Beat the Credit Crunch

Credit Crunch is not the new breakfast cereal for economists. The phrase credit crunch has become somewhat of a "buzz" word. The financial sector adopting the term, but also inheriting the harsh effects. The predictions for the financial climate foresee the crunch to tighten further.This is why it is vital to gain an understanding on how it will effect your business.

What is a Credit Crunch?
A credit crunch is caused when their is a shortage of available credit in the banking sector. Credit is just another commodity as say oil or wheat. If there is a shortage, the price of the commodity will rise, and the terms offered will be harsher. This is simply what has happen in the finance sector,credit availability, and terms have changed, and we have to adapt to the new conditions.

How will the credit crunch effect suppliers ?  
Customers who would normally just contact their bank manager are now finding that their overdrafts are being reduced or called in, and loans  for equipment are much harder to acquire. Coupled with the effect that the rates offered by the banking sector are increasing, and debentures and guarantees are rapidly becoming the norm. The days of easy credit has gone for the forseable future.

How to beat the credit crunch.
As the credit crunch bites, suppliers who do not show to customers what they can fully offer, are simply not doing themselves justice. Put it another way, the pie is shrinking as  your customers experience the tightening of their business, by using leasing, you can win a bigger share of the shrinking pie. That is why Oak has launched Oaklease Direct, which is a lease rate comparison site to help both suppliers and customers through the credit crunch.

You would never fail to present your equipment other than in its best light. So why don't suppliers and manufacturers have a leasing page on their website? With the inclusion of such a page within your website, it would fully promote the availability of leasing. After all, we both know that leasing  is the catalyst for ensuring that closed deal, and successful profit margin!

In this present financial climate, customers will simply assume that the supplier does not offer a lease solution, and go to someone that does. Unless you clearly state on day one that leasing is available on your equipment, and that your website also reinforces this, the risk of losing the deal is higher now than ever before to someone does.

How will the credit crunch effect customers? 
Customers are experiencing the tightening of credit lines, the increase in fees charged by banks, and more security being asked to support any new loans or overdrafts.  But they still need to acquire new equipment to grow and become more profitable.

 Leasing helps them since, once the lease has commenced, it cannot be taken away or called in, unlike an overdraft, it is 100% tax allowable, and also keeps the bank overdraft for unforeseen expenditure or if one of your customers goes down owing you money.

At Oak Leasing, we do not use credit scoring, but take a comprehensive and sympathetic look to see how we can structure an acceptance for you.
 
For up-to date information, just go the the Oakblog.

Oak Leasing is dedicated to help both you the suppliers, and you the customers, so that both emerge from the credit crunch, stronger and more profitable.