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Key Details About Using A Vendor Finance Program

Posted On: March 8, 2018 author Paul Kendall

Have you thought about using a vendor finance program?

If you are looking to improve the number of sales then a vendor finance program can be the solution. It will give your customers another option to help them purchase your equipment.

So where do you start?

To help you implement your own vendor finance program I’m going to take the time to talk to you about details of a vendor finance program and how it can help your business.

Details About Having A Vendor Finance Program

So you’re interested in learning more about having a vendor finance program. Before we dive into the nitty gritty, let’s start off with...

What Is A Vendor Finance Program

A vendor finance program is a lending program where a company lends money to be used by the borrower (customer) to buy a property or products like equipment and machines. It is a program meant for helping vendors increase sales by giving your customers more options.

That sounds well and good… but what does it really mean?

Let’s walk through a example. You’re looking to have your business sell more equipment. One of the objections that one of your customers may have is that they want to preserve their capital instead of buying expensive machinery.

With a vendor finance program, you can offer your own financing. That way the customer can preserve their capital and still have the benefits of using the equipment.

A vendor finance program will help improve cash flow and liquidity for the vendor. While the vendor improves these cash flows and liquidity, the program will be able to provide your customers predictable, low monthly payments along with some flexible pay structures.

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Benefits Of A Vendor Finance Program

There are a lot of benefits you can get from a vendor finance program.

  • You can increase your return on investment.
  • You get to increase your revenues by having repeat sales.
  • You can also be able to close sales easier when you have this program available. This is probably the biggest benefit you can get from a vendor finance program.
  • The vendor finance program will help “unlock” the capital normally locked in the unsold equipment. You’ll then be able to manufacture more equipment or make additional investments into your business.
  • You can also gain interest payments through the loan. You’ll be earning interest on the balance of the loan through the course of your borrower’s repayment period. Often the interest payments will be greater than traditional financial institutions, allowing you to make a return on the borrowed funds.

 

Why You Should Get A Vendor Finance Program

Besides the benefits I’ve already listed, there are several reasons why you should consider a vendor finance program that is coordinated outside your own business.

Boost Productivity

A vendor finance program helps you boost your business’ productivity. Having a financial partner help you manage your vendor finance program removes the administrative burden of managing your own equipment financing. It eliminates the need to hire new employees.

 

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Increase In Communication Through A Web Portal

A good vendor financing program partner will provide you a web portal. A web portal can provide you with up-to-the-minute status updates. Communicating with your clients will be faster than ever since you can easily respond whenever you receive the updates.

You can have your efficiency increased through using a full-service approach with only one point of contact. You can also get a consistent communication and even have a streamlined life cycle application.

Easy Payment Solutions

A customized vendor finance solution from a trusted partner will make it easy for your customers to upgrade and finance additional equipment. This will make it easier to get repeat sales for your business.

Selecting A Vendor Finance Program Partner

When selecting a partner to help you with your vendor finance program, you need someone who will act as your one stop source for financing. They need to be able to both provide customized solutions and be able to work with those with weaker credit.

Trust Capital USA can be that partner. Trust Capital USA provides sales/marketing support, application processing, quotes, reports, credit underwriting, pricing, and even documentation. You’ll also be provided an up to the minute status so you won’t get left behind.

Trust Capital USA will also provide a captive finance program. This is where they make the vendor finance program look like it’s coming from a department of own business. It will look like you are providing the financing.

Having a full-service approach lets you access a wide selection of premier funding sources. Even a full suite of financing products that meet your client’s specific needs can be easily achieved.

Trust Capital USA will find a financing solution that is right for you and your customers. This will help drive up your sales as you’ll get an increase in approval and closing percentages. What more is that Trust Capital USA will streamline the entire funding process for you.

Final Thoughts On What Is A Vendor Finance Program?

Having a vendor finance program for your business has a lot of benefits, the most important being that you increase your sales. That’s why I took the time to both list out the benefits of a vendor finance program, and also told you how you can have a program like this for your own business.

I expect that you learned what you were looking for about having a vendor finance program. But if you have further questions, don’t hesitate to reach us at 866-458-4777.

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