Financing Customer Equipment Purchases
Financing Customer Equipment Purchases Through Vendor Financing Programs
Financing customer equipment purchases through third party financing companies on a timely basis can be a very key component to hitting your sales targets and profit expectations each year.
Some equipment dealers and resellers actually provide their own in house self funded programs, but for the most part these programs are provided by banks, institutional lenders, and leasing companies.
The role of the equipment financing company is to accept applications from your customers to fund a particular purchase and provide financing terms and conditions that are acceptable to your customer.
This can be easier said than done because all equipment financing must be approved based on the strength of the customer’s credit profile and financial standing at any given point in time.
Without an approval, there is no funding and potentially no sale.
To Finance A Customer Purchase
You Need Have The Proper Equipment Financing Program
In order to tap into all the capital available in the market that provided equipment financing for business to business transactions, you’re going to need to be working with an equipment financing specialist that has direct access and experience with suitable lenders and leasing companies that can collectively meet your customer needs.
Most businesses will have a group of customers that fall within a certain credit spectrum. The key to being able to have readily available credit for the most likely customer profile is to already be working with equipment financing companies that provide funding to similar customers.
Then, when you have a potential sale that requires financing to complete, your equipment financing specialist can match up the customer credit profile with the most relevant lender or leasing company and get an approval in place for financing as quickly as possible.
Customer Purchase Financing On Equipment
Can Require Some Expertise To Locate And Secure
This is where the expertise of an equipment financing specialist can become critical to the process.
Unless you have a totally uniform customer profile where all the customer needs can easily be met through one lender or leasing company, its going to be necessary to work with an equipment leasing specialist or broker who is capable of quickly assessing the client’s requirements and credit profile AND then directing their application for financing to ONLY highly relevant source of equipment financing in order to maximize the probability of not only getting a quick approval but getting an acceptable approval period.