The term vendor leasing refers to any programme in which an equipment manufacturer, distributor, dealer or makes use of leasing as a means of selling its products. Vendor leasing, sometimes called “Sales aid Leasing” can be divided into two forms:
i. Captive lessors – is when the manufacturer/dealer decides to establish a wholly –owned subsidiary to offer lease finance directly to customer
ii. Third-party lessor – is when the lease is handled by an independent leasing company.
Third party lease Vendor leasing as a market development strategy, can maintain as well as strengthen a company’s relationship with its customers. Some companies in Europe and in USA have used vendor leasing programme successfully as a market development strategy
WHAT ARE THE BENEFITS OF VENDOR LEASING
To the vendor (seller of equipment);
i. Increased sales volumes
ii. New source of revenue from markets which they would otherwise not have targetted
iii. Improved brand equity and market presence
iv. Increased market share
To the Lessor (owner of asset e.g. financial institutions);
i. Boost in consumer lending
ii. Increase in revenues
iii. Opportunity to cross sell other banking products to retail customers
iv. Data gathering on potential clients using information gathered by MFC over a period of time
To the Insurance Companies (they provides cover for the asset);
i. Increase revenue
ii. Opportunity to bundle other insurance products
iii. Claims containment due to utilisation of certified maintenance workshops.
To the Lessee (user of an asset) – Easy and convenient access to desired assets
Increase your product offering, start vendor leasing today for enhanced profitability. Contact the experts and learn from the best. Visit the Secretariat or call 08023176691, 08023179048, info@elannigeria.org for further engagements