Despite its advantages, lease financing is often overlooked by manufacturers as a tool for increasing sales. The integration of lease financing with equipment sales is a highly effective method for achieving the sustained growth and long-term profitability that manufacturers are seeking. Clearly, leasing provides the funds necessary for equipment acquisition. Not as immediately apparent, however is that information gleaned from a lease portfolio can provide invaluable marketing data regarding customer equipment needs and buying history. There are many ways to accomplish the commercial objectives that an equipment financing product provides. The accounting treatments can be remarkably different, however. Some of the options to consider from both a commercial and an accounting perspective are discussed, including: captive financing, vendor program, joint ventures and other arrangements.
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