Get a Toronto vendor finance program put into place for your business customers through our brokerage services.
We do not provide any type of consumer financing; only business to business applications where your customers are registered businesses or business owners.
A Toronto vendor finance program is essentially a relationship you have with one or more equipment financing companies who are prepared to entertain equipment financing applications from your customers for the equipment that you sell.
While any customer can apply for credit on their own, the value of having a vendor financing program in place all about the speed of getting financing in place so that the sale can close as fast as possible.
If the customer has to start from scratch seeking financing for a potential purchase, the process can not only take considerable time, but it can also see your customer entertaining offers from competitors that can provide easy access to equipment financing programs.
And not all equipment financing companies are a like either.
Any potential financing company is going to have to 1) be comfortable with the type of equipment and the amount of financing; 2) be comfortable that the vendor is a reputable dealer; and be able to qualify the credit and financial profiles of your typical customer in order to approve a request for finacning.
When a Toronto vendor finance program is in place, any financing companies your customer application is forwarded to will have already approved both the dealer and the equipment being considered for financing, leaving only the customer credit qualification to get a funding commitment in place.
This serves to not only greatly speed up the financing process, but to only have your customer’s credit application be directed at relevant equipment financing or equipment leasing sources that can actually fund the deal.
In the competitive world of equipment sales, not having a proper vendor financing program in place can be a real hole in your sales process that can be used against you by your competitors.
Even having a vendor finance program doesn’t guarantee success by any stretch as it has to not only be well suited to the types of credit applications that will be put forward, but must also deliver the type of customer service that is in keeping with how you conduct the rest of your business.
Every financing scenario is somewhat unique, so you need to have vendor financing program administers who are capable of taking a hands on approach with your customers in order to work through whatever details exist to get a deal closed and funded.
Too often vendor financing programs are administered through an order desk from one lender or leasing company where different people are always working on your customer files, providing less of a customized service than what may be required at times.
Our approach is to work closely with each and every one of your customers, get their application package properly assembled, forward the application to the most relevant of our lending partners qualified to receive the deal, and then work through the details with the customer until everything is properly in place with respect to their equipment financing requirements.
Its one thing to have a vendor equipment financing program in place for your customers.
Its quite another to utilize it in a way that isn’t going to get you the results you require.
Too often the seller or vendor does not provide their financing partners with enough information to complete financing in an expeditious fashion, potentially putting a sale at risk in the process and straining the vendor financing relationship.
Equipment financing, like any other type of financing needs to work backwards from the lender or leasing company.
What that means is that every lender or leasing company out there that provides equipment financing through vendor programs is going to have certain requirements with respect to funding criteria, lending documentation, and account administration.
When something is a requirement, it must be in place, otherwise the process or action cannot be completed.
This is where a lot of vendor programs fall down as the vendor or reseller holds on to the idea at times that the people they interact with at an equipment financing company can subjectively bend the rules, or look the other way if key information is missing and get the deal approved.
The main reason for this line of thinking is in the haste to complete the deal, the seller or sales agent either omits the collection of key items required by a financing source, or doesn’t want to disturb the customer with the “financing details” as there can be a view on the sales side that excessive information requests can kill the deal.
While that may very well be true, your vendor equipment financing program is going to work much better for you and your customer if your focus is on getting the required information than trying to work around not having it for whatever reason.
We can refer back to the old sales adage that you need to under promise and over deliver and than is directly applicable to vendor financing programs.
The goal on all sides is to complete business as quickly as possible.
The key to doing that is from both sides, seller and financier, to be highly invested in the financing process.
If there are process improvements that need to be changed, or customizations to fit the needs of the seller, then they should be discussed at the start of the relationship so that proper expectations can be established.
For instance many financing companies will be able to approve equipment financing requests based on the personal credit and net worth of the business owners.
But once the amount of financing reaches a certain point, business financials are going to be required to support the lending and funding request. And if the applicant only wants to provide a corporate guarantee, more information may be required from the outset.
Failing to follow what is typically a well described process will only lead to customer frustration when a financing commitment is not forth coming as promised.
And high expectations can also cause the financing company not to go out of their way and over deliver at any point even if they are capable of doing so due to the fact that the expectations will then only go higher and be harder to match.
