Vendor Equipment Financing
“The Right Vendor Equipment Financing Program Is Critical For Maximizing Sales”
And if you’ve been selling equipment for any period of time, you probably have (or not) a vendor equipment financing program in place.
If that’s the case, let me ask you…
- Is it costing you sales?
- Are the customers happy with the options its provides them?
- Does it seamlessly connect into your sales process without creating more work for you?
If you answered yes to any of these questions, then I strongly recommend that you give us a call to assess your current program so we can provide recommendations for improvement.
The reality of the lease financing business is that its driven by vendor financing programs.
Without a steady stream of deals to review and fund, no leasing company is going to survive for very long.
And the potential for repeat business that is available to the leasing company by customer coming back for future funding is considerable.
But from the vendor or equipment seller side of the equation, things are not always set up for best results.
Let me explain.
Many times when a business to business customer financing program or vendor financing program is set up for a particular reseller or vendor, the actual program put in place leaves a lot to be desired which may not be obvious to the vendor.
Here’s A Number Of Things To Consider.
First, when a leasing company sends out a rep to your business to sell you on the merits of a vendor financing program for your customer, they are selling their own programs only. This may not be a problem if all your customers will qualify for their financing or if they are truly providing the best value in the market.
However, in many cases both these last two points are false.
Most businesses have a range of customer profiles with respect to their credit and financing profile. If you’re only working with one financing company that provides “A” credit, and the customer has “B” credit, then no financing is going to be forthcoming and the customer is going to have a bad experience with your financing program that could have been avoided.
In terms of the equipment financing company’s offering to your customers, many times vendors are working with a “B” equipment financing group when the majority of their clients have “A” credit, which means that yes their customers are getting approved for financing, but they are paying much higher rates that what’s available to them in the market.
Key Elements Of A Vendor Financing Program
If you want to get the most out of a vendor financing program for your customers that will drive sales and build on customer satisfaction, then the following three key things must be present in your vendor financing program.
- Relevant Equipment Financing Sources. Its important that the equipment financing companies you work with have a direct focus on the type of equipment you sell and the industry you are in, otherwise its going to be harder to get deals approved quickly. Further, the financing source or sources you work with need to cover off the full spectrum of customer credit you’re likely to encounter.
- Vendor Program Customization. The equipment financing offering should appear to the customer as an extension of your business and your branding, providing greater value to them and increasing your importance to them.
- Equipment Financing Administration. In order to make any vendor financing program work effectively, you are going to need exception service from the equipment financing broker or agent this is coordinating the whole process for both yourself, the customer, and the financing company. A certain amount of stuff can be automated, but in the end, fast turnaround and equipment financing approvals will always depend on an experienced administrator collecting the initial information, packing and directing it to the appropriate equipment loan or equipment leasing program, and then performing all the follow up required to close the deal.
If you’re selling equipment to other businesses, not having a vendor financing program is leaving money on the table.
If you have a vendor equipment financing program that does not cover off the credit range of your customers or provides the hands on customer service to get deals closed quickly, then you’re leaving money on the table.
In either case, we can help correct the problem and increase your profits in the process.
For more information, please give us a call so we can go over your requirements with you and provide relevant vendor equipment financing options for your immediate consideration.