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Unformatted text preview: equipment needed. On a whim, the CFO filled out an online request from Capital.com. The Company was able to quickly and efficiently broker the requests to various financial firms and was able to quickly arrange the leasing. 2. Describe how Smith International uses the web to secure operating lease financing. Smith International, Inc. supplies equipment to firms in the oil and gas industry. It leases substantial amounts of equipment, with approximately $115 million in noncancelable outstanding operating leases. It uses the Internet to acquire the operating leases efficiently. The use of the Internet allows Smith International to bundle lease requests into packages worth at least $500,000. It auctions the packages to the highest bidder. The advantages to the company include lower transaction costs, greater efficiency and competitive pricing....
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This note was uploaded on 09/13/2011 for the course FIN 6301 taught by Professor El-asmawanti during the Fall '09 term at University of Texas at Dallas, Richardson.
- Fall '09