Let’s take a deeper look.
Work smarter, not harder.
Last year, your company budgeted for the equipment needs for this year. By now, your Procurement department is actively seeking bids and sourcing that equipment. But let’s face it, there are very few manufacturers of equipment that are minority owned entities. Computers, office equipment, material handling, transportation are all produced by large public or private entities.
How can Diversity Managers benefit from equipment acquisitions?
First, Diversity Managers need to be at the budget discussion table not only to advocate for their DEI share but also to be aware of the annual equipment acquisitions planned. Second, of the millions of dollars allocated for equipment, what percentage will be financed? How and where will the equipment be financed? Diversity Managers can benefit from this outcome without tapping into their budgets for training, recruiting or hiring. Diversity Managers can attain and increase their spend goals in a significant way simply by understanding the scope of the procurement and working with Finance to identify opportunities where diverse businesses are part of the financing solutions.
Tame inflation and control costs
“Rising rates and uncertain economic conditions are the perfect time to employ Fair Market Value (FMV) leases to finance equipment,” Robert Short, CFO for Delta stated at their recent roundtable for their bankers and investors. “By utilizing FMV leases, companies have a fixed expense (lease payment) for the term of the lease that is not influenced by rate fluctuations.” Short added, “FMV leases allow companies to utilize assets rather than own them. At the end of the lease, the decision can be made to return the equipment that has served its purpose and upgrade to the latest technology while controlling the cost of use.”
But how does this help a Diversity Manager?
Finance has many Lender options – national and regional banks, independent and manufacturer/captive lessors as well as certified minority owned lessors. One of their choices should be a diverse entity.
Leasing as an efficient and productive tool
Procurement Managers are empowered to buy equipment from any source and at the best price. The next step in the acquisition process is often financing the equipment. Finance Managers are tasked to find the best resources and structures to finance the equipment. Diversity Managers are responsible for introducing and influencing the selection of outside partners that put emphasis on diversity. Consider doing this through equipment leasing and financing partners.
According to a 2020 article from the Harvard Business Review titled, “Why You Need a Supplier Diversity Program”, an inclusive procurement strategy widens the pool of potential suppliers and promotes competition in the supply base, which can improve product quality and drive down costs. And by providing more sourcing options, inclusiveness can make supply chains more resilient and agile — an increasingly important advantage in these uncertain times.
Often by working with a diverse company, like Delta5 Resources LLC and utilizing a FMV lease structure, your company benefits with an up-front lower lease payment as well as flexibility in terms, structures and end-of-lease equipment disposition.
The time has come to work smarter, tame inflation and utilize the efficient and productive tool of equipment leasing to expand your diversity influence and increase your spend.
Delta5 Resources LLC is certified by the National Veteran Business Development Council (NVBDC) as a Service-Disabled Veteran Owned Small Business Enterprise. As an independent Lessor, Delta is a direct provider of Tier 1 Diversity Spend. Delta also partners with banks, vendor finance programs, and independent funding sources to provide their clients Tier 2 Diversity Spend. Delta5 leases a variety of equipment assets with flexible terms, including soft costs. Lease Lines of Credit to $25MM, and flexibility to fund transactions from $50K to $25MM. Delta is 100% involved in the lease from beginning to the end of the lease, providing superior customer service through-out.
Delta is committed to supporting veterans and contributes a portion of their profits to Wounded Warrior and other Veteran outreach programs.
Delta5 Resources expanding social impact through equipment finance. www.leasedelta.com
Delta is an independent provider of equipment financing solutions. As a certified Service Disabled Veteran Owned Small Business, we are focused on originating and servicing Fair Market Value (FMV) operating leases for enterprise-level, business-critical equipment across a wide range of industries and asset classes.
