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Vendor Leasing Program Expectations

“For A Vendor Equipment Leasing Program, Vendor Expectations Can Make A Big Difference”

Vendor equipment leasing programs are almost essential if you are in the business of selling new or used equipment to your customers.

Unless all your potential sales are going to be for cash, the customer is going to need equipment leasing options, which is where you vendor equipment leasing program comes in.

The first challenge for any equipment leasing program is making sure that there is a good match in terms of what the lease company programs have to offer and what the needs of your customer are.

But a second consideration, running closing behind the first is the sellers expectations of exactly what any one vendor leasing program can deliver.

When we speak of delivery, we are talking about the amount of customer information to get a deal approved, the turnaround time of the application process, and the percentage of customers that are financed from all of those that apply for financing through the program.

If the expectations are too high or unrealistic, then the customer is likely going be disappointed with the outcome at times, which can cost the vendor sales.

When you’re working in a competitive market place, like equipment resale, there is going to be a lot of competitive pressures to close the business as quickly as possible, so its easy to get into a habit of establishing expectations with the customer in regards to what your vendor equipment leasing program can deliver that are too aggressive or unrealistic.

The best way to avoid this from happening and to increase the effectiveness of a vendor equipment financing program is to invest the time with the financing company or companies you are working with to intimately learn what will be required to get financing in place as quickly as possible.

This information must be then passed on and trained in your sales reps so that the customer expectations can be kept in check which will help build and maintain the business reputation over time.

Vendor Equipment Leasing Programs Will Improve Over Time

If you have a new vendor financing program in place, the odds are that it will deliver more value the longer you work with your financing partners, provided that the program is a good fit for your business.

Any relationship takes time to develop, and a business relationship with your equipment leasing source for your customer is not going to be any different.

The more both sides learn about each others business, the better the communication and information flow will become, and when there are problems, they will get resolved faster when knowledgeable people are involved.

Unfortunately, expectations get set too high from the beginning of a relationship, causing a vendor to bounce from one vendor program to another, and not getting the true benefit from providing this service to their customers.

Business financing of any type can be challenging to get into place at times, but far easier when everyone is working together with the same information and expectations towards a common goal.

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What Is Vendor Leasing

“What Exactly Is A Vendor Leasing Program Anyway?”

A vendor leasing program is a prequalified financing referral that an equipment dealer or reseller can provide to their customers.

What I mean by a prequalified financing referral is that the equipment leasing company involved in a vendor program has assessed the assets being sold by the dealer or reseller and the amounts the assets are being sold for, and is open to providing financing to interested parties for the reviewed assets.

The leasing company (or companies as the case may be) has also qualified the dealer or reseller as an entity that is financially viable and capable of providing after sales service and product support to the end customer.

This last point is very important to any leasing company as they own the asset through a lease financing agreement, so if there are any issues with the equipment, they want to be able to contact the dealer or equipment reseller and get help to solve the problem.

A leasing company is also going to want to understand the basic credit profile of the average customer of the dealer as well as the number of transactions that occur each month where financing is involved, the average transaction size, and so on.

Once the dealer has been prequalified for a vendor leasing program, then the leasing company is prepared to accept applications for financing by the dealer or reseller’s customers.

The actual financing process is still based on approved credit of the customer and does not involve the equipment dealer or reseller unless the dealer is providing some form of recourse to the equipment leasing company to reduce their financial risk on any given deal.

Vendor Leasing Programs Are Designed To Speed Up The Equipment Lease Financing Process

So while a vendor financing program doesn’t actually provide financing directly by the vendor or dealer, it does streamline the process for applying for equipment lease financing through an equipment leasing company that is prepared to finance the assets in question, from the vendor selling the equipment.

A properly set up vendor program can get funding approved in a matter of hours, provided that the customer meets the lease funding criteria of the leasing company.

Without a ready source of financing to apply to, the customer is left to try and locate something themselves, which is going to take some time and could put the deal at risk.

And when a customer contacts an equipment leasing company, they likely won’t know right away if the assets they want to finance and/or the dealer they want to work with,  will be acceptable to the leasing company.

And while a well designed vendor leasing program can help close sales and increase profits, a poorly designed one can have the opposite effect on the business.

To find out more about the vendor leasing programs we can put together for you, please give us a call and we’ll get all your questions answered right away.

line Optin-Form3Call 289 816 0075 and Speak Directly To An Equipment Leasing SpecialistOr Click Here To Send Us An Email

Click Here To Speak To an Equipment Leasing Specialist
For More Information On Vendor Leasing Programs