So you have a vendor financing program in place, or are thinking of getting on set up to be available to your customers.
In either case, here are some vendor financing mistakes that you should avoid at all costs so they do not create lost sales and reduced profits.
Often vendor programs are marketed very aggressively by leasing companies through their agents to get exclusive or semi exclusive access to the dealer or reseller’s customer financing business.
But many times these programs are a poor match for the financing requirements some or most of your customers that require financing. For instance, if the leasing company only provides equipment financing for “A” credit deals and most of your customers don’t have “A” credit, then its not going to be very effective and will actually irritate the customers as no one likes to get their credit declined which will also take some time to go through and at the conclusion of the process they still can’t complete the sale.
It is critical that a vendor financing program is set up to meet the credit requirements of most of your customers that will require financing or you would likely be better off without it.
Even if the vendor financing program is well suited to your customer credit spectrum, it still can do more harm than good if the equipment financing companies you are working with do not provide exceptional customer service and fast turn around of applications.
Many times, vendor financing programs are administered through a central support desk where your deals may be circulated through the hands of a number of different agents. Without some degree of familiarity with your business and the assets you are selling, the process is likely going to be less responsive than it otherwise could be or should be.
To find out how to tell if the vendor financing program you have in place right now can be improved upon, or to get an assessment of what type of vendor financing program best meets the requirements of your business and your customers, give us a call and we will perform a complete assessment and provide recommendations for your consideration at no charge or obligation to you.