Why Financing Matters
Everyone loves a great deal. Whether it’s “0% interest” from an automotive manufacturer or a “Buy Today & Pay Tomorrow” promotion, special financing has been used for decades to boost sales across countless industries. If you’re a manufacturer or distributor of commercial equipment, offering payment plans can help you:
- Close more sales, faster.
- Provide a one-stop shopping experience.
- Make acquisitions more budget-friendly for business customers.
Gain a Competitive Edge
Your commercial customers—just like everyday consumers—appreciate convenience. When you present financing options alongside cash offers, you’re giving them a straightforward way to manage their budgets and cash flow. By contrast, if your competitors already have a financing partner and you don’t, your sales team may be at a disadvantage.
A dependable financing partner should:
- Understand your industry and equipment.
- Bring a true desire to invest—meaning quick assessments and funding decisions.
- Support your sales team and engage quickly with prospects.
The more your financing partner understands your products, markets, and customers, the better they can help you close deals.
What to Look For in a Financing Partner
Financing companies typically fall into three categories:
- Independent (like Summers Engineered Capital), which are often more flexible and nimble.
- Bank-Owned, which can be more rigid due to regulatory burdens.
- Captive, closely tied to a manufacturer (e.g., John Deere Financial).
All these companies fund transactions using the capital markets—either to expand their resources or spread risk. Independent finance companies tend to be more adaptable; bank-owned ones might face sudden policy changes that leave customers in the lurch.
Captive Financing: The Ultimate Integration
Forming your own captive equipment finance company can be an ideal scenario if you’re looking for:
- In-depth product knowledge that matches your equipment’s features and lifecycle.
- Integrated sales and service, with a seamless brand experience (e.g., XYZ Equipment and XYZ Capital).
- Promotions and customized programs designed exclusively around your equipment line.
- Long-term relationship focus, fostering repeat business and brand loyalty.
- Full alignment with your OEM strategy, allowing you to accelerate new technologies or gain market share.
Ready to Explore a Captive?
Over the years, our team has consulted with manufacturers and distributors on the merits of creating captive financing arms. We’re open to an introductory conversation on:
- How to structure captive financing, leasing, and rental programs.
- Consulting engagements for more detailed guidance.
- Potential joint ventures for qualified manufacturers or distributors, leveraging our resources and desire to invest.
Whether or not it leads to a formal partnership, we believe an initial discussion can clarify opportunities and shed light on the best path forward. [{Click here to read more on forming a Captive.}]
Get in Touch
If you’d like to learn more about:
- Using equipment financing as a strategic sales tool, or
- Exploring captive financing for your organization,
we invite you to Email Us. We look forward to helping you Connect Capital to Opportunity and maximize your equipment sales.