15 Equipment Leasing Critical Success Factors
Optimize Your Fleet, IT and Equipment Lease Portfolio with our Industry Best Practices
Learn the Equipment Leasing Critical Success Factors
- Standardizing lease versus buy analysis
- Proactively managing end-of-term
- Defining corporate policies and controls
- Building a system of record
- Competitively sourcing finance terms
Take a Strategic Approach to Your Equipment Leasing:
- Investing in equipment leasing talent and expertise
- Arming stakeholders with data and insights
- Defining and tracking Key Performance Indicators
- Gaining sharing savings with business units
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Learn How to Save Millions with Equipment Leasing Critical Success Factors
Turn Leasing into a Competitive Advantage for Your Business
Equipment leasing, if managed effectively, can offer a number of strategic financial and competitive benefits to your business. Leasing enables better use of cash flow and offers more budget flexibility. Additionally, leasing can provide a competitive advantage through faster refresh of technology. Arming your employees with the latest IT, material handling or manufacturing technologies can provide a productivity boost.
But equipment leasing programs are inherently challenging to manage. Companies lease a wide range of equipment from the photocopiers and furniture at headquarters to the servers and networking gear in your data center. The assets are used by a wide variety of business units from logistics and operations to facilities and corporate IT. The highly decentralized nature of equipment leasing programs leads to decisions and negotiations being managed by hundreds if not thousands of people around the world.
Some types of equipment such as corporate cars, rail cars and executive jets are highly mobile, which creates challenges with tracking the assets for insurance, tax or end-of-term notification purposes. Other types of equipment such as laptops and automobiles are easily lost, damaged or stolen, leading to mid-term partial buyout scenarios.
With the introduction of the new lease accounting standards there is now significant compliance risk associated with managing your equipment leasing program as well. Lease assets and liabilities will each soon have their own dedicated line on the balance sheet. The result will be a lot more scrutiny and questions about leasing programs from external auditors, board members and company shareholders.
Over the past 10 years, LeaseAccelerator has worked with some of the world’s largest companies to optimize highly-decentralized, complex equipment leasing programs. During our engagements we have identified a set of 15 critical success factors that best-in-class companies use to manage their equipment leasing program. Some of these critical factors start before the lease is even executed during the sourcing and contracting phase, while others relate to the end-of-term such as lessor notification and reverse logistics. In the pages that follow we will share our recommendations on equipment leasing critical success factors and best practices.