What can a broker do for you the Lessor?
- A lease broker is a "middleman". His or her function is to -
- Structure the lease to meet your needs
- Get you the best rate
- Put Your credit story together
- Sell the credit to a funder who becomes the lessor
- Facilitate the documentation for both You, the vendor and the lessor
- Ensure everyone is happy - especially You!
Background on Brokers in Canada
There was a time - when there was "nary" a broker around. Then in the late 70's and early 80's the big finance and leasing companies went through major changes - the long and short of which was to throw many excellent people on to their own resources. Predominantly sales oriented they did what they knew best - they convinced businesses to lease and suppliers to use leasing as a tool to sell product. Meanwhile many (certainly not all) of the new breed of leasing Cos (often subsidiaries of banks) were so busy dealing with their structures, policies and bank processes that they did not have the time or personnel to really market themselves on the street. They came to depend on their former employees - now operating as "brokers" to find them business. The rest is history. Even although we now have a host of excellent creative leasing Cos the broker is still very much alive and performing a vital service.
Advantage in dealing with a broker?
Some brokers are simply individuals - the better known ones operate as Companies and have support staff. Many brokers work with suppliers to facilitate funding for their customers. The better ones have the skill and the time to find a funding lessor for the customer at competitive rates thus allowing the supplier to concentrate on product.
Funding lessors are for the most part tied in with banks, or other financial institutions or major manufacturers with surplus funds. Run by humans (wow!) they have their likes and dislikes when it comes to granting credit. These develop as credit policies which reflect tastes for certain types of equipment and not others, terms they will grant on one type of equipment and not others, certain types of business they will not lease to and so on.
Brokers generally are folks who have been in the industry as long if not longer than the staff in the funding lessors! This gives them a depth of experience. More importantly they make it their business to know what each funding lessor's appetite is.