Vendor Financing Programs: 5 Ways to Gauge the Service Level You’re Getting
Vendor financing program providers, both bank and non-bank, abound. Rates are a key piece of the offering, and can be competitive. But if you’re an equipment manufacturer looking to boost sales, or a franchisor looking to help franchisees acquire equipment, you know that vendor finance programs are about more than rates.
Customers are your No. 1 asset. Service to them must be at the top of your priority list. But how do you gauge the level of service that you’re getting? These five factors can help you answer that question.
1. Degree of flexibility: You may have one quarter with a singular large deal, requiring voluminous forms and paperwork. The next quarter you could have a large number of smaller purchases. Whatever the situation, a vendor financing program provider that is flexible, and able to close sales when you need it, is critical to excellent customer service and retention.
2. Speed: A financing company that has ample resources – and an entrepreneurial mindset – knows how to quickly set up programs, handle credit decisioning and document processing, and make fast payments. Working with agility means taking care of administrative changes swiftly, without taking up valuable customer time.
3. Creative, smart thinking: Good service goes beyond putting together and managing basic financing programs
4. Private labeling: Does the provider offer white-label finance programs? And if so, with what kind of servicing does the provider offer? Private label, or white-label, financing is a program in which a third party offers equipment financing to your customers under your company name. When your financing company can do this, it acts – or should act – as a seamless extension of your company. It’s an excellent way to help you differentiate from competitors, and helps build your brand.
Part of this occurs through branding. The provider may present itself with your company’s name and logo, or with a coordinating identity. While that’s a first step, a finance provider will show its true mettle in how it works with your customers, day in and day out. The best will spend resources on training. They’ll make sure their employees are well-trained in your business. They will also be able to train your sales professionals to incorporate financing options into their sales strategy. In many cases, the finance partner will attend in-person or online customer meetings, accompany sales reps to trade shows and participate in webinars.
5. Convenience: Can the finance partner serve as a one-stop shop to handle all aspects of the financing program? A solid finance partner will communicate clearly, accurately and frequently with you and your customers. They will provide reports and timely updates, and keep you informed of your pipeline. And when a customer wants to upgrade equipment, it’s one call, with an expedient answer. Plus, with a one-stop shop, the ability to take care of multiple functions, such as late payments and collections, means avoiding the need to work with multiple contractors.
Vendor program financing is all about making equipment acquisition easier – for your customers and for you. Top-level service from a finance program provider is a “win” for everyone, and will help you close more transactions and retain customers for years.