Articles

Introduction: A Changing Landscape for Lessors
Leasing has become a balancing act. Balancing across managing risk, customer experience, organizational profitability, and regulatory compliance. Regulations have become more stringent and complex over time. IFRS 16 and ASC 842 are examples of compliance regulations. Globally, the trend is moving towards automated regulatory filing and real-time compliance.

Introduction

Operating leases have been a vital component of equipment and vehicle leasing. Organizations may require access to specialized assets for specific projects or assignments. Lessees have the option of procuring them on an operating lease. They do not incur capital expenditure or the complexities of procurement. The lessors gain by generating income while the asset is on lease and finding another lessee once it is returned.

Introduction: A New Era for Lease Management

Lessors have historically been slow in adopting new technologies. The rapid development of new technologies is enabling lessors to adopt these digitization tools. Lessors need to rethink their operations to differentiate what they can offer to their customers with digitization.

Lessors have been subject to increased scrutiny since the collapse of Enron and WorldCom at the turn of this century. Additionally, changes to lease accounting rules by US GAAP and IFRS have tightened regulations.

Manufacturers manage their business to conserve available cash. It is not feasible for them to make capital investments to support changes in their customer demands. To achieve their goals, they require innovative solutions to procure equipment.

Users want to use heavy and expensive plant and machinery without taking ownership. This is called Equipment as a Service (EaaS). Users or customers need to productively use the equipment without incurring the capital expenditure; they are obligated to pay for the periodic rent. EaaS enables lessees to use the latest

Within equipment and vehicle finance, rental has insidiously carved out for itself a niche distinct from leasing or lending, but no less vital to the fulfillment of business needs that change by the day, by season, or by assignment. Rental capacity, as it operates in commercial communities, is an operating strategy for asset owners to maximize utilization

Opening a restaurant is the most exciting, but it is a capital-hungry business you could undertake. From finding the perfect location to creating your menu, there are a tremendous number of details….

Risk does not necessarily translate into giant catastrophes or sudden dips. Sometimes it is insidious: a delinquent lessee missing insurance renewal payment…

Understand ASC 842 & IFRS 16 changes for lessors. Learn lease classifications,compliance tips, and how software ensures accuracy in financial reporting