Our customers are too big for leasing!!

The leading European equipment leasing Blog
Posted on January 01, 2018 | , , ,

Our customers are too big for leasing, they are a large PLC!

How often have we heard that line over the last 30- 40 years? Or we only deal with large PLC’s, and they do not need leasing, they are cash rich!  That is so, so true. The reason they do not perhaps need leasing is the fact that suppliers are giving them 90 – 120 days credit on a rolling basis

In truth, the suppliers are funding their customers for their own equipment, as Baldrick would say, “I have a cunning plan!!!”

It appears from a recent survey this year,  47% of SME’s say that their customers do not pay on the agreed terms, the amount outstanding is an amazing  £26.3 billion. The survey goes a stage further, 29% of SME’s have to extend their bank overdrafts or the directors are forced to reduce their salary to keep to ensure that their business has sufficient cash.

In light of recent events, perhaps suppliers of all equipment might consider saying to large firms, you have to lease the equipment, or cash on delivery. By utilising leasing and being paid perhaps within a maximum of say 48 hours, the saving on a supplier’s cash flow is immense, saving on worrying,  night after night , incalculable.

Many businesses have forgotten some of the slightly hidden benefits of using leasing, apart from  being the best sales tool in any sales persons’s box, it also seems apparently to aid a good night’s sleep!!