Polski
Construction equipment, agricultural machinery and elements of production lines have also found their way to the leasing market. Those are larger machines requiring greater funds – thus, not every enterprise can afford them or is willing to freeze the money that could otherwise be used for further growth. Still, that’s not all. Smaller businesses can also find something for themselves. More and more often offers of leasing companies include financing for catering equipment for aspiring restaurateurs, or necessary gear for beauty salons. The target audience for such services also consists of freelance entrepreneurs, such as doctors, dentists and therapists. Do you need a dental chair? No problem – you can finance it with leasing.
Now we move to the less obvious things that led me to more profound analysis. Let’s imagine a millennial or a person from Z generation, trying their best in social media. After all, one day he will become a target audience. While taking his or her first steps online, he will use the equipment from his parents or bought with his first salary. As his channel grows thanks to his determination, he will need more spectacular effect to attract followers. That can only be achieved with professional equipment capable of producing high-quality materials. In the same time, the business will also require additional services provided by other assets. Usually, there are dozens of people creating brands’ image and recognition. In that matter, leasing companies have done their homework – in their offer you can find computers, smartphones, cameras, or even drones.
One would like to say “good job” – but did leasing companies adjusted their sales processes to the millennials’ (born between 1985 and 1994) and generation Z’s (born after 1995) needs? They, or, based on my age, we, know exactly all the possibilities of online transactions. Many of us have already become entrepreneurs, others expect to become a part of that group in the near future. Interest in B2B cooperation is also on the rise, resulting in a growing number of small businesses. However, leasing companies are not always willing to join them in online channels.
Small devices, such as computers of smartphones, are an excellent example of this problem. Electronics is one of the 3 types of goods most often bought by generations Z and Y, with 50% of such items being ordered in the online channels¹. It is worth noting that Polish representatives of generation Z are more likely to purchase goods online that their international counterparts. Among global generation Z only 34% of respondents have claimed to purchase products from Electronic Gadgets category online, compared with 56% of their Polish contemporaries.
And what does the leasing industry do about it? Does it adapt its services to online environment?
Unfortunately, even though that we can observe some action on its behalf, the general intervention is still at an initial stage. We can rarely encounter a fully remote leasing process. In practice, there are only a few companies that have invested both time and money to reach this target audience. The pandemic seems to accelerate the process, confirming the advantages of online channels.
Currently, available data shows that in the majority of cases one should deliver the physical documents in order to lease an item. Therefore, after receiving an offer we should sign it with a pen, put it in an envelope and send it to the leasing advisor.
How long can this process be efficient? We do not know. We still have some supporters of transactions processed in traditional channels, as well as some enthusiasts of online transactions. The decision is not being made easier by the regulator that still requires a handwritten signature on every contract. More agile leasing organization will adapt to the market quickly. A rapid change can, however, cause chaos and unnecessary tension. Wouldn’t it be better to gradually introduce changes even today? As a provider of IT services, we can already confirm that some leasing companies have already faced the challenge. Unfortunately, majority of entrepreneurs is just tracing the pioneers without following in their footsteps. We anxiously observe it because, as the experts in the field we are already sure that there’s no turning back from online leasing.
Resources:
- Accenture, How does Generation Z buy? Report, https://www.accenture.com/_acnmedia/PDF-98/Accenture-raport-2019.pdf
