Does Your Business Need To Vendor Leasing Program For Your Customer Equipment Purchases?
It can go by many names, but a vendor leasing program or vendor financing program is a pre-qualified financing opportunity for your customers who are going to require financing or want to utilize equipment lease financing to complete their purchase from you.
A vendor program basically means that the seller has gone to a leasing company or consultant, provided a detailed profile of their company, product offering, and profile of customer so that the leasing company can quickly assess and hopefully approve financing for their customers.
While a vendor or dealer leasing program does not guarantee a customer financing, it does greatly speed up the process of trying to secure financing by having a pre-qualified and highly relevant lender or leasing company receive an application for financing for equipment they are already comfortable with, provide by a vendor that they believe is financially stable and able to support customer sales transaction.
The best vendor financing or vendor leasing programs tend to be the ones that are run through equipment leasing specialist who have relationships with enough leasing companies to cover off the spectrum of credit that may occur in your customer base.
By sending customer deals through an equipment leasing specialist that has already pre-qualified the assets and vendor with a variety of lenders, the customer is more likely to be working with the right type of leasing company faster, increase the probability that financing can be put in place in time to close the sale.
Vendor financing program through equipment leasing companies is very common in North America, especially for vendors that have large product lines, ahigh volume of sales and customers requiring credit.
Get Vendor Equipment Leasing That Meets Your Business Needs
That being said, vendor financing can also be set up for a single product company. But the key to any vendor financing program is going to be regular sales volume that makes it worth the leasing company’s time to provide more specialized attention to any particular vendor versus business applications received at large.
In order to set up a vendor financing program, the seller will likely have to have been in business for more than a year and have a track record of completed sales without any significant after sale issues.
Further, the more the item or items being sold can be considered to be a commodity, the more likely vendor financing can be arranged. Failing that, the seller will have to be financially stable in order to deal with remarketing and repurchasing requests that the leasing company may have.