15 Critical Success Factors for Your Equipment Leasing Program
Optimize fleet, IT, and equipment leasing with our best practices
Use proven strategies to get more out of leasing
- Standardizing lease versus buy analysis
- Proactively managing end of term
- Defining corporate policies and controls
- Building a system of record
- Competitively sourcing finance terms
Learn how to save millions with equipment leasing critical success factors
Equipment leasing, when 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 the equipment lease lifecycle is inherently challenging to manage. That’s why companies choose lease lifecycle automation platforms to manage the process from end-to-end. The right software platform takes out the cost and risk of staying compliant so you can focus on the cash flow benefits of leasing.
Optimize these areas to get more out of your leasing program:
For over a decade, LeaseAccelerator has helped some of the world’s largest companies get the most out of highly-decentralized, complex 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 best practices and critical success factors.
Cummins Equipment Lease Management
Reduced Cost of Equipment Leases – Through the automated RFP process, over 73 competitive sourcing events have been completed in 26 countries. The new competitive model yields with an average cost of savings 8% per lease.
Better Lease Portfolio Management – Evergreen payments as a percentage of total annual payments (excluding termination fees) dropped from 18 percent at program inception to an average of 8.5 percent in subsequent years. The “unplanned/unintended” portion of spend dropped by more than half.
Ready for New Lease Accounting Standard – Cummins has also removed the uncertainty of transitioning to the new lease accounting standard. The software will make the appropriate calculations for the current standard and the new standard, enabling Cummins to generate parallel reporting.