Any small business owner will tell you that it’s more important than ever to jump at any opportunity to increase your bottom line.
One of the simplest ways to do so is with a vendor financing program. Not offering financing to your customers could mean that there’s a very real chance you’re missing out on large number of deals. If your potential customers are on the fence about purchasing your medium to large ticket products, perhaps wary of the upfront expense or the commitment of the purchase, a leasing program could be just the thing to turn a potential buyer into another satisfied customer.
Before you can create a vendor financing program at your business, you’ll need to find a lender you can trust. Here are five big questions to ask any lender before you take them on:
What level of customer service will my customers receive? Whatever finance partner you select will be dealing directly with YOUR customers, so you’ll want to look for a partner that has dedicated account teams and a large number of customer service reps that can dedicate the appropriate amount of time to your customers. And, most importantly, the company should clearly express their commitment to customer satisfaction.
How flexible are your terms? The right finance partner will have flexible terms and programs that can be customized to fit each of your customers’ needs. Whether it is seasonal payments, payments geared to the revenue the equipment generates, or a specific buyout structure, find a company that will work as advisors to find the right solution for each of your customers’ unique needs.
How easy is the application process? Finance partners that provide an online application portal for your business make fast approvals for customers and access to the status of their applications super easy. Portals such as this can generate twice the number of finance opportunities for nearly ever vendor using it. The application process should be simple and painless with minimal documentation to get the process started.
How competitive are your rates? Affordable rates make for a pleasurable financing experience. This is where you will want to find a company that has the ability to directly fund deals for the most cost effective financing options. With almost any financing company, rates will depend on various customer attributes such as time in business, industry and credit history.
How fast can you get my customers approved? The quicker your customers get those approvals, the quicker you’ll get paid. Ideally you’ll want your customers to receive approvals within just a few hours.
Do you provide financing to your customers at your business?