THE IMPORTANCE OF "TRUST" IN THE FINANCIAL INDUSTRY!

"Trust is like the air we breathe. When it’s present, nobody really notices. When it’s absent, everybody notices."

- Warren Buffett

With Q3 of 2025 in the rearview mirror, we are in the final stretch of 2025 – how time flies. Q4 is often the busiest time of year for DEROTTO. We look forward to serving your business next time it requires equipment financing. Thank you to all the businesses that have given DEROTTO the opportunity to serve its needs in 2025. YTD DEROTTO has given away $32,675 in gas gift cards. To learn more about DEROTTO’s gas card program click here.

In our September newsletter we talked about DEROTTO’s 2 superpowers – speed and communication. For October we want to write about how those superpowers, complimented with “TRUST”, can make DEROTTO a valuable resource in your financing library.

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.

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 4,000 leases and/or loans which has translated into more than $150 million in financing. To see what people are saying about DEROTTO go to Google Reviews or the Better Business Bureau.

Listed below is a list of recent transactions completed over the past 30 days:

• A $75,000 working capital loan for a company to manage its receivables.

• A 2014 John Deere backhoe valued at $65,000 financed at single digit rates.

• A 2023 Dodge RAM cargo van valued at $47,000 financed at bank rates.

• A 1991 baler valued at $53,000 financed at single digit rates.

• A 2018 JCB telehandler valued at $92,000 financed at bank rates.

• A 2017 Bobcat valued at $38,000 financed at bank rates.

• A 2023 Chev cargo van valued at $50,000 financed at single digit rates.

• A 2019 Doonan trailer valued at $38,000 financed at competitive rates.

• A 2020 Freightliner valued at $75,000 financed at single digit rates.

• New tow truck towing system valued at $48,000 financed at bank rates.

• New portable toilets valued at $10,000 financed at competitive rates.

• A 2018 Double A trailer valued at $18,000 financed at bank rates.

  
  

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.