Articles

  Introduction The vehicle and equipment leasing industry is growing rapidly, driven by changes in government policies relating to lending by banks. Compliance remains a challenge with the introduction of accounting standards ASC 842 and IFRS 16. Manual processes are

There has been tremendous growth in vehicle and equipment leasing. Allied Market
Research reported the global equipment leasing market value as $1.2 trillion in 2022,
projected to reach $3.1 trillion by 2032, growing at a compound annual growth rate (CAGR)
of 9.7%. Asset rental finance makes high-value equipment and vehicles available to users
without capital outlay. The focus changes towards managing these assets efficiently.

Most businesses require equipment and vehicles to run their core operations. To procure these assets without incurring capital expenditure is a tool organizations adopt. Lessors are providing equipment and vehicles on lease programs to address this need.
Financial and regulatory compliance is increasing for both lessors and lessees. New accounting standards IFRS 16 and ASC 842, have made compliance mandatory regarding recognition on the balance sheet

The process of disbursements and payments, or payment processing, is the foundation of leasing. Payment processing his evolved from manual activities to sophisticated automation. This integrates data and systems in real time. This is diving accuracy, efficiency, and transparency.

Enhancing Efficiency: Streamlining Lease Administration Processes Lease administration is sometimes also called lease management. It covers the process from the inception of the lease through the lease lifecycle. Fromrecording the lease, billing, collecting dues, to termination, and return ofassets.Focusing on 

Operational challenges are increasing in the ever-evolving work of vehicle and equipment leasing. Compliance and automation in areas such as accounting for new standards IFRS 16 and ASC842, calculating and updating depreciation schedules, income, and payments require lessors to

Collections are a critical part of every leasing business. It starts with sending timely invoices to your customers. Spreadsheets can help with simple leases. Contract modifications are becoming more complex. Keeping them updated on spreadsheets is very difficult.

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.