June 2017   

Wheeler Business Consulting works with a variety of participants in the commercial equipment leasing and finance industry. I have a broad perspective of the industry through my clients (banks, independents, captives, service providers, investors, large and small organizations). The following are some of my observations in 2017.

Activity in the industry remains strong. Most participants in the industry are experiencing an uptick in business and some are seeing significant increases in activity (especially well-positioned independent participants with equipment expertise). The commodity markets (especially bank transactions) are extremely competitive and margin pressure continues as participants jockey for their fair share of quality assets. There is caution within the industry as political agendas (tax reform, health reform, and infrastructure expenditures) are being questioned, delayed, or possibly eliminated. The business community appears to be searching for optimism and justification to move forward with their capital expenditures. The slightest indication of progress on any part of a pro-growth or pro-business agenda will provide continued growth for the commercial equipment leasing and finance industry. 

The disparity between average and superior continues to widen.  Top producers are significantly outperforming their average competitors. Both vendors and end-users are requiring more from their financial partners and top producing originators and companies are better prepared to meet those needs. They have a better understanding of the equipment and the niches that they serve. It is no longer enough to be prompt and have competitive pricing. Top producers are adding value to the purchasing process; they are leveraging every relationship and every transaction. Top producers are players in the industries they serve and are strong resources for their vendors and end-users.  Wheeler Business Consulting works with organizations and individuals to identify "What must be True" to become a top producing participant in the industry.

Quality matters and poor portfolio performance is not being tolerated.  For many years, equipment finance and leasing portfolios have performed exceptionally well.  However, the industry is starting to see some minor increases in delinquencies. Although delinquencies and write-offs remain below historical norms, investors, stockholders, and owners are reacting to any increase in portfolio performance. Many participants are investing additional time and resources to portfolio management and collections. Companies are revisiting internal credit and collection policies to confirm their capability to properly and pro-actively react to cracks in their portfolios. Wheeler Business Consulting works with banks and independent operations to solidify their internal portfolio management capabilities.

Wheeler Business Consulting works with management teams to further develop their human capital, to identify and fix weak links within the organization, and to improve overall efficiencies. Wheeler Business Consulting works with banks, independents, captives, origination companies, and investors in the equipment leasing and finance arena. We provide training, strategic planning, and acquisition services. Scott Wheeler is available to discuss your long-term strategies, to assist your staff to maximize outcomes, and better position your organization in the market.

Comments and suggestions are always welcome.

Scott A. Wheeler CLFP

Wheeler Business Consulting LLC

Phone: (410) 877-0428

Email: scott@wheelerbusinessconsulting.com

Website: www.wheelerbusinessconsulting.com