"If people like you, they will listen to you, but if people trust you, they will do business with you."
- Zig Ziglar
With Q3 of 2024 in the rearview mirror, we are in the final stretch of 2024 – how time flies. In Q3 we saw the Bank of Canada continue to reduce the bank rate. The Bank of Canada reduced the bank rate by another 0.25% on September 4th. This is the 3rd reduction since June 2024. We are starting to see interest rate decreases across the board with all of the lenders DEROTTO works with. If you have been considering equipment financing and have been holding off for lower interest rates, then now is the perfect time. Give DEROTTO a call to discuss your options.
One of the main reasons DEROTTO has been fortunate to serve so many businesses over the years is because of TRUST. Without TRUST DEROTTO would not be here. Because of the importance of TRUST to our business, we thought it would be worth discussing it in detail.
On an aside note, year-to-date DEROTTO has given away $30,050 in gas gift cards - "Thank You" to all the businesses for the trust and support. To learn more about DEROTTO’s gas card program click Earn Gas.
As an equipment finance broker, each transaction involves several different parties. The parties include:
The company/borrower purchasing the equipment.
The company selling the equipment.
The company lending the money .
All financial transactions have to have a level of comfort in order to make it work. TRUST is the foundation for every successful financial transaction.
For the company purchasing the equipment, they must trust DEROTTO when providing their credit and financial information. This information has to be treated with the utmost care. The company must also have confidence they are receiving the most competitive finance structure available base on their credit and financial profile and equipment being purchased.
For the company selling the equipment, they have to trust they will be paid in a timely fashion.
For the company lending the money, they have to trust the credit and financial information provided by the buyer and the equipment details provided by the seller. Based on this information the lender makes a credit decision and, if approved, the lender must have faith the buyer will meet their commitments under the finance agreement (i.e. Make their payments on time).
The lender must have the assurance the seller is real, and they have the right to sell the equipment. This may sound strange and common sense, but it happens too frequently in this business. Based on increased levels of fraudulent activity in the marketplace lenders are taking extra precautions. For most financial transactions the lender needs confirmation of 2 items:
The seller needs to provide detailed proof of ownership and/or proof of payment of the asset in order to verify the seller has the right to sell the equipment to the buyer. For re-financing transactions where there is no seller, the borrower needs to provide proof of ownership in order to verify the borrower owns the asset that is being re-financed. The lender also needs to do searches on the asset and seller or borrower in re-financing situations. This can sometimes result in a wavier(s) that needs to be signed by a secured party that has a direct interest in the asset or has an indirect interest in the asset via a general security agreement registered against the seller or borrower. This can sometimes cause frustration by the seller or borrower, but the lender has to confirm there are no liens or encumbrances that might impede the right to sell or re-finance the equipment. This protects all parties – borrower, seller and lender.
The lender also has to trust the seller of the equipment for those situations that require some form of early commencement or pre-payment prior to delivery of the equipment to the buyer. The lender and buyer are trusting the seller to deliver and/or manufacture the equipment in proper working condition.
Finally, the finance broker, who is the quarterback of each transaction, needs to have faith in everyone involved to make it work. The buyer wants their equipment yesterday, the seller wants their money as soon as possible, and the lender wants all required items to complete the transaction to be clean of any deficiencies so that the financing can be processed in a timely manner. Communication and trust throughout the process is critical to make everything work.
DEROTTO Leasing has been fortunate to be part of 1000s of successful finance transactions. Over the past 20+ years DEROTTO has done more than 3,500 leases and/or loans which has translated into more than $150 million in financing.
If you have an equipment financing need, we look forward to having the opportunity to be of service. Visit us at www.derotto.com for more information.
Listed below is a summary of recent transactions completed over the past 45 days:
A 1980 Pecco SK170 tower crane valued at $110,000 financed at very competitive rates.
A 2004 Ford F-650 valued at $28,000 financed at single digit rates.
A 2013 Komatsu excavator valued at $75,000 financed at very competitive rates for a client coming out of bankruptcy.
A 2025 Western Star dump truck valued at $300,000 financed at bank rates.
A 1970 Volvo L90Cwheel loader valued at $38,000 financed at very competitive rates.
A 2024 Akhurst manufacturing equipment valued at $440,000 financed at bank rates.
A new boiler for a commercial building valued at $105,000 financed at competitive rates.
A 2015 RV valued at $26,000 financed at single digit rates.
A 2001 Freightliner FL70 dump truck valued at $36,000 financed at single digit rates.
A 1990 International vac truck valued at $50,000 financed at single digit rates.
New specialized welding equipment valued at $130,000 financed at bank rates.
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