LeaseAccelerator
The average Fortune 500 company leases several hundred million dollars of assets such as cars and vehicle fleets, computers and data center equipment, forklifts and material handling equipment. Most procurement departments aggressively negotiate the purchasing price for equipment, but don’t exercise the same rigor when it comes to financing leases. Instead, the capital for leases is sourced from either the financing arm of the equipment vendor or the house bank.
LeaseAccelerator’s Enterprise Lease Sourcing application enables procurement organizations to apply best practices such as supplier RFPs, competitive bidding, and contract standardization for the financing of equipment leases. By applying these sourcing best practices, companies can reduce their leasing costs by 6-8%.
First, the Sourcing application enables companies to compare the economics of purchasing versus leasing a particular asset. If a decision to lease is made, the Sourcing application automatically generates an RFP outlining the desired lease term, payment frequency, purchase, renewal, and return options.
The RFP can be distributed to a preferred list of capital sources or to several of the 500 financial institutions on our Global Lessor Network. The Sourcing application identifies potential lessors based on credit rating, geographic location, and type of equipment to be financed. Competing bids are automatically ranked and compared, enabling a quick decision-making process.
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In Their Own Words: LeaseAccelerator
LeaseAccelerator’s Enterprise Lease Sourcing application enables procurement organizations to apply best practices such as supplier RFPs, competitive bidding, and contract standardization for the financing of equipment leases. By applying these sourcing best practices, companies can reduce their leasing costs by 6-8%.
Lease vs Buy Analysis
LeaseAccelerator’s Sourcing application includes an automated approach to scaling and standardizing your lease versus buy process. The application enables your lease versus buy process to scale to thousands or tens of thousands of users, each of whom can submit requests for lease/purchase comparisons via email using a nonintimidating spreadsheet.
For each individual lease being evaluated, users specify a number of details about the equipment to be financed, the desired lease structure, the preferred end-of-term options, and the estimated payment frequency and amounts. These details are entered into an asset request form (ARF). An easy-to-use spreadsheet that doesn’t require an MBA to understand, the ARF simplifies the process for collecting data.
The output of the lease versus buy analysis is a side-by-side comparison of leasing and purchase options. Detailed reports include comparisons of net present value, federal/state/local taxes, as well as monthly/annual cash flow.
RFPs for Equipment Financing
LeaseAccelerator can automatically generate a leasing RFP to support the financing of IT, fleet, or other types of equipment. End users specify the asset type, lease structure, terms and conditions, documentation, and reconciliation requirements of the lease. A specific list of preferred leasing companies, such as those with which you have existing credit relationships, can be enumerated. Alternatively, LeaseAccelerator can automatically match the RFP to a set of commercial banks, vendor captives, or independent leasing companies on our Global Lessor Network. There is also an option to send RFPs to both preferred lessors and the broader community on our Global Lessor Network.
Competing bids will be solicited from the various leasing companies. LeaseAccelerator will automatically evaluate the bids received and rank them based on criteria such as present value, cash flow, and internal rate of return. Once a winning bid is selected, all leasing companies who participated in the RFP can be automatically notified of the decision.
Lessor Network
The Global Lessor Network is the largest marketplace for competitive equipment sourcing in the world. Over 500 commercial banks, vendor captive finance organizations, and independent leasing companies are active participants in capital sourcing.
The network includes leasing companies that support a wide range of ticket sizes (small, medium, large), asset types (material handling, data center, vehicle fleets), and geographies (Europe, Asia, North and South America) to support your current and future needs.
Standardized Leasing Contract
LeaseAccelerator’s Sourcing application includes the option to adopt a standardized leasing contract for equipment financing deals. This standardized contract reduces the risk for predatory leasing terms and unexpected challenges with end-of-term buyouts, returns, and renewals. Additionally, it reduces the time required for the legal negotiation of clauses such as use and maintenance, loss and damage, representation and warranties, inspection, and acceptance for each individual lease.
Developed by a prominent San Francisco law firm, the LeaseAccelerator standardized contract is accepted by all members of the Global Lessor Network. It includes a master lease agreement, schedules, and riders that standardize the contract language for over thirty commercial leasing terms.
Equipment Lease Sourcing