If you’re a vendor of high-priced equipment, then you understand that it’s often challenging to close a sale with clients not willing (or able) to pay all the capital upfront.
That’s the reason why as a vendor, you need a vendor leasing program.
A vendor leasing can help in preventing your clients from walking away from your company without making any purchase. That’s because this type of leasing allows your client to use the equipment even without shelling out huge payment.
Having a vendor leasing program is like having a captive finance company. The only difference is that the leasing applications are handled by a seperate company.
Vendor leasing program can significantly help you close more sales. Most business owners understand the risk of spending their capital for purchasing costly equipment. Money-wise, they understand the value of leasing their equipment.
Again, a vendor leasing program is a working relationship between you (the vendor) and a financing company who comes up with financial solutions for your customers. Hence, it is immensely vital that you make a partnership with a reliable and reputable finance company.
In this blog post, I’ll talk about how to find the right finance company like Qupital SME Loan for your vendor leasing.
Find a Financing Company
Doing a deep, honest assessment of your business or company is the first vital step to perform prior to finding the right finance company. That is because the qualities and services offered by the finance company should match the needs of your business.
Also, financing companies like Qupital SME Loan usually have criteria or requirements for their client.
Financing companies often make partnerships with companies or individual vendors that are capable of repaying them.
After assessing your company or business, the next thing you’re going to do is to find a reliable financing company.
Tips in Assessing the Financing Company
You could find a lot of financing companies online, Qupital SME Loan is one. But remember, not all financing companies are the same. Each company differ in terms of financing programs, payment options, and requirements.
As part of the marketing cliche, most of these financing companies will promise you to deliver good results. But in reality, they’re the ones who are benefiting from the loan instead of their client.
You might also want to consider asking the following questions before making a partnership with a financing company:
- How long have you been operating in this industry?
- How many partners, clients, and employees do you currently have?
- How are your services different from other financing companies?
- Can you describe the screening process for your clients?
- What risks are there for your clients that may cause a breach in the financing agreement?
- What happens if your client breaches the financing agreement?
- Can your company offer the best terms to our customers?
- Do you have any partners or clients for third-party references?
The answer of the financing company to the questions above can help you determine if they’re the right partner for your vendor leasing. However, don’t rely heavily on the answers that you’re going to get from them.