Focus on collections will help lessors in the downturn In the current economic climate, where cost-to-income ratios are under threat and efficiency measures are rapidly coming to the fore, technology is likely to play an ever-increasing role in leasing companies agendas. Ken Meaden, a manager at CHP Consulting, a lease software consultancy, told Leasing Life that, in response to the economic downturn, lessors are moving away from finding new business and towards a greater emphasis on relationship and collection activities.
Whereas some £3.1bn of broker business was introduced during 2006 (out of a total asset finance figure of £26.5bn) the figure is likely to reach £3.9bn in 2007 (out of a total of £27.8bn) some 23 per cent up over the previous year.
Andy Shuter, Frontlines director, told Leasing Life a franchised automotive dealer typically directs 55 percent of proposals to the manufacturers captive finance company, 25 percent to a second-tier prime lender and the remainder (20 percent) to a broker.
Broker Oracle launches aviation and marine finance arms Prestige vehicle broker Oracle Finance has formed an aviation and marine asset finance division with the aim of providing specialised funding for its existing customer base as well as for new clients.
Bluestone Leasing doubled the size of its sales force last year, largely on the back of growth in its Turnkey Solutions business Bluestone, which has 25 sales staff nationwide, currently has a Turnkey deal on its books for an £18.2m investment in a data centre for a client, its biggest deal to date