Even if you know you’re working with an equipment financing company that is a good match for your customer financing requirements, it can still take time for the financing application, approval, and funding process to work smoothly and seamlessly every time.
In many cases, there are small issues that come up as well that can impact the process and need to be worked through by all parties involved with a level head.
Some vendors will experience early frustration when the process does not meet their expectations, and instead of seeing how things can be improved on both sides, they continually jump from vendor financing program to vendor financing program, incurring the same problems over and over again.
Not only is this disruptive to the business, but it can get to the point where it may be hard to find an equipment financing company that is prepared to work with you.
The key point is that the more both sides understand their role in the process and set their own expectations accordingly, the more successful the vendor equipment financing program is going to be over time.
In the equipment financing world, most financing and leasing companies are very interested in financing most types of dental equipment purchases.
Mainly because of the strength of the customers which in this case are dentists or dental laboratories. Both tend to score very well on the credit side with dentists rating slightly higher than dental lab or dental service providers than are non dentists.
From a vendor financing point of view, this is great news for your customers as there is a lot of competition for this business, meaning great rates and several options, regardless of where you’re customers are located.
The ability to direct customers to a prequalified equipment financing program that has a high probability of providing them with a competitive offering for equipment financing right away is going to be key to maximizing sales and profitability.
So while its great that financing is readily available for your dental equipment buying customers, how competitive is your vendor program compared to your competitors?
Let’s face it, everyone you consider to be a competitor is also going to have a vendor financing program in place and if there program is a better fit for the needs of the client in terms of rates and terms, then the financing aspect of their sales offer can make or break the deal at times.
Not all vendor financing programs are alike and you might be surprised to learn that its not uncommon that one supplier in an industry can have a competitive advantage over other suppliers simply by having a more competitive and customer suited vendor financing program in place.
While the cost of financing is certainly important to the customer, the one aspect of a vendor financing program for dental equipment buying customers that is arguably more important is speed.
That’s right speed in getting the application processed, approved, and funded.
The dental equipment supply equipment is so competitive that if you can’t close a sale in a couple of days where financing is required, there is a good chance that a competitor sales rep could come into the picture to try and take the deal from you either with a lower margin offer, or a faster financing approval.
If you’re not working with an equipment financing source that has the capacity and commitment to not only turn your deals around quickly, but also get the application packages prepared properly and sent to the right lender or leasing company in the first place so no time is wasted, then there is a good chance a lack of speed and performance is going to cost you sales.
If you’re in the dental supply business, we would welcome the opportunity to speak with you about your vendor financing needs either in terms of reviewing what you already are working with, or putting a totally new program in place.
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.
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.
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.
An equipment financing program can be a very critical element to a solid sales process for an equipment reseller or equipment dealer.
The ability to introduce the customer into a relevant source of equipment financing can make or break the deal at times.
Sometimes this is because the customer has a very tight time schedule and requires the financing quickly to secure the equipment and meet that requirement.
Sometimes its because the competitor also offers equipment financing programs and if yours fail to deliver, the competitor is more than happy to step in and save the day.
The first major benefit is completing sales as quickly as possible. Any time a sale has to be delayed for financing, there are a number of things that can happen to the deal and most of them are going to be bad. Not only could you loose the customer to another vendor financing program, but you’re tying up assets that could potentially be sold to someone else.
The financing process can be frustrating to your customers at times, so if you’re making it easy for them another key benefit is customer satisfaction which may not only lead to potential incremental sales in the future, but also some goodwill in the form of word of mouth advertising.
When a well suited equipment financing program is in place, you can also include it in your company promotions providing more sales punch to any of your marketing messages.
The flip side of all the benefits is what happens when you don’t have an equipment financing program in place or a poorly functioning one.
And there are different things that can cause a lack of performance in this regard.
For instance, you could be working directly with a leasing company that does not have the type of turnaround time your sales process requires.
Or the equipment financing program is limited to only one lender that can’t cover off the majority of your requests for financing.
Regardless of the reason, if you’re customer cannot get timely access to credit terms and conditions they are prepared to accept, there may not be a sale, which will impact your inventory turnover and bottom line profit.
If you’d like to inquire about an equipment financing program for your customers or get a second opinion on the one you already have, please give us a call for a free program assessment.