We Asked What Would Improve Leasing’s Image? You Answered: Us
Posted 07/17/06
“…encourage each and every employee to be up to date with our successes in serving America's businesses…” ~A poll respondent
In a recent issue of Forecasts, readers were asked in a quick poll What Would Help Enhance Leasing's Image the Most? Of the 43 respondents, most (33%) chose “a new tax incentive that could be passed along to customers.” The second most popular choice (28%) was a “more strongly-stated value proposition for the lease product.” “Lease negotiations growing more transparent to customers” was chosen by 23% of the respondents, and 14% of the poll takers chose “better processes and technology tie-ins with customer systems” as a way to improve the image of the industry. Just 2% selected “other.” But is it really tax incentives and a strong value proposition that will improve the image of equipment leasing? One reader notes, “The question is an important one for all of us to live with for a while. The issue I perceive is, to whom are we trying to improve their perception of leasing's image? The answer, today, may suggest somewhat diverse action steps.” Leasing’s customers are a diverse group including existing and prospective customers, accountants and CPA firms, FASB and the EITF, the overall “citizenry” including Congress and investors and lessors themselves. One Foundation supporter noted that customers are leery of stigmas that might be smeared on them and potential customers are not always sure whom to trust and are uncomfortable about creating potential front page headlines. (And, we’ve all read the headlines.) Customers' Accountants and CPA firms are still reeling from increased scrutiny of audit practices and are now uncomfortable with customized transactions. FASB and the EITF have some people pushing for various accounting "reform" changes while remaining sensitive to public and political pressure. And, let us not forget the American public, including members of Congress, who are mostly ignorant of accounting and leasing yet so outraged by white collar crime and wondering if they can trust corporation’s financials. As one poll respondent stated investors and lessors are making valiant efforts to wear their integrity on their proverbial sleeve, sensitive to misapplied criticism of rules and procedures which the Equipment Leasing Association, major investment brokerage firms, and accountants really know are not misleading the debt and equity investing players. However, ignoring what happened in recent years and assuming that the cliché “Time Shall Heal All Wounds” holding true is both naïve and unwise. Just as the ELA has pronounced, said a poll respondent, we would benefit when and if the leading accounting firms were to make more positive assurances about disclosures and investors adequate perceptions of financial strengths and weaknesses. The respondent also added, “Right now, there is too much silence, allowing those who wish to make radical changes, be the loudest voices heard. All of us in the leasing and financing industry are justifiably proud of the contributions to growth industries and all businesses seeking to survive, grow, and prosper. Employment and profits are the natural consequences of aiding businesses effective use of capital resources. “Therefore, perhaps the most important means of enhancing leasing's image is for all of us actively in this market to encourage each and every employee to be up to date with our successes in serving America's businesses, the magnitude of our contribution, and the importance of our continued serving of our American and global marketplaces. Now is not the time to be defensive when the criminals are the ones who abuse the rules, not the ones who steadfastly follow all the legal and accounting rules and procedures.” The Equipment Leasing and Finance Foundation and the association are working to provide lessors data and studies needed to support the benefits of leasing and the enormous contribution leasing makes to the US and global economies. We encourage you to read and share these studies with you employees in order to help turn the tide. Suggested reading includes the Annual State of the Industry Report and the Economic Contributions of the Equipment Lease Industry to the US Economy.
Sites of Reference:
http://www.leasefoundation.org/store/
http://elaonline.com/research/
CONTACT:
Lisa A. Levine, CAE
Equipment Leasing & Finance Foundation
Phone Number: 703-527-8655
Fax Number: 703-465-7488
E-mail: llevine@elamail.com
