I’m often asked two questions; why is D&D Leasing so expensive and secondly is there a moral issue with the cost of the credit we offer. To both questions I say this: we need to be where we are in the market to provide the service we do, for the kinds of customers we offer it to.
Lets get something straight: blue chip customers do not and should not be offered high cost leasing. In their case it would be a dis-service, unless they are running into exposure issues, to even propose a high cost lease to them.
Conversely, small entrepreneurial l businesses that are newer, have hit tough times, are looking to purchase bad assets or are in difficult sectors, should not be receiving the same sorts of pricing as a blue chip customer. Unless they have credit enhancements available, these customers are riskier, often unproven, and sometimes in a difficult situation. To offer them the same credit package you would offer a blue chip is insulting to the blue chip but it’s also grossly under weighting the cost of the risks that may be in play here.