According to the Equipment Leasing and Finance Foundation (ELFF) seven out of ten businesses use at least one form of financing to acquire equipment. Essentially, 62 cents of every dollar spent on equipment is financed, totaling 922 billion USD in 2015. Leasing equipment is; and remains, an essential component of the worldwide economy, this is especially true for small and medium sized businesses. No matter the industry, businesses have to lease equipment in-order-to operate in their field. Leasing makes acquiring expensive equipment a possibility through payment plans and low upfront cost for the business.
In the competitive, trillion dollar leasing market; success and stability rely on developing new ways to generate revenue. This is where Cloud application software comes in: “Cloud Applications allow these businesses to quickly ramp up their operations and to accommodate all types and sizes of leasing portfolios”. In contrast with today’s trends, lessors need to have information systems that can handle increasing demands while controlling costs. For example, traditional leasing software’s must be purchased, installed, and maintained, whereas Cloud software is “leased” for minimal monthly fee.
This expansion of Cloud technology is going to have tremendous effects on businesses of all sizes. Essentially, Cloud technology levels the playing field between large-scale businesses and small-to-mid sized businesses. Cloud technology holds a large impact on leasing operations as a whole; Cloud technology will lower costs for lessors, it will also automate credit and collateral evaluation process, and Cloud technology simplifies the lease generation process. Furthermore, Cloud technology gives promise for the most cost-efficient and manageable to manage leasing transaction volume, manage lease portfolios, and help lessors bring new innovative products to the market.
This new development of Cloud technology comes with a price; Cloud software levels the playing field between large and small businesses. But it widens the gap between the person financing and the lessor. Additionally, some companies may not be able to afford the software because it is another payment that has to be made. In conclusion, the development of Cloud software for is the going to lay the foundation for the next 10 years of financing. The technology gives way to more opportunities then it closes.
“Get a new lease of growth with cloud technology.”Business Insider India. Business Insider India. 30 March 2016. 30 March 2016.