Phoenix Leasing Vendor Services - Why Hold Lease and Loans?

Acting as lessor or lender and holding your own leases and loans, rather than selling off your deals to a third party funding source, has many benefits. With Phoenix Leasing Vendor Services managing the back office paperwork you can achieve those benefits at far less cost than if you devoted your own staff and infrastructure to portfolio management.

You can realize increased profitability by earning financing income from your sales.
You can control and protect your customers from the competition. As lessor or lender you maintain a legal interest, a presence and a binding relationship with your customer that is difficult for a competitor to unwind.
As the lessor or lender with a master contract in place, you are the preferred vendor when a customer considers fulfilling additional requirements for equipment. You can use your relationship to build repeat business and to roll out new product offerings to current customers. As the financing source, you are the “sole supplier” when a customer needs to negotiate upgrades, add-ons, trade-ins, buyouts or extensions. As the vendor that originally provided the financing you will be one of the first parties to know and therefore participate in the new sales process. You, and not an outside bank or leasing company, retain control.
You can influence cash flow by selectively selling transactions in your lease and loan portfolio, on a periodic basis and at your discretion. Being lessor or lender has other financial advantages as well. Your lease and loan portfolio will provide a recurring stream of revenue; outsourcing your portfolio servicing can maximize profit by reducing operational costs. With certain types of leases you may realize tax benefits that will enhance the profitability of your overall enterprise.
If you choose, you can retain 100% ownership of the equipment at the end of a lease. Most vendor programs financed by third parties take this away from the vendor, as there may be a significant upside to owning the asset. Don’t outsource the profitability, just the service.
By performing the dual roles of vendor and lessor or lender, you are leveraging your customer relationship to provide incremental revenue and protect your market share now and in the future.