Fred Carollo
Fred Carollo, general manager, Office Products, EverBank Commercial Finance, Inc. shares his views on the trends that will be shaping the industry in 2013 and what Everbank Commercial Finance is doing to ensure their office technology dealers are successful.
What are some of the trends that will drive your business and the imaging and office technology industry in 2013?
Carollo: The convergence of information technology and equipment sales has blurred the lines between traditional equipment and technology solutions. Transactions today require a total solution that includes hardware, supplies, service, software, professional services and even cloud-based products. Vendors and end-users are looking for a finance solution that will handle these complex solutions.
We’re also seeing a shift in the way dealers are going to market, adopting digital technologies to improve efficiencies. We understand the need for information to be delivered in new ways and are investing heavily in delivering information to our vendors in real time, whether to smartphones or tablets.
What are some of the challenges you expect to experience over the next 12 months?
Carollo: Rates are at a level not seen in 20 years, as the cost of funds remain low (especially for bank-owned lessors), coupled with very strong portfolio performance. With volume levels essentially flat, rates have become an area of intense competition for dealers to maintain or gain a larger piece of the pie. We expect this rate pressure to continue throughout the year.
The Office Products finance industry is as competitive as ever and the number of major players in the market has doubled since the recession driven by strong yields (compared to other hard assets), strong portfolio performance, and a stable end-user credit environment. This trend will continue into 2013 as economic growth continues throughout the country. From a product offering standpoint, there will be a widening of the divide between “full service” and “traditional” leasing lessors. The cost of funds that bank-owned lessors have will continue to be a competitive advantage over non-bank lessors, and I believe we will continue to see non-bank lessors use end-of-term practices and tactics in order to remain competitive on an upfront price perspective.
What do you have planned to help your dealers be successful in 2013?
Carollo: In addition to competitive, market-based pricing and programs, rapid turn-around on credit reviews with high approval rates, and hassle-free processing, EverBank Commercial Finance has a complete implementation plan to assist dealers with entering the MPS market, a key growth area for many of our dealers in 2013. We partner with consultants and training companies to assist them in all aspects of their business. Additionally, we create and sponsor sales incentive programs in conjunction with our dealers to drive performance within their sales teams and achieve specific business objectives.
