Property and equipment lease debt require a specific strategy for a successful conclusion. The fundamental differentiator of these debts compared to more traditional forms of debt is the obvious fact that the individual leasing the item does not have an ownership interest in it. No matter what form of lease debt your company has, Second Wind achieves success by leveraging reality. The controlling principle is simple: lessors do not want vacancies, whether that means an empty space or an unused piece of equipment.
Consider, for instance, the only two feasible options a landlord has for dealing with a defaulted property lease. They can chase an insolvent business and endure a vacancy until the property can be rented again, or they can accept the loss of the arrears and adjust the rent down to affordable terms that the market can bear and the business can afford. This solution sets both parties up for success by allowing the landlord to resume rent collection while providing the underlying business operation a realistic and sustainable option. A win-win.
This same logic can be applied to leased equipment. With the exception of vehicles, most equipment is not worth the time, money, and resources required for repossession. Liquidating used, leased equipment is a lengthy, cumbersome, unpredictable and therefore risky proposition for any lessor. Unfortunately, this is the only option historically available. Second Wind uses forced liquidated valuations to understand the financial position of lessors dealing with default in order to provide them with an opportunity to skip the entire process and get them a better return on the assets.
Loss, failure, and default are part of business, whether you are a business owner, a real estate proprietor or a manufacturer of specialized equipment leasing out the product. The question is: how do you maximize return and mitigate damage in these inevitable situations? We can help you navigate these difficult circumstances in the most effective and efficient way.