The management of a leasing Company needs to be aware of inter-play of numerous factors that can impact its performance. An organization that is part of this industry is required to take care of all of these and devise a manner to attain a 'balanced growth'. BSC offers the lending hand in this regard and set of carefully devised KPIs can go a long way in streamlining the functions of a leasing company. Lets look at some of key areas where KPIs can helpTo begin with financial tracking can be done with parameters like Equipment Leasing volume, Debt: Equity ratio, Market Penetration rate. This is to manage the financial angle of the team. Internal operations should be as per the expectations. This can be had with average loans and leases to total deposits and core deposits and the number of sectors in which the company desires to make a mark. Customer Perspective can be had with % rise in customer base, decrease in the complaints incidences and increase in the return rate of customers. Lease Terms and Payments can be had with the factors that are considered while deciding for the payment amount, the value of re-payment decided.
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Leasing companies are involved in providing equipments and other entities on lease. Companies operating in leasing industry are required to 'watch their steps' in an extremely careful manner. This is to keep an account of the way things and operations have been going on in the company.
There are large number of factors that operate in the surroundings of the firm to create an entangled environment for the functioning of these firms. The rental agreements signed by lessor and lessee are carved out after paying heed to various underlying principles and 'possibilities' that might arise in future.
As a summation, this 'process of tenancy' needs to be conducted in a meticulous manner so that none of the engaged parties suffers at the hands of any other.
This in turn calls for employing a strategy 'to manage performance'. Managers have often used BSC (Balanced Scorecard) to attain this. This is a tool to bring the 'valuable metrics' together on a single platform for further analysis.
This is to have an instrument for 'balanced and uniform growth' so as to keep all stakeholders equally happy and involved. BSC does exactly this and in a seamless way.
This is the actual scorecard with Leasing Company Dashboard and performance indicators. The performance indicators include: financial perspective, investment in equipments done, equipment leasing volume, market penetration rate, debt: equity ratio, customer perspective, % rise in customer base, customer return rate, % dip in the number of fraudulent cases, complaints reduction ratio, internal processes perspective, average loans and leases to deposit ratio, average cost of core deposits, loans and leases receivable, number of sectors the company caters, lease terms and payments perspective, average lease term the organization provides, fraction of instances when the up-front security payments exceeded 10%, advance payments index, number of factors considered to decide the amount of payment.
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