VENDOR FINANCING
Why offering equipment financing sells more equipment
A monthly payment turns a capital decision into a budget decision. Here is what that does for your customer, and what it does for your close rate.
FOR YOUR CUSTOMER
What financing does for the buyer
No matter the size of the business, equipment financing changes the arithmetic of the purchase. These are the six benefits your customer hears about on the phone with us.
01
Keeps cash and credit lines open
The equipment is paid for from the revenue it produces. Cash and the bank line stay available for inventory, payroll and the next opportunity.
02
Low upfront cost
Normally the first payment, or the first and last, at signing. Not a large deposit on top of the purchase.
03
Payments matched to cash flow
Fixed payments over a term chosen to fit the business, so the cost is known on day one and does not move with rates later.
04
Financing for the whole package
Installation, shipping, software, training and warranties can roll into one lease. The customer buys the complete solution from you.
05
Stay current
Leasing lets a business run higher-end equipment and upgrade when new models release instead of nursing obsolete gear.
06
Tax treatment
Lease payments are generally deductible as a business expense, and Section 179 can apply to equipment the business buys. Their tax advisor confirms which fits.
FOR YOU
What it does for the vendor
01
Close while the customer is in front of you
A buyer who leaves to find financing has time to change their mind, or to find a competitor who offers it. A payment on your quote keeps the decision in the room.
02
Bigger tickets
When the price is a monthly figure, the upgrade, the accessory and the service plan are a few dollars a month rather than a lump sum. Customers buy the equipment they actually want.
03
Paid in full at funding
We buy the equipment from you and pay you directly. Collecting the monthly payments is our job, not yours.
04
No paperwork on your side
We take the application, run credit, prepare and collect the documents and fund the deal. Your time goes to selling.
QUESTIONS
What vendors ask before they start
When does the vendor get paid?
At funding, in full, directly from American Capital Group. Once your customer signs and confirms delivery we release payment to you. You are never waiting on the customer's monthly payments.
Who does my customer deal with?
Your customer completes a short application, on our site or on a private-label page carrying your logo, and an ACG account executive handles everything after that: credit, documents, signatures and funding. You are kept informed at each step.
What if the customer is declined?
We tell them ourselves, professionally, and we look for a structure that works before we say no. A decline is between the customer and us. You keep the relationship, and the sale can still close for cash.
Can financing cover installation, software and training?
Yes. Soft costs such as installation, delivery, software, training and extended warranties can be included in the lease, so the customer buys the whole package from you rather than the bare equipment.
Do I need to learn leasing to offer it?
No. Your part is to put a monthly payment beside the cash price and introduce us. Any question you are not sure of goes straight to your ACG account executive, who answers it for the customer.
Keep reading
The vendor program
What a vendor account includes, and the form that opens one.
Dealer financing
Programs built for equipment dealers and distributors, with private-label applications.
Eight objections
The reasons vendors give for not offering financing, and the answer to each.
How it works
The eight steps from a quote with a payment on it to money in your account.
Ready to put a payment on your next quote?
Set up a vendor account and an ACG account executive walks you through the first deal. Or write to vendor services and ask anything first.