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Thinking Small: Creating a Small-Ticket Leasing Company

BY Barry Marks
November 28, 2011

There are many reasons why small-ticket leasing has become attractive. Banks large and small are looking for alternatives to residential and commercial real estate loans, and the good yields in small-ticket leasing are enticing. The emphasis put on obtaining depositors and maintaining relationships has made banks hesitant to refer any business away, even small transactions that might not lead to bigger deals.

Independent leasing companies have also begun to rethink their longtime preference for the larger transactions. Small-ticket leasing may offer higher yields, keep good customers coming back for larger transactions and if nothing else, employ underutilized staff and equipment.

Small-ticket leasing is also an easy entry into the leasing business for former leasing company and bank employees looking to set up broker or small independent shops, and vendors are finding that any means of promoting sales are worthy of consideration, even if the per-unit sales involve small numbers.

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