Enterprise Lease Accounting for Manufacturers

Leasing is a popular strategy for many manufacturing companies. Leaders in the Aerospace, Automotive, Steel, Chemicals and other Industrial Manufacturing segments use leasing to finance the forklifts, trucks, IT and manufacturing equipment needed to run their business. Leasing enables you to acquire the critical equipment needed to grow your business while improving Free Cash Flow and lowering Total Cost of Ownership. But equipment leasing is complex. Headquarters teams need to make specialized accounting and tax considerations. And stakeholders around the world need to follow unique procurement and asset management processes.  With our Enterprise Lease Accounting software you can automate the sourcing, accounting and performance management of all your leases around the world.

Industrial Manufacturing

Upgrade Equipment Faster

Does your company have a consistent process to upgrade your equipment at regular intervals?  If not, you may be falling behind the competition and missing big productivity gains. Leasing rather than buying equipment enables you to refresh technology faster. Imagine getting new forklifts for your warehouse or servers for your data center every three years. Our Equipment Lease Management software will help you monitor all your leases coming to end of term so you can proactively return and refresh your equipment.

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Industrial Manufacturing

Avoid Investment in Depreciating Assets

Why tie up capital in equipment that depreciates in as little as three, five or ten years?  Leasing equipment (rather than buying it) enables you to preserve capital so you can invest it at the right time in R&D or a strategic acquisition. But equipment leasing can be complex. You need to track tens of thousands of leased assets across hundreds of locations around the world ensuring that each piece of equipment is returned on time and reported accurately on your books. LeaseAccelerator enables you to scale your equipment leasing program with software to automate the sourcing, tracking and accounting for all your assets.

Industrial Manufaturing

Align Expenses with Revenues

Are you planning major new product introductions in the next few years?  If so, investing upfront capital to purchase new equipment may be a risky bet in these times of economic uncertainty. Leasing equipment enables you to better align expenses with your future revenues by spreading payments across a multi-year period. Of course, the strategy only works if you can manage the complexities of leasing such as unique procurement, accounting and asset management processes.  LeaseAccelerator can enable you to lease equipment for new product introductions without becoming overwhelmed with administrative burdens.

Real World Savings for Manufacturing Companies

Examples from our Fortune 500 Customers.

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Savings of $2.3M in Year One

A leading manufacturing company saved $2.3M in the first year after introducing three best practices to its equipment leasing program. The three best practices were competitive bidding for financing terms; consistent lease versus buy analysis, and proactive end-of-term management. The savings represents 12% of its IT equipment costs.

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50% Reduction in Evergreen Fees

A leading industrial manufacturing company reduced its unplanned and unintended evergreen payments by 50%. By centralizing all equipment leases into a single database and gaining visibility to those past the end of term. The company could triage the largest and oldest leases. Evergreen payments as a percentage of total leasing costs dropped over 10%.

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8% Savings in Sourcing Leases

A leading industrial manufacturing company was able to reduce the cost of new equipment leases by an average of 8%. For each new piece of equipment an RFP is submitted to multiple different leasing companies. The result is more competition for the best financing rates and contract terms. So far over 75 competitive sourcing events have been held in 26 different countries around the world.

Some of Our Industrial Manufacturing Clients

Industrial Manufacturing Case Studies

Dell Supercomputer Lease

Dell Supercomputer Equipment Lease via a Competitive Marketplace

Material Handling Equipment Lease

Material Handling Equipment Lease from Multiple Vendors

Avaya PBX Phone System Lease

Avaya PBX Phone System Lease via Competitive Marketplace

Calculate Your ROI from Better Enterprise Lease Management

Learn More about Enterprise Lease Accounting

White Papers, Handbooks and Research Studies

PWC Equipment Leasing White Paper

PwC Equipment Leasing White Paper

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Authored by PWC, this white paper explains the complex world of equipment leasing including the key organizational, process and systems challenges associated with managing assets such as airplanes, medical devices and construction equipment to furniture, laptops and printers. Equipment Lease Management Platforms (ELMP) can not only help you comply with the New Lease Accounting Standards but can lead to significant operational efficiency as well.

Real Estate versus Equipment Leasing eBook

Real Estate and Equipment Leases eBook

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There are some similarities between real estate and equipment leases. Both have been neglected and under-funded at most organizations. There has been little investment in the people, systems and processes to support real estate and equipment leases.

15 Critical Success Factors for Your Equipment Leasing Program

Equipment Leasing Critical Success Factors eBook

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Learn the 15 Critical Success Factors for Equipment Leasing. Learn how to standardize your lease versus buy analysis; how to competitively source financing; and proactively manage your end of term. By applying these industry best practices you can save millions.

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