average of 50-100 basis points has been lost on margin, according
to Alain Vervaet, the CEO of ING Lease Holding.
Speaking at Leasing Life’s AFD conference, Vervaet went on to
say that the industry will need to gradually increase margins by
100 basis points in order to recover.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
“This is something you have to share with your vendor – there
will have to be new negotiations on the pricing side,” he
remarked.
He added that vendor relationships – which make up around 10
percent of ING Lease’s overall business – can become an important
distribution channel for leasing companies, but warned that it was
paramount for the correct agreements to be put into place.
Vervaet believes that vendors can play an integral part, so long
as the leasing company is ready to invest in the relationship.
“You need to do your homework and decide whether you want to
invest in a certain sector,” he said. “Do you want to concentrate
on a specific industry? You should only start talking to vendors
once you have agreed you can and are willing to commit
yourself.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
