Features

Stay up to date with the latest features and issues from the global leasing industry:

What was the role of credit guarantees for leasing and credit finance during the crisis?

By Amina Chakchouk, COO Leasing; Riadh Ben Salem, iMX Application and Business Expert; and Riyadh Smedhi, iMX Application and Business Expert, CODIX

In light of the Covid-19 pandemic, a crisis which has shaken the world, the leasing and credit institutions were left with many questions, such as how to manage liquidity in these difficult times. In response to the crisis, a number of support measures have been implemented, including rescheduling for the lockdown period with smoothing of the capitalised interest at the end of the contract, moratoriums on loan repayments, and deferments of tax payments.

The customer – the big bang of the business

By Ugne Kontare, Chief Business Development Officer, and Kestutis Skrodenis, Product Architect, SOFT4

Flexibility and the changing profile of customers have become sound keywords when talking about business processes over the last few years. Let us discuss how the customer profile has changed during the past few years; how this affects the financing process, and the leasing software providers.

The impact of Covid-19 on aircraft leasing

By Joe O’Mara, Head of Aviation Finance, KPMG

Coming into 2020, the aviation sector was in an unprecedented period, having enjoyed a ten-year super-cycle of growth. There was a widespread belief within the industry that the cycle had peaked and that there were material headwinds facing the sector, but also a general belief that any regression would be measured, barring an unforeseen black swan event. Little did we know the size of the incoming swan. The pandemic has clearly delivered the largest exogenous shock the sector has ever faced. The financial and performance metrics are startling. 2020 resulted in the worst ever global airline financial performance.

2021 Global aviation industry outlook

By Dick Forsberg, Senior External Consultant, PwC Aviation Finance Advisory Services, Ireland

What a difference a year makes! The past 16 months have visited unprecedented disruption not only on the aviation industry but also on every aspect of the lives of the entire global population. COVID-19 has disrupted economies and businesses, locked down billions of people, closed borders and brought airlines to their knees. The pandemic’s impact on aviation, in terms of financial losses, airline failures, unemployment and global connectivity, is already immense and has not yet reached its peak.

Leasing: The best way for businesses to go green?

By Miranda Stokkingreef, CEO, ABN AMRO Asset Based Finance

Almost two-thirds of executives believe sustainability is key to being competitive in today’s market, according to a study by business school IMD. It is good for the environment – and consumers increasingly want to buy from eco-conscious businesses. As a result, sustainability is becoming an intrinsic part of leasing solutions. Companies are increasingly looking at how this type of funding can support them in making the sustainability shift – whether that be supporting clients’ develop-and-maintain circular business models or contributing to the reduction of C02 emissions.

Beyond transformation: How the Covid-19 experience can help the leasing sector secure a digital future

By Ian Nelson, Q2, Managing Director EMEA

Before 2020 the leasing market was already changing. Smaller fintechs were disrupting incumbent financial services providers by using technology to improve customer experiences and revenues in a sector with typically tight margins. But leasing incumbents were responding to the challenge by planning digital transformations of their business. Few had made much progress by the time coronavirus struck. The pandemic forced a kind of digital transformation on almost every business.

The birth and growth of the aircraft leasing business

By Robert F. Agnew, President & CEO, Morten Beyer & Agnew, US

It is my great fortune to have spent the last 45 years in aviation. First, I served in KC-135s with the USAF, then with two great airlines, and finally running an aviation appraisal and advisory firm, as well as chairman of the board of directors for a publicly traded airline.

Time and tide wait for no one

By Mark Binks, Bynx

To say that the automotive leasing industry is going through a period of intense change and facing unprecedented challenges is an understatement. The interest in mobility services and consumers’ waning desire for vehicle ‘ownership’ is shaking up the whole concept of vehicle leasing, presenting both an opportunity and a threat to leasing and finance companies everywhere.

The impact of digital technology on the leasing industry

By Najeeb Ghauri, Netsol Technologies, Inc, US

In recent years, the vast majority of financial service providers have taken significant steps towards de-risking their lending environment. With traditional lenders less likely to offer finance in the face of strict regulatory requirements, organisations as well as individuals at every scale have had to turn towards alternative financing models to enable the continued growth and optimisation of their operations. Asset finance and leasing have quickly come to the fore as the most viable option for funding new equipment, vehicles and digital initiatives.

A life in computer leasing: a personal view

By Lord Mitchell, The House of Lords, UK

1968 - Martin Luther King and Robert Kennedy were assassinated. Riots raged on campuses around the world. Paris was in turmoil. Manchester United had just won the European Cup (I was there) and one Parry Mitchell entered the leasing industry. On and off I was to stay for 40 years, until I was seduced into the calm, uneventful world of politics!

Leasing in the Middle East and Africa

By Hans Geijsen, Invigors EMEA LLP

While leasing can trace its origins to the Middle East, in Mesopotamia and Persia, it is nonetheless very difficult to perceive strong and significant activity in equipment leasing in the Middle East and North Africa (MENA) region. This is despite the well-established concept of Ijarah governing leasing contracts, with its foundation in Shari’a law.

EETCs: A viable financing option for US and non-US airlines alike?

By Mary O'Neill, Shari McField and Wanda Ebanks, Maples and Calder

In simple terms, enhanced equipment trust certificates (EETCs) are corporate debt securities, typically issued by airlines. EETCs are secured on the aircraft operated by the airlines, and are structured through special purpose companies (SPVs) created specifically to own the aircraft and “enhanced” by elements such as debt tranching, availability of liquidity facilities and over-collateralisation.

Seizing the next digital opportunity

By Carmen Ene and Nick Gallop, 3 Step IT

Carmen Ene and Nick Gallop from 3 Step IT discuss how digitisation is widespread, and the next step is digitalisation. It offers the opportunity to re-engineer business processes and create competitive advantage. But opportunity is not always realised: skills are in scarce supply and the expectations for a digitalisation project are not always realistic. What should we hope for? Where should we focus? How can we maximise the chances of success?