Some of these benefits include:
Get rid of sticker shock and become a closing tool: All equipment sellers deal with customers who cannot afford to pay for equipment upfront. That's precisely why offering monthly payments when selling equipment is an excellent option. Offering a payment option keeps you ahead of the competition and closes more deals.
Cuts decision-making delays: Payments expand purchasing power and can help a buyer go from wondering and hesitating to going for the purchase.
Increases add-on sales: Monthly payments opens doors to additional options, add-ons, maintenance agreements, and more.
Equipment loans for vendors can be facilitated by banks or equipment financing companies to fund the purchase of large pieces of equipment. By taking a loan to purchase equipment, your customers can preserve cash in the short term by spreading out payments over some time. In addition, the purchased equipment can be used as collateral so the borrower can get better interest rates. Your clients choose equipment loans to buy equipment that will retain its value, such as:
• Commercial vehicles: Different types of vehicles, box trucks, and vans.
• Heavy machinery: Tractors, construction, and manufacturing equipment.
• Specialized equipment: Medical equipment, including X-ray and diagnostic machines.
• Other equipment: Restaurant equipment, professional office equipment, software, etc.
Offer convenience and solutions: Your customers will experience and enjoy the ease and speed of equipment financing. Your customers will benefit incredibly from your financing options to obtain equipment. Some of these customers facing the following situations will come to you:
There are many advantages to providing options for customers with equipment loans. Still, whether offering finance to customers is the right option for you depends on your business and situation. Business owners understand how crucial it is to obtain, upgrade or replace the equipment quickly to perform daily business tasks, and they will appreciate having payment options from their vendors. Purchasing equipment out-of-pocket can put a substantial strain on their cash flow. Still, offering equipment loans can be the ideal solution to keep your business functioning and grow to meet increasing demand.
1st Commercial Credit can provide vendors with:
Equipment financing for vendors provides their customers the possibility to obtain a loan that can be used to purchase business-related equipment, such as software, vehicles, or printers. When a business owner takes out an equipment loan with a vendor, they will need to make periodic payments to the vendor, including interest and principal, over a predetermined term. As security for the loan, you (the vendor) will require a lien on the equipment as collateral. Once the loan is fully paid, the business owner will own the equipment free of any lien. Vendors can impose a lien upon some other business assets or require a personal guarantee. Suppose a customer fails to repay you the loan. In that case, you could repossess their business and personal assets.