| Imagine a world of higher sales and improved margins. A business environment where you can overcome a buyer’s budget or cost objections. A fast and easy sale where a customer doesn’t worry about a lack of cash or inability to borrow money from its bank.
Vendor financing programs provide distributors, dealers and sellers the capability to offer customers a convenient way to acquire their products at the point of sale. One prominent Fitness Equipment Dealer, a distributor of commercial strength and cardio equipment, believes it would be out of business without this financing tool as over 65 percent of its sales are generated through a vendor financing program with Baycap. A few of the key benefits vendor financing provides this distributor include:
- Improved vendor cash flow through pre-funding, or financing of the down payment, and reduced receivables through collection of the balance upon delivery of the product
- Margin protection and bigger sales by focusing the customer on monthly payments instead of price reductions
- A faster selling cycle – fewer worries about whether your customer has the money in its capital budget or if they can (or will try to) find financing on their own
- Transfer of the financing risk to a third party through non-recourse programs
- The ability to open up new markets [including selling outside the United States]
With programs that can provide financing in amounts as little as $5 thousand, vendor financing can be implemented to cover most asset types and a variety of customer credit profiles including start-ups and early stage companies. For amounts up to $100 thousand (and higher), many financings can be approved in as little as four hours by completing a one page application. Approvals can be obtained as quickly as two business days following the submission of financial statements and tax returns for larger transactions. Lease terms can extend to 60 months for equipment with long useful lives.
A nationwide Fitness Equipment Manufacturer feels that the flexibility, creativity and extraordinary support it enjoys through its vendor financing program with Baycap gives it a competitive advantage. Choosing the right programs and leasing company can be the difference in winning a sales competition. A few questions to ask in selecting the best leasing company for your business include:
- Flexibility – Can the financier fund my A, B & C credits? Can soft costs be included in the financing amount? Will all credits be financed without recourse to the vendor?
- Minimums and maximums – How small and how large of a deal can the financier fund? Any limitations on how much credit it can extend to any given buyer? Any overall minimum or maximum volume requirements to create a program for your company?
- Creativity – How many different programs structures and end user offerings can the financier provide? Will the financier create unique programs to meet the special needs of certain customers?
- Service – What levels of support do you require for sales, marketing, administration and deal structuring? Do your customers require a personal touch or will a highly automated system be a better fit with your sales methods?
If you can visualize your company as a one-stop solution provider to your customer’s needs through having the ability to offer fast and easy equipment financing, then vendor financing may provide you with new and profitable opportunities.
Contact Baycap today at 877-992-2922 |
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Non-Recourse
UNL
Guaranteed Buy-Back
Re-marketing
Recourse
Holdback |
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