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Our client is a leading independent technology and services provider, helping organisations design, deploy and manage IT infrastructure and workplace technologies. With an established device leasing programme already supported by funding partners, the company wanted to strengthen its leasing business by improving profitability, simplifying operations and gaining greater control over the end-of-lease lifecycle.
The client already offered device leasing through established funding agreements, but recognised an opportunity to improve both the commercial performance and operational efficiency of its leasing programme.
As leasing volumes increased, managing end-of-lease processes became more complex. The company wanted to gain greater control over the complete leasing lifecycle while improving profitability, strengthening competitiveness and reducing dependence on existing operational constraints. At the same time, it needed to ensure that any new business model remained compliant with IFRS lessor accounting principles, particularly around residual value accounting, without increasing balance sheet exposure.
Black Winch partnered with the client to redesign the operational and financial foundations of its leasing business. Working alongside business, finance, accounting and IT teams, we helped define a new operating model while supporting the specification and implementation of a software solution capable of managing leasing contracts and lessor accounting more effectively.
Operations
We defined specialised operational teams, workflows and governance, supported by advanced As-a-Service processes and tooling. In parallel, we coordinated with the client's software provider to specify the functionality required to efficiently manage leasing contracts, lifecycle events and lessor accounting.
Funding
We helped our client regain control of its end-of-lease process, and the profitability associated with it, which had previously been largely left to the funders. The new model reduced operational dependency on a single financing structure while creating greater flexibility for future leasing growth.
Finance
We worked closely with finance and accounting teams to assess the application of IFRS lessor accounting principles relating to residual values. Together, we designed a business model that enabled investment in residual values without jeopardising equipment derecognition or the timing of revenue and margin recognition. The resulting financial strategy improved upfront margin recognition while strengthening end-of-lease profitability.
“While we mastered leasing tactics, Black Winch took us further with an innovative strategy that enabled upfront margin recognition, significantly boosting our bottom line.”
As leasing programmes grow, operational complexity and accounting requirements can quickly become barriers to profitability. Black Winch helps technology providers redesign their operating models, optimise funding structures and implement the processes and tools needed to manage the complete leasing lifecycle with confidence.
Contact us to discover how we can help strengthen your As-a-Service business.