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Writer's pictureDEROTTO Leasing

THE IMPORTANCE OF "TRUST" IN THE FINANCING BUSINESS

One of the main reasons DEROTTO has been fortunate to serve so many businesses over the years is because of TRUST. TRUST is so important in our business. Without it DEROTTO would not be here.


As an equipment finance broker each transaction involves several different parties. The parties include,


The company 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).


Based on some of the recent fraudulent activity happening in the marketplace 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. For most financial transactions the lender will require the seller to provide detailed proof of ownership of the asset in order to verify the seller has the right to sell the equipment to the buyer.


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 15+ years DEROTTO has done more than 2,500 leases and/or loans which has translated into more than $100 million in financing.

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