Vendor financing is a tool used by equipment dealers to obtain financing for their clients. If your business involves selling equipment to business owners, then you should find an equipment financing company that can supply you with several different equipment leasing programs to help you get your clients financed.
In this article, let’s talk about the basic facts that you need to know about this method of financing and how you can use it to close more sales!
The Equipment Leasing Broker – Vendor Relationship
Companies that sell business equipment often seek out equipment financing companies so they can have a means getting those clients financed.
Many equipment dealers use these leasing programs as part of their sales arsenal. Everyone knows its easier to sell a $300 payment instead of a $15,000 cash sale.
Equipment leasing programs allow dealers to do just that. Sell the payment.
Then, of course, there are numerous benefits to the clients that choose to lease their equipment. But we will leave that for another article!
Bottom line, equipment leasing offers a way to overcome price objections and provide financing for their customers while they are there on their premises.
By being able to provide financing to their clients. An equipment dealer gains the additional advantage of being a one stop source to their clients.
Every salesperson hates having to see a potential sale walk out the door. If you don’t have the means to provide financing for your clients you are allowing them to walk out the door and into the showroom of an equipment dealer that does! Equipment leasing helps you close the sale immediately!
Choosing Your Equipment Lease Broker
Companies that offer vendor leasing services may offer different financial packages to suit the demands of their vendors.
If you are in a seasonal business, make sure your leasing partner can offer your clients financing that is repayable only during the seasons they work!
If you work with a lot of new businesses, make sure they can approve start up businesses!
Interview your leasing partner and make sure they can finance the type of equipment you sell. Learn about their programs, some questions to ask:
- Do you finance my type of equipment
- What kind of credit must the client have? Remember not all leasing companies will finance start up businesses or businesses with bad credit!
- What is their process? For most leasing companies it’s application only up to $50,000 for established business (3+ years and good credit)
- How long will it take for an approval?
- Once the approval is given what is the process? Will there be a site inspection needed?
- How do they send out their docs? Many leasing companies are using electronic docs but not all! As equipment leasing brokers, our first priority is to get your clients the best rate, then we look at the bank to see if they have electronic docs or not.
- Do they use a lease proposal? They should! A lease proposal helps lock your client in since it requires first, last and processing. It’s all refundable except a small application fee. But you know the client is serious when they sign and execute a lease proposal.
- How and when will you get paid? Most leasing companies pre-fund. Which means they will pay you all or part of the deal up front.
If you are currently not working with an equipment leasing company, or not satisfied with the company you are working with check out our equipment vendor program!
We will be happy to help you create a program or many vendors send us their declined deals and we help them get those closed!
Call Us! 1888-308-7160
About the author: Liz Roberts is an equipment leasing broker that specializes in getting start up equipment leasing and providing articles in finding solutions for Leasefunders.com. For more information on our vendor leasing programs or for an overview of all our programs, please visit leasefunders.com.