Being an equipment vendor, you bear the disadvantage of being approached by unknown finance and leasing companies that want to become your partner. This may probably make one fact clear to you: a company that has the time to call you 200 times in a week isn’t exactly the best company that you should partner with. When you sell any equipment, your customers will expect that you offer financing from reputable financing companies. But do you really know to choose the right one? What criteria should you consider? Read on to get a few pointers to forge a successful relationship with a leasing and financing partner.
Criterion #1: Integrity
The biggest question that looms in front of you would be as to whether your customers will be treated in an honest manner. Unscrupulous players are simply not welcome. There has been many a scary story on that front when equipment vendors have lost their clientele. There have been companies that gave the clients proposals much costlier that what they had initially promised. Clients have lost high amounts that they paid up as deposits. Ultimately the worst affected was the equipment vendor and his business for having directed his customers to someone that ripped them off.
To keep this from happening, it is a good idea for the equipment vendor to do some serious research about the financing and leasing company on the Internet before signing up as a partner. Going through reviews from customers is another good idea. However, it is also true that there are customers that register complaints even against the best companies. This has to be borne in mind when making a partner choice. T is a good idea to look out for a pattern that emerges out of the complaints. The lousy companies have scores of complaints.
Criterion #2: Good quality communication
The two most important factors that contribute to a successful partnership between the equipment vendor and a leasing and finance company is that firstly, the partner company should be willing to communicate with the equipment vendor company and its customers and, secondly, the communication should be good.
Generally it is observed that when the leasing company offer finance at a rate that is high, or in cases when the customer application has been rejected, their reply is brief and they expect the equipment vendor to communicate to the customer. This puts the vendor to great difficulties.
In case an eligible customer id decline financing by the leasing company, the best way in which such a situation can be handled is for them to explain the reason for the rejection and also suggest another resource that the customer can try out.
In case the customer is going to be higher rates than expected, they would explain it to the customer themselves and not allow the equipment vendor to take on the unpleasant task.
Criterion #3: Education
It is simple to understand that customers who have a good credit score are offered good interest rates by the financing companies. However, there are others that get the approval for financing albeit at higher interest rates. The manner in which this is handled by the finance and leasing partner is a major factor that will decide whether you, an equipment vendor, will be able to sell your equipment or not. It would make a lot of difference if the customer can be made to understand that this would be rate that would be offered by any other competitor company in the market.
Clear answers to questions such as the amount of revenue that the business would generate through using the equipment, the profits that would ultimately be realized and whether the purchase was worth it for the customer after all costs were factored in worked out by the finance and leasing company would be greatly appreciated by the customer.
Criterion #4: All-rounded programs
For those companies that sell new equipment or have only filtered customers that have credit scores of over 700 plus, there may not much of a problem to obtain finance from leasing and finance companies. As an example, such applicants can get their cases approved in a matter of minutes by big companies such as GE Capital.
The sad truth, however, is that in a majority of cases it happens that if a reasonable number of your customers are buying second-hand or used or old equipment, who are new to the business, who do not have a good credit score that puts the finance and leasing company at ease, then the requirement is for someone to negotiate and still help them to get a deal. The equipment vendor should latch with leasing company that can help clients that have an ‘A’ credit score as well as others who are challenged with lower credit scores (those with A – D credit window). Such companies will also be willing to work with start-ups.
No finance company, no matter how creative, will be able to help an applicant that is very poor and also has a bad credit score. It should also be kept in mind that there is no finance company that can help every person that seeks finance for purchase of equipment. The vote should go in for a partner that is able to institute a financing arrangement for a wide range of situations. The equipment vendor cannot afford to run round in circles every time a customer needs financing for purchasing equipment.
Criterion #5: Easy for the customers
An observation made by analytical experts in this field reveals that different customers that want to buy equipment prefer to apply using different methods. Whereas some of the customers are comfortable applying online, some others are not. Yet some others ask if they can apply using the telephone. Faxing the filled up application form is yet another preferred method of applying for equipment finance. With a majority of citizens being ne-savvy, applicants are ready to email the application to the company. For the vendor company, the best partner would, however, be the one that is ready for each one of these options.