Leasing101

Our Training

Our online training is comprised of 12 PowerPoint presentations, 6 role playing scripts, a sample customer sales pitch book re: a comparison of buying to an operating and a finance lease alternative, several educational writings.  These files are available to the staff of any leasing company that subscribes.  For any educational institution they would be available for the staff and students.  Available means that all staff and students can read but not download the information as many times during the subscription period (one year – that is 24/7/365 (366 in leap years)). The PowerPoint files contain my audio presentation so you can read and listen or just read to reinforce the messages.

Getting Started for Lessors:

Getting Started for CFOs:

Getting Started for Business Schools:

POWER POINT W/ AUDIO

Introduction to leasing

  • Orientation for any new hire
  • Lists the products offered by a typical large leasing and finance company
  • Defines the products
  • Identifies what types of customers want each product

Why customers lease

  • Orientation for any new hire, especially new leasing sales staff
  • Describes the leasing and finance market
  • Lists why customers lease and how leasing meets customer needs in detail
  • Explains the IRS tax principles governing leases and the concept of tax shelter in leases
  • Introduces FASB Topic 842 accounting rules
  • Introduces the lease vs. buy decision

Glossary of terms

  • Orientation for any new hire, especially new sales staff
  • Defines industry terms
  • Defines key corporate finance terms like ROA, EPS, EBITDA, etc.
  • Defines terms from ASC topic 842 – the new lease accounting rules

Leasing Sales Under The Accounting and Tax Reform Changes

  • Very detailed and comprehensive
  • For all sales staff and management
  • Accounting and operations staff will also benefit
  • What’s in the Topic 842 lease accounting rules for lessees and lessors
  • What are the implications to lessees
  • The 2 big customer issues
  • What else to watch out for
  • Engaging the customer
  • Opportunities – New Rules/New Ideas!
  • Impact of the tax reform act of 2017

Lease structuring

  • For all sales staff, management and sales support/product development
  • The basics of structuring

Fleet finance alternatives

  • For all sales staff and management
  • Compares the product alternatives for financing commercial vehicles
  • Analyzes terms, asset usage flexibility, economics, tax and financial reporting issues
  • Displays the assets’ profiles
  • Comparative benefits displayed via a heat map

Products explained and consultative selling

  • For all sales staff, management and sales support/product development
  • Overview of lease accounting rules
  • Detailed explanation of lease structures that address customer needs
  • Understanding the customer and the decision maker
  • Probing for customer needs
  • Dealing with objections

Should I lease or buy

  • For all sales staff and management
  • Topic 842 capitalizes all leases making the lease versus buy analysis more complex
  • My “new approach” to the lease vs buy decision is really a lease versus lease analysis as the financial reporting impact of a properly structured lease always capitalizes at amounts less that the cost of the asset – the balance sheet and often P&L look better to investors
  • Shows that leasing is always best using proforma financial modeling of alternative loan and lease structures

ABC Trucking case study

  • For all sales staff, management and sales support/product development
  • A case study comparing borrowing to buy to leasing for a lessee customer
  • Uses comparative financial statement impact analysis to show the benefits of leasing
  • A new approach to selling leasing to customers – present the lease vs alternative funding options in a clear and concise way

Four lease product offering

  • For all sales staff, management and sales support/product development
  • In depth analysis of the products that best address lessees’ financial reporting and income tax needs

Pricing policy

  • How lessors calculate the rate they charge lessees – cost of funds, cost of credit, cost to process, spread (profit margin)
  • Pricing “science” vs. market reality
  • How lessors quote fixed and floating rate deals
  • True lease pricing – MISF yield vs ROA
  • True lease pricing variables

Lease analytics

  • The time value of money explained
  • Glossary of terms
  • Common lease analytical problems
  • Free Excel tools

PDF/POWERPOINT DOCUMENTS

Sample sales pitch books

Real estate synthetic lease proposal
Equipment lease proposal – synthetic finance lease vs loan

Sample Proposal letters

Synthetic lease
True lease

Documents

Disclaimer: These writings are in the public domain and I am not selling them. Instead, as a convenience for subscribers and to enhance the training experience, I am including a read only copy of the articles with the links to the Monitor and ELFA websites (both have published my articles).

Topic 842 lease accounting White Paper

  • For all sales staff and management
  • Accounting and operations staff will also benefit
  • Covers lessee and lessor impacts of the Topic 842nlease accounting rules

Article: The New Approach to Lease vs Buy

  • For all sales staff and management
  • Detailed article focusing on the CFO view of asset finance.
  • Explains how the capitalization of leases impacts the decision as to what alternative to choose to finance an asset acquisition
  • The focus is on comparing financial reporting results
  • Concludes that leasing is the best alternative BUT what type of lease?

CFO Chats – role playing

  • For all sales staff
  • Six customer calls on a CFO
  • Each chat covers a different common situation a leasing sales person may confront on a customer call.

Article – So you want to be a leasing sales person

  • For all sales staff and management
  • Outlines the things a leasing sales person must know to be successful

Article – Leasing as a Bank Product

  • For management, accounting/finance and marketing
  • Explains how the leasing product functions in a bank
  • How the leasing product works with relationship managers
  • Marketing strategies.

Article – Structuring Leases in a Challenging Interest Rate Environment

  • For management, treasury and product development
  • Reviews how the interest rate spike of the late seventies and early eighties impacted the industry
  • Changes in policies that resulted
  • Opportunities to take advantage of volatile rates by offering rate option products to customers
  • Let the customer take a view on rates – a competitive advantage? The competition may not offer the same.
  • How to create the different rate type products

Article – Where Have All My Profits Gone?

  • For management and accounting/treasury
  • Issues noted over the years where the sales organization thinks their deals were structured and priced well but the management accounting P&L results don’t show it.
  • Covers pricing, residual setting, tax benefits, management accounting, treasury and operating losses

Article – Increasing Profits Through an Additional Residual Pool

  • Strategy to win more FMV deals through managed residual risk taking

Article – Lease Analytics 101:  The Principal and Interest (P&I) Schedule

  • Basics of a P&I schedule – Excel and HP 12C

Article – Apples to Oranges: How to compare asset finance options

  • Putting 2 different asset finance options on a par when their asset and costs vary
  • Comparing return on assets, cost of capital and permanent cumulative benefits of positive timing differences
  • A must read for CFOs that make large asset finance decisions
  • Lessors will learn a hard-hitting concise method of selling the benefits of leasing vs borrowing to buy
  • A case study demonstrates the method of analysis and results

Article – WHY BUY RVI? – It’s About Financial Reporting

  • Lessors buy residual insurance to convert operating leases to direct finance leases
  • Understand how and why it works
  • Understand the issues and benefits
  • A case study demonstrates the method of analysis and results

OUR PACKAGE

$5,000 / 1 year subscription.   Includes unlimited viewing of all materials by your entire team – 24/7/365 (366 in leap years).

Lessors – Management and all staff can use the material.  Managers can use PowerPoints to run staff marketing and strategy meetings. Take advantage of new ideas.  Introduce new hires with the basic materials.

Business Schools – Create an “Asset Finance” course suitable for future bankers, lessors and CFOs.  Prepare them for real world business in finance.  Use the PowerPoints for weekly lectures.  Use the CFO Chats as class role playing sessions.  Use the writings as class reading and discussion items.