US company set to tackle lease transfers for corporations

by Canadian Shipper

Leasing is an increasingly popular options for shippers who prefer to maintain their own truck fleet. However, the options available to exit an equipment lease before its expiration date are limited and usually expensive.

Recognizing the potential of what could ultimately be a $50 billion market, an American company, LeaseTrading Inc. has introduced an exchange to facilitate lease transfers for corporations.

Transportation is one of the sectors targeted by the exchange.

The exchange’s trading platform allows single source shopping and online negotiation, and manages all aspects of the lease transfer process,including credit qualification.

LeaseTrading has wisely added a human component, the Trading Desk, to its service, which manages off-line transactions and equipment searches.

"Creating a liquid market for lease transfers has potential. Companies financing leasing transactions could realize a stronger portfolio as reasonable exit options for customers in default become more available," according to John Fontanella of AMR Research. "The anxiety caused by the lockup characteristics of leases is mitigated,making the buy/lease decision less critical, and potentially opening up new market opportunities. As the pioneer, LeaseTrading offers a credible service to the secondary leasing market."

Have your say

We won't publish or share your data