Funding Success - $1,500,000
A top manufacturer located on the East Coast has trusted us to take good care of their clients and finance their production machinery. The sales average $1M, and we provide VIP-level service.
A vendor financing partner you can trust
When did it become so hard to find a financing partner who actually cares about increasing your sales?
Your customers need reliable and professional financing. That’s what we at Equipment Leases are here to do.
We have been in business since 2013, providing various types of financing to a multitude of businesses. With our vendor financing program, we have you covered from start to finish.
Becoming a partner with Equipment Leases
Making financing easier than ever
Securing capital doesn’t have to be a long, arduous process. Our vendor support program streamlines the process in a few short steps:
- Fill out a free quote on our website.
- Qualify—often within hours.
- Get to work doing what your business does best.
In addition to a fast approval process, there are several reasons to choose Equipment Leases as your vendor partner:
Take a load off and let us do the work
From the application to securing your financing, we handle all the work for you. We don’t believe our partners should have to do the heavy lifting, especially when deals are to be made and sales are to close. Our intuitive online tools make it easier to view your financial information and keep track of important sales metrics.
Say goodbye to hidden fees with your seller financing
While other partners love to tack on extra fees, Equipment Leases has earned a strong reputation as transparent and trustworthy.
We believe honesty is the best policy. That is why we do everything we can to make the process simple and easy to understand, and we provide premium service if issues arise. This allows you to focus on your customers, and you can rest easy knowing they have financing options to keep your sales coming.
Financing businesses of all shapes and sizes
Equipment Leases is proud to have partnered with several great businesses. Across various industries, we work with large and small operations alike to secure vendor financing. Whether you are a mom-and-pop shop, start-up, or multi-million dollar company, we are eager to work with you to achieve your business goals.
Your customers are waiting
Since 2013, Equipment Leases has partnered with businesses to help them finance their goals. Our seller financing program is no different.
If your customers don’t have financing options, they will undoubtedly choose a competitor who does. Our program allows you to create options and value for your customers, saves them time, and boosts your profit. Here, that’s what we would call a win-win.
We’re here to help you and your customers. Fill out a free quote today, and we will help your business get on the best track to growth.
Vendor Financing - A Comprehensive Guide
Definition and Explanation: Vendor financing, also known as seller financing, refers to a financing arrangement where the vendor or seller of a product or service provides financing to the buyer. This allows buyers to acquire goods or services directly from the vendor with deferred payments, installment plans, or other financing options. If the vendor is cash-rich, this is an ideal way to make money from your money. If not, that is where Equipment Leases come in. We qualify the clients, approve the financing, and then wire funds to the vendor for 100% of their invoiced amount.
Purpose and Benefits: Any savvy vendor with a product to sell should also ensure he has a few options for their clients to buy. Using a third-party lender is a fantastic option if the buyer needs more cash or wants to protect his money if the economy takes longer to recover. Vendor financing usually increases the closing ratio and the average ticket price increases.
Types of Seller Financing: Vendor financing, often referred to as trade credit, can be tailored to meet the needs of each client, including extended terms, deferred payment leases, and seasonal leases. These options are designed to fit the buyer’s budget and make buying decisions easy.
Process and Requirements: Obtaining vendor financing typically involves assessing the buyer’s creditworthiness, negotiating financing terms, and completing necessary documentation. Depending on the specific arrangement, requirements may include credit checks, down payments, and collateral. In the case of Equipment Leases, we finance 100% of the client’s products, including soft costs such as shipping, training, and installation.
Advantages of Vendor Financing using Equipment Leases:
- Increased Sales Opportunities: Vendor financing can significantly expand a vendor’s customer base by making products or services more accessible to a broader range of buyers.
- Competitive Advantage: Offering vendor financing can differentiate vendors from competitors who only accept upfront payments or traditional financing methods. It also provides a significant advantage in closing more sales through creative ways to get their product financed.
- Improved Cash Flow: Vendor financing allows vendors to have a higher closing ratio and a more consistent cash flow.
- Customer Loyalty and Retention: Financing options foster stronger customer relationships, enhancing loyalty and encouraging repeat business.
- Tax Benefits: Depending on the jurisdiction and specific arrangements, vendors may benefit from tax advantages associated with vendor financing. Specific financing structures may offer deductions or incentives that can lower vendor tax liabilities.
Disadvantages of Vendor Financing if they are self-funded:
- Higher Costs: Vendor financing often entails additional costs if the vendor uses their capital compared to upfront cash transactions. Vendors may incur interest charges, administrative fees, or the opportunity cost of tying up capital. These are mitigated with a third-party lender with significant dollars to invest and underwrite each transaction.
- Dependency on Buyers’ Creditworthiness: Vendors assume the risk of buyers defaulting on payments when providing financing. Dependency on buyers’ creditworthiness increases the potential for financial losses, especially if buyers experience financial difficulties or economic downturns.
- Cash Flow Constraints: Extended payment terms associated with vendor financing can strain vendors’ cash flow, particularly for small or medium-sized businesses with limited financial reserves. No vendor wants to chase a bad debt, so EQL handles it all, and the vendor/client relationship remains strong.
- Administrative Burden: Managing vendor financing agreements requires administrative resources and expertise. Vendors must handle credit checks