When a vendor offers a vendor financing program, rather than having your customers look elsewhere for equipment financing, they can come directly to you to get it.
In addition, because the vendor's finance program is more under your control, you can create better opportunities for your customers. You can also count on repeat business, since they already deal with a finance company you work with, they assume the process will be the same, simple experience they had the last time.
TIP: Do not allow your customer to become solely responsible for figuring out how to finance the Equipment purchase.
With 1st Commercial Credit, you'll establish an infrastructure within your company that will allow you to essentially become a "bank" that provides some form of financing to your customers. A vendor finance program benefits your customers and business owners as it helps increase sales by reducing the restrictions for customers to buy from you.
When vendors choose to partner with an equipment financing company, they can offer more customized terms than your competitors. Through our vendor finance program, businesses have the option of providing the needed equipment and a financing solution to all of their customers.
Otherwise, without a vendor finance program, your customers will only have a few options:
If these options are not available to the customer, they cannot purchase from you. On the other hand, you can provide unique financing solutions to your customers while eliminating a customer's reasons for not buying from you. Simply providing another alternative for them to make a purchase is the first step in increasing your sales. If your business is not offering a vendor finance program, you're missing out on potential sales.
When someone only has the cash flow to work with, equipment purchases will be out of their reach. But if you give the option to pay with credit (and use your vendor financing program), it will suddenly feel like they have a much larger wallet to work with. Before implementing a vendor finance program, business owners must research their market and industry to ensure that it's an intelligent decision to integrate into your business infrastructure.
Vendors have to look at the customer base and their market to understand whether or not it makes sense to implement a vendor financing program in the company's services. If you're selling equipment over $25,000, the answer should be yes.
Many different factors will determine whether or not it's a smart move to add vendor financing to your business. Therefore we recommend consulting with equipment finance professionals to help you go over all the advantages.
A vendor finance program will make sense for your business if you want to improve your overall sales. The quickest and safest way to implement a vendor finance program is to consult with an equipment finance professionals like 1st Commercial Credit. As an equipment vendor, you're going to have to decide if you want to use your own money to lend out, work with a bank, or an equipment leasing company when the occasion arises. Working with a solid vendor partner program like a 1st Commercial Credit can bring the most benefits for business owners with its flexible and fast approvals and competitive financing rates.
This type of finance program is good if you want more control over the equipment financing sales process, increasing customer service, sales, and profits. You can consult with 1st Commercial Credit about providing equipment financing services in your specific industry. We will advise you on the most efficient finance program to implement. 1st Commercial Credit will help you:
Why Offer Equipment Financing?
Many businesses need to purchase equipment to keep up with their operations and orders. This equipment is necessary for daily operations and helps a business grow, expand, and improve efficiency. Unfortunately, for many of these small and medium-sized businesses, the equipment cost may be out of their budget. 1st Commercial Credit offers unique solutions for vendors to create a new income stream by providing financing to their customers.
Equipment for a company doesn't involve just heavy machinery. IT costs and software are considered equipment, and companies spend a considerable amount on these two. Companies can get the equipment they need through loans from equipment financing lenders. These loans provide flexible access to cash to obtain equipment when your business needs them most. 1st Commercial credit helps vendor businesses to offer financing so their customers can purchase their equipment with the best equipment financing for their unique business needs.
An EFA is a loan that allows companies to make monthly payments for a predetermined period to pay for equipment. At the end of the term, the company will own the equipment. Additionally, a portion of the payments made towards the loan can be written off on your taxes for qualifying equipment. This is an excellent alternative if you are convinced you’d like to keep the equipment, mainly because there is no residual due at the end of the agreement.
TRAC leases are a specialized version of open-end leases primarily for automobiles and light-duty trucks. TRAC can be a capital or operating lease and is an arrangement featuring a final rental adjustment on the lease, which will occur after the vehicle is removed from service and sold. TRAC leases are a predominant form of leasing for large corporate fleets in the US and Canada. Because the vehicle market is so volatile, these leases tend to be much more flexible than most by allowing the payments to be adjustable depending on price fluctuations.
An FMV lease will provide the option to renew the lease, return the equipment, or purchase the equipment at the end of the lease term. The fair market value is based on the market price of the equipment at the end of the lease. FMV leasing offers a flexible financing solution that enables business owners to access the latest equipment versions without the nuisance of ownership. At the end of the term, business owners will usually have the option to purchase the equipment at the current FMV or choose to continue making their lease payments and using the equipment.
• This type of leasing will typically offer the smallest monthly payment options out of most leases.
• Useful for those looking for flexibility and low monthly payments.
A $1 buyout lease is a type of capital lease, meaning you own the equipment or property throughout the lease and after the lease term is over. A $1 buyout lease can also be called a capital lease or an equipment finance agreement (EFA). The lessee makes monthly payments that will cover most of the initial cost of the equipment throughout the entire lease with the expectation that they purchase the equipment for $1 at the end of the lease. When it comes time to make monthly payments, the $1 buyout lease resembles a lease more than a loan, but your $1 buyout lease won’t have stated interest rates like a loan would. Instead, you’ll make fixed payments, and the finance charges get rolled into your payments. You may be able to get 100% financing with no down payment and fixed payments. The equipment is owned from the time of purchase, and it appears on the balance sheet, similar to a loan. Business owners purchasing equipment tend to like $1 buyout leases because they’re streamlined, straightforward, and easy to understand.
• Virtually the same as an equipment loan or EFA.
• Some of these will leave the $1 buyout optional.
• Useful for those who don’t want the potential down-payment of a loan.
Vendors can benefit from our finance programs with:
1st Commercial Credit is an equipment and technology loan firm offering financing and leasing programs to vendors. These services will help vendor businesses take advantage of opportunities to boost sales, retain customers, and grow profits. Work with 1st Commercial Credit experts who understand your business and bring a professional approach to building a plan to help you achieve your goals. We know every vendor is different, and that is why we offer evaluations to find the solutions that will work best for you and your clients. We offer equipment finance agreements, software solutions, capital leases, leases and loans for various asset types, and step-up payments.