Many companies have experienced a lot of volatility in their revenue streams over the past year. COVID19 has impacted specific sectors differently, and it is questionable whether certain sectors will ever recover to pre-COVID levels.
We are seeing a major shift in attitudes from businesses and manufacturers coming out of this COVID19 crisis. The need to meet new customer demands, reduce risk and increase flexibility are all top of mind for companies that are considering acquiring new assets and now very much in focus for manufacturers who are selling these assets.
Businesses are looking to better match their revenue streams with their expenses and move away from traditional ownership and committed funding methods. Many inherent business costs can be insulated, but many fixed costs can be left exposed, putting pressure on cashflows and budgeting especially where a business experiences seasonality or fluctuations in demand.
These companies now want new innovative funding structures that align the assets to their actual usage, so that the amount they pay for those assets becomes a variable cost that matches more closely with the ups and downs of their business.