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Paul Kendall
Becoming a successful business owner is one thing, but becoming a leader in your market is an entirely different ball game. Of course, you need to be able to understand the fundamentals to running a business in order to become a leader, but there’s much more involved in becoming a market leader.
Whether you’re just getting your start in the market or you’ve been around for a while, anyone that has what it takes can truly become a leader in their local market.
It takes a certain kind of person, entrepreneurial skill sets and resources that will allow you to become a market leader. And one tool you can utilize is heavy equipment financing.
Let’s say you’re a capital equipment salesman and you want to become a market leader and increase sales for your company. Where do you start?
What Is Heavy Equipment Financing?
Heavy equipment financing is a form of financing that is specially designed for heavy equipment, as the name implies. It allows business owners to speed up the process of their business and begin utilizing heavy equipment before they have the cash on hand to purchase or have a higher internal rate of return and should invest their cash back into their business.
Without heavy equipment, some businesses are unable to do business to begin with. Heavy equipment financing gives them the resources to purchase the equipment that will allow them to make money.
Using Heavy Equipment Financing to Become a Market Leader
Heavy equipment financing is a great tool to enhance businesses succeed further, but you can also use it to help take and control a larger share of your market.
For starters, heavy equipment financing literally gives your customers the funds necessary to start doing business or do more business than they have been doing up to this point. Heavy equipment financing gives them access to more tools, better equipment, and access to greater opportunities in their market.
If you’re selling capital equipment, having access to heavy equipment financing can mean increasing sales and showing your customers a path to a faster return on their investment.
As we’ll discuss below, you can also combine heavy equipment financing alongside private label
financing to create greater financial flexibility to your clients and customers.
Types of Equipment Lenders - What’s the Difference?
With all the types of financing that’s available out there, how do you know what kind of financing organization to work with? Overall, there are three categories of lenders: direct lenders, brokers, and direct lenders who can also broker.
When thinking in terms of heavy equipment financing, we’ll touch on the basics of each of the three so that you can get an overall idea of which may be best suited for your business.
Direct Lender
A direct lender is an individual or heavy equipment financing companies that offers their own deals, using their own money to provide you with heavy equipment financing. Some companies may have monetary thresholds that they’ll accept financing requests from.
For example, some heavy equipment financing companies won’t take on a loan exceeding $100,000 while others may require a minimum of $75,000 before considering helping out.
As direct lenders are in a way an independent source of heavy equipment leasing, they have a much more limited choice in funding options compared to other alternatives. However, because they have more direct access to the funds they’re giving you, they should have a much faster process for approvals and funding your vendor.
Broker
You can look at heavy equipment financing brokers as an individual or group that helps you find heavy equipment loans.
A broker differs from a direct lender in that they don’t have direct access to the funding you’re looking for. This isn’t a bad thing because it means that they have the ability go out and find different sources of funding, which translates to a greater flexibility in the kind of offers that you get.
If you might not be able to get certain kinds of deals from normal financing institutions (such as a bank) for any number of reasons, a broker may be able to put together an offer for you that meets your needs.
Brokers are good at helping companies that need heavy equipment financing bad credit and used heavy equipment financing with no age restrictions.
Direct Lender (who also Brokers)
The third category for heavy equipment finance companies is a direct lender who is also capable of brokering a deal for you. What this means is that not only can they offer direct lending to you with their own funds, they can also help you find outside financing if they don’t have the capacity to meet your needs.
We recommend talking directly with a financing expert to learn about which source of funding best suits the needs of your business so that you can make the best decision possible.
Private Label Finance Program
If you’re selling capital equipment and want to offer greater financing flexibility to your customers, a private label finance program can be a great addition to your business. A private label program is like adding another company’s finance resources and expertise, but keeping it entirely under your brand’s name.
This allows you to have more control and flexibility for your customers while securing more opportunities for a sale for your business. Reducing the number of hoops a customer has to jump through (such as getting financing from an outside source) can increase the likelihood that customer will close the sale with you.
Are you ready to learn more about heavy equipment financing and how it can help your business at different stages to become a leader in your current market? We’ll help you understand the ins-and- outs of construction equipment financing, the different kinds of funding sources, as well as how a private label finance program can help you get ahead in your market.
Use our heavy equipment financing calculator to calculate how much your customers heavy equipment financing payments could be and how much heavy equipment they can afford to buy based on their monthly budget.
Feel free to call Trust Capital and speak with a heavy equipment finance specialist at 866-458-4777 about increasing sales with heavy equipment financing.
