Elevator Speech on a Ski Lift

 

 Kevin F. Clune, CLFP

While riding on a ski lift last month, I chatted with a young man who happened to jump on the chair with me.  I was a bit surprised when he asked me what I did for a living but I obliged him with my short elevator speech. “I own an equipment leasing company that works with both vendors and their customers to provide financing for capital equipment.”

When he replied that he was an engineer, I thought he would have had some familiarity with the leasing industry.  However, his line of questioning indicated that he was unaware of what I did.

I explained that our company does work with a lot of engineering companies across the country to finance their large format printers, copiers, and other related capital equipment, but his interrogation continued.  

  1. What is the advantage of a lease over a cash purchase?
  2. Why don’t vendors offer leasing?
  3. Who owns the equipment?
  4. Do you also service the equipment?

As I attempted to rattle off some answers before the end of the ski lift ride, I felt a bit amazed that he wasn’t more aware of the equipment acquisition facet of his company. I think it was an aha moment for both of us for different reasons. 

For those who are interested (but at the risk of boring readers who are better informed), I did respond as best I could in the brief time we had together.     

  1. A lease allows for easy upgrades for equipment that is subject to obsolescence.
  2. Some Vendors as well as banks do offer financing but we exist because not all have that service.
  3. The leasing company owns the equipment until the end of the lease. Depending upon the lease contract, the customer can either purchase, upgrade, or return the equipment.
  4. The vendor services the equipment. 

This experience made for an interesting ski lift ride but unfortunately, we had to jump off the chair before we could exchange names or business cards.  On the other hand, if you have any questions, you don’t need to hit the slopes with me for the answers. 

Call anytime,

Kevin F. Clune CLFP
Clune & Company LC .