3 Criteria for Selecting a Financing Program Vendor for Your Customer
As a manufacturer, you may be in the position of needing to find a financing provider for your customer. Similarly, if you’re a franchisor, you may need to do the same for your franchisees that need to purchase equipment for the business. Helping customers make purchases from you easily and efficiently will increase your sales while strengthening the relationship.
Your customers have choices, both bank and non-bank, but knowing what to hone in on will help you make the best recommendations possible. Here are three of the top considerations you and your customer should look for when it comes time to selecting a finance program vendor.
- One-stop shop: Making equipment acquisition as easy as possible for the customer is the ultimate goal of any vendor financing program. If you can work with a finance partner that can manage all parts of a program, life will be much easier for the customer. With one contact point for all functions – from upgrading equipment to dealing with a late payment – your customer can avoid the hassle of working with multiple contractors. A strong finance partner will act in an upfront, open manner with your customer.
- White-label programming:
White-label, or private-label, financing is when a third party provides funding under your company name. Working as an extension of your company, the finance provider typically brands itself with your company name and logo, or develops a coordinating identity. This can be advantageous to your customer, who then can deal with just one entity for everything related to equipment purchases. In addition, a smart finance provider with a white-label program will train its personnel in your business and your customer profile. They’ll be able to truly understand business models, goals, risks and challenges, and develop individualized programs for your customers. - More than financing: You can offer customers a standard financing program. You also can go a step further and offer an actual finance partner, one that makes it a priority to learn your business and design financing programs to meet specific goals. They’ll help your customer analyze program options and will teach your sales staff how to incorporate financing as a sales strategy.
When talking with finance program companies, keeping your customers’ needs and perspectives front of mind will help guide you to smart recommendations. Asking questions and listening carefully will help ascertain if a finance company really can serve in the capacity of a true partner. When you do find such a provider, it will be invaluable to both you and your customer.