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.