What Is A Dealer Leasing Program?
A dealer leasing program can be defined in two different ways.
One definition would be where an equipment dealer provided an equipment lease to their customer, effectively becoming the financing company in the process. The dealer would own the asset during the lease period and provide the equipment for the customer’s use in exchange for established leasing payments.
The other definition would be where a dealer introduces the customer to an equipment leasing program administered by a broker or leasing company representatives whereby the customer would effectively finance the acquisition of a piece of equipment to be purchased from the dealer through an equipment leasing company.
This last definition relates to what we do which is to set up dealer leasing programs to service the needs of a dealer’s customers.
Is There A Difference Between An Equipment Leasing Program Versus An Equipment Financing Program?
Equipment leasing is essentially a form of equipment financing, although some people will use the term equipment financing to relate to equipment loans versus equipment leases.
With an equipment loan, the customer owns the equipment and owes a loan balance to a lender.
With an equipment lease, the leasing company owns the equipment and provides the customer with use of the equipment in exchange for established lease payments.
What Is The Main Benefit Of Our Dealer Leasing Programs?
The leasing programs we put in place for a dealer to service their customers provides the financing necessary to complete the purchase and sale process for customers that qualify for financing.
This will allow deals to close faster which will potentially lead to more sales and higher profits over time.
How Does A Dealer Go About Getting One Our Dealer Leasing Programs In Place?
The first step is to fill out a dealer profile that outlines how long you have been in business, lists trade references, and provides a summary of your business model including the types of equipment being sold, monthly sales volume, annual sales volume, product returns, sales warranties, and the percentage of sales that require equipment lease financing.
The second step is outline your customer profile in terms of your typical customers length of time in business, financial viability, and credit worthiness.
The third step is for us to perform a credit evaluation of the company which may include a review of your financial statements to better understand your financial strength and your ability to stand behind any sales that are made.
All this information is reviewed to determine what leasing company or companies would be best suited for 1) the type of equipment you sell and 2) the type of customers you deal with most often.
If a lease financing program is feasible, we will then set up an application and administration process that you can introduce your customers to if they require equipment financing at the time of making a purchase from you.
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