. They can provide valuable advice and guidance to lessees, helping them to navigate the complex leasing process from a legal and accounting standpoint and allow businesses to make informed strategic commercial decisions.F
2. Access to Multiple Lenders
A specialist leasing company typically has relationships with multiple lenders, giving lessees access to a wide range of funding options. This can help lessees find the best terms and rates for their needs, while also simplifying the comparison process.
3. Fund a Wide Range of Assets
Specialist leasing companies are not tied to any particular equipment, therefore can offer diverse leasing options for a wide range of equipment and assets. For instance, a leasing company can provide leasing solutions for IT equipment, office equipment, medical equipment, construction equipment, vehicles, and more. They can also offer flexible lease structures that are customised to meet the specific needs of each lessee, and the useful life of the equipment within the organisation.
4. Independence from Equipment Vendors
By being independent, a leasing specialist can also provide unbiased advice and support to lessees, helping them select the equipment that best fits their needs and budget, without the fear of being pushed towards specific equipment vendors or brand manufacturers.
Therefore, over time if there is a need to change brands or types of equipment, a lessor will not have a vested or divergent view on what best fits the need of a client and the economics required.
5. Simplified Application Process
A specialist leasing company can help simplify the application process for lessees. They can provide guidance on the required financial information and documents, help lessees complete the application, and work with the lender to ensure a smooth approval process.
Specialist leasing companies are also able to negotiate a consolidated Lease Facility Agreement so that any additional asset purchases can simply be added with minimal administration.
6. Asset Management Support
A specialist leasing company can also help manage leased assets, providing support for maintenance and repairs, tracking lease agreements and end-of-lease considerations, as well as ensuring that leased assets are properly managed throughout the asset lifecycle of the lease term.
7. Accounting Support
A specialist leasing company can help lessees understand the implications of IFRS 16 and ensure compliance with the lease accounting standard. They can provide expert guidance on how to calculate lease liabilities and right-of-use assets, and help lessees navigate the various accounting complexities involved in lease agreements. A specialist leasing company can also provide reporting software to help lessees streamline their accounting processes and ensure accurate financial reporting.
Is Leasing Right for Your Business?
Deciding whether leasing is right for your company can be a complex process in itself. At Quadrent, we have a long history of making the complex world of leasing simpler.
To help you figure out if leasing is the correct choice for your business, we’ve created an ebook with everything you need to navigate the leasing world. The ebook includes a detailed comparison of the benefits of leasing versus buying and more information on your leasing options. Download the ebook to learn more.
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