Product Details

by Vernon E. Gerety, Ph.D.
Fall 2001 issue

Speed and efficiency have always been key components to the success of the leasing industry. However, profitability in leasing is predicated not only on faster but also better decisions.The landscape of leasing is littered with the casualties of those firms that could say yes quickly but could not accurately rate the risk. Surprisingly, an often-ignored major risk for leasing companies is the lessee that is already on the books.The financial health of a business changes dramatically over the life of the typical leasing relationship; however, it seems to take an economic slowdown to raise a lessor's awareness of the importance of tracking the lessee's financial health after the deal has been booked.