Make Sure You Choose the Right Leasing Partner!
Performance Capital believes that our relationship
with our vendors and their customers is our most valuable
asset. Because of this belief, we were shocked to learn
from some of our new vendors how their old leasing companies
were treating their customers. These leasing companies
were nailing their customers with costly fees, unreasonable
return provisions, biased end of term purchase options, and
inflated fair market evaluations. Our experience indicates
that this approach to business is very short sighted, and
does not encourage long term customer relationships and profitable
repeat business for our vendors.
Your customers are your most important
asset. How you and your partners treat them will determine
how long they remain doing business with you. It is
painful enough to lose a customer to your competition because
of something you did, but it is downright torturous if the
loss was due to the actions of your leasing partner.
The following conclusions from recent studies
support the importance of treating your customers with respect:
- 68% of customers surveyed stopped buying from companies
because of the indifferent way they were treated.
- 10% - 30% of customers will be lost because of poor customer
- It is 6-7 times more expensive to gain a new customer
than to sell to a current one Unfortunately, too many leasing
companies use a low price strategy to attract inexperienced
First, they offer below market lease rates
to capture as much of the vendor's business as possible.
Then, in order to make a profit, they increase their yields
to above market rates;?>by charging the vendor's customers additional
fees throughout the term of the lease. Many of these
fees are systematically woven into the lessor's lease agreement
and they are overlooked by the vendor and the lessee until
it is too late to do anything about them. Again, hammering
the lessee with these additional fees is not conducive
to building long term customer relationships and can be very
costly for equipment vendors in terms of lost repeat business.
Experienced equipment vendors know that they
should consider more than just a leasing company's lease rates
when selecting a leasing partner. Low lease rates do
not necessarily equate to high ethics, service, and satisfaction.In
2003, like the past twenty years, you and your customers will
continue to be Performance Capital's number one priority.
We will continue to be a professional, responsive, and competitive
provider of financing services. Our agreements and business
practices will remain fair and straightforward.
Performance Capital will not jeopardize your
relationship with your customers by charging them hidden fees
or inflated end of term fair market valuations. Our
goal is to ensure that your customers return to you time and