From the desk of:
Brent Finlay
Business Financing Specialist

If you are an equipment vendor, dealer, or reseller, then there is a good chance that a vendor financing program is going to very important for your business.

Vendor equipment financing provides your customers with immediate financing options for the equipment they want to purchase from you in the form of an equipment loan or lease.

The right customer financing options will contribute directly to both faster sales closings and more sales overall compared to just a cash sale offering.

At the same time, if you have an equipment leasing option that does not provide a high percentage of customer credit approvals, then it can do more harm than good so its important to assess what makes the most sense for your business.

Lets start the assessment process by going over the different types of vendor financing programs out there.

The Benefits of Working With Equipment Brokers That are Financing Specialists are Considerable

First, getting the customer approved for financing with the most relevant financing source as quickly as possible is not only going to close more sales faster but it also going to increase customer satisfaction as the customer will appreciate being able to come to one place for both their equipment and financing.

Part of the way that broker financing can increase the close rate is in getting the process completed quickly as the more time the customer has to shop for options, the more likely they could be lost to competitive offerings. In highly competitive markets, the turn around time on equipment leasing application is critical to the profitability of any particular vendor or dealer.

vendor financing for bobcat loadersA second benefit is that a dedicated broker will provide greater consistency to the overall process which will be reflected in the ability for the customer or buyer to get financing in place in a timely basis. With a one funder vendor program, customer typically will be calling into a service desk where each time they call or have a communication by phone or email, they end up speaking to a different person. Not only can this become highly frustrating dealing with multiple people that may not be seamlessly working together, but it can also cause delays that either jeopardize the sale or erode customer confidence of both.

The third benefit is that less straight forward deals require greater experience to arrange financing and that is more likely to be accomplished through and equipment financing and leasing broker who works with lenders that collectively cover the whole market versus a customer service rep that only works within the narrow confines of the single program they are administering for the funder they work for.