From startups to global corporations and from cash-flush to cash-strapped companies, they all take advantage of and benefit from vendor financing. In fact, the Equipment Leasing and Finance Association (ELFA), reports nearly 8 out of 10 U.S. companies rely on some sort of financing to obtain equipment, which is used to grow their businesses and thus contribute to our country’s growth and employment numbers.
Global Financial & Leasing Services (GFLS) partners with vendors to offer their customers equipment financing in the following industries:
Why Do Capital-Rich Companies Finance Equipment Purchases or Leases?
There are many reasons. Financing equipment purchases or leases often is a part of a forward-looking, strategic financial plan. Keeping a large amount of cash on hand is attractive to banks and investors, plus dramatically increases the odds a company will survive an unexpected event, like a pandemic, natural disaster, etc.
The question arises, “If a company is in an attractive financial position, why don’t they seek traditional bank financing?” The answer is simple: big banks require a lot of application paperwork and can take weeks or months to decide whether they are approving or rejecting the loan. Companies don’t have that kind of time to waste, especially if they win a project, find a super deal on equipment or need to act quickly for any other reason. Not to mention, bank financing is just another added step. Vendor financing streamlines the process and can even remove any barriers your customers might have in the purchase or lease decision.
Financing an equipment purchase or lease comes with numerous benefits compared to making a large outlay of cash. And, by partnering with GFLS for vendor financing, your customers can:
- Typically get 100% financing without a down payment via ACH or wire
- Keep their working capital to fund other business objectives, such as expansion or increasing their workforce
- Benefit from tax considerations, like Section 179 associated with purchase financing
- Generate revenue with the equipment they finance
- Add additional costs such as sales tax, delivery and installation to the financed amount
- Build their Business Credit profile
What About Companies with Less-Than-Perfect Credit or Little Cash on Hand?
For these types of businesses, having the ability to finance the lease or purchase of the equipment they need can make or break the company. While they are not big banks’ target customers, they can be your customers when you partner with GFLS, which ultimately grows your sales numbers.
GFLS works with all credit tiers. Our financing decisions are based on a company’s story, not just the credit score. Our team gives decisions in 48 hours or less. This is very attractive for your customers who don’t have the time or desire to jump through big bank financing hoops or the credit score to make them creditworthy in big banks’ eyes.
With the Right Partner, Vendor Financing is a Win-Win
Your customers are going to finance their equipment purchases and leases. Rather than lose out on sales opportunities to competitors who do offer vendor financing, partner with GFLS and bring your financing in house or offer financing to your customers who aren’t or won’t be approved through traditional means.
Together, we can provide essential equipment, quick credit decisions and convenience with a streamlined application process. In the end, you’ll be providing a better customer experience for all, resulting in more sales and higher customer retention rates when it’s time to buy new or upgrade.
Bottom line: if anyone questions whether companies are interested in vendor financing, yes, Virginia, they really are.