A business that does vendor leasing allows its clients to directly lease the equipment it is selling. Vendor leasing basically removes the need for a third-party loan provider, like a bank or a loan company. This leasing model typically requires a deposit and also a promise of payment in installations from the client. The client might also compensate the vendor with shares.
Vendor leasing can make a few of your most expensive and high-end products much more affordable to your clients. This is particularly true for clients who are new business owners and lack sufficient credit to borrow significant amounts of money from a financial institution. We will give you great rates, and provide equipment leasing for your start-up businesses.
However, vendor leasing is not very typical among equipment vendors. Vendor leasing exposes the equipment vendor to take the risk, as the client can default at any time. That is why the vendor often uses collaterals and fees with higher interest rates than what a financial institution would. We provide working capital for your business with the use of your account receivables.
How A Vendor Leasing Program Can Help
Given the inherent risk involved with this transaction which equipment vendors hardly have the financial expertise and sources of a financial institution, vendors tend to shy away from vendor leasing.
Partnering with an equipment leasing and also financing business that offers a vendor leasing program can find a solution and help you close more sales. A vendor leasing program offers several advantages that offset the risks that come with this venture:
A lot of flexible payment plans: Many equipment vendors are not equipped to directly support leasing for their clients. Through vendor leasing programs, a third-party leasing and financing company can help vendors come up with tailored monthly payment plans that comply with their distribution method.
Client Engagement: An equipment leasing and financing company can work with your clients directly to settle on leasing options and also closeout sales. Not just does this service save the equipment vendor time and documentation, but it can also help the vendor build a stable pipeline of loyal, trustworthy clients.
Advertising and Marketing Strategy: Top-end equipment leasing and financing companies also help you drive sales by getting involved in your advertising and marketing efforts. An experienced firm can develop your advertising and marketing products, boost the availability of your leasing and financing solutions, and refine your pricing estimate equipment and strategies.
While the vendor leasing program provided by an equipment leasing and financing company can not directly take on the risks associated with vendor leasing, the financial and marketing resources that come with this solution can help you better assess risks and secure even more beneficial sales.
An Efficient Strategy To Enhance Equipment Sales
An equipment vendor that offers vendor leasing will always have an edge over those that can not. The capability to sustain a more flexible payment plan for the client is often a difference-maker in closing sales. A new business owner with lower credit rankings specifically depends upon vendor leasing to obtain premium equipment at an affordable price. Having a vendor leasing option in place can open your business to a whole new pool of clients.
Partnering with Lease Funders to release the first and only vendor leasing program you will ever need. With 21 years of experience leasing and financing equipment in the USA, Lease Funders offers competitive rates, flexible credit guidelines, and innovative equipment leasing programs, to provide you with the best customer service in the industry!
Get in touch with us at 1-888-308-7160 for more information or visit the lease funders' official website to sign up to be one of our vendors!