Do You Have An Equipment Leasing Program
In Place For Your Customers?

Or, even a better question would be if you do have an equipment leasing program in place, is it well suited to the lease financing requirements of your customers, or is it costly you sales.Ok, lets start with the first question.

An equipment leasing program for your customers is when your business has an established relationship with one or more leasing companies that are capable of financing the type of equipment you have for sale as well as the typical customer financial and credit profile.

The customer must still qualify for the financing themselves, but the starting point becomes one in which they are working with a highly qualified leasing company that is seriously interested in providing financing versus starting from scratch with a lender or leasing company that 1) may or may not be very interested in the assets, and/or 2) that does not have any comfort level with the vendor selling the equipment.

To answer the second question, a poorly suited equipment leasing program can potentially do more harm than good.

For instance, if customers are being declined for credit more often than not, there is a good chance you’re going to lose out on the sale to a competitor that has a more suitable equipment leasing program in place.

In the end, the true measure of any equipment leasing program is the bottom line of your business … did providing a readily acceptable financing program generate more sales and profits for your business or not?

Equipment Leasing Programs Can Make Or Break A Deal

The sales process can be hard enough, but to add the unknown variable of available customer credit is going to just make it that much harder.

And while no equipment leasing program can guarantee you that your customers are going to be approved for credit, a good program should be able to provide a financing option for the customer’s consideration at least 80% of the time.

If that’s not the case, then your equipment leasing program is likely not covering off a broad enough spectrum of potential customer credit and financial performance.

The best way to either get an equipment leasing program in place, or to find out if what you already have can be improved upon, is to give us a call so we can provide a free assessment of your requirements as well as recommends for a equipment leasing program that is capable of helping get sales closed and profits earned.

Vendor Lease Programs – Lease Company Versus
Equipment Leasing Broker

What is the basis difference between a vendor lease program for customer equipment purchases set up and administered by a lease company versus a lease broker?

This is a very common question as these are really the only to avenues available to a business to set up a vendor lease program for their customers.

First of all, a lease company is one company with one set of leasing guidelines.  If your customer falls outside of the leasing companies criteria for say credit and financial performance, then the customer is likely going to go through the vendor financing program and get declined.

With an equipment leasing broker, the broker collects the initial information from the customer or from the vendor, and puts together a financing package that is going to be best suited for certain lenders.

In this situation, the customer has a much better chance of getting financing arranged quickly due to the fact that the broker is working with a broader spectrum of lending or leasing criteria.

The lease company or finance company direct to vendor model only has the potential to work well when you  have a situation where your customer credit requirements are very consistent from one customer to another, AND the leasing company is a good fit for that exact credit profile.

Are There Any Other Key Vendor Finance Program Differences Between Equipment Leasing Brokers And Leasing Companies?

Once again, if the credit criteria matches the customer, both can be a good fit in terms of qualifying for credit.

But the next thing you have to look at is turn around time and level of customer service.

Leasing companies tend to have a more generic level of customer services where you may need to change your business or sales model to fit the way that they do business.

With an equipment leasing broker, there tends to be more opportunity for the individual broker to customize the application and administration to more closely fit the needs of your sales process and the needs of your customer.

To have a highly effective and profit enabling vendor lease program, both the coverage of the customer credit spectrum and the level of customer service provided are going to be very important to get right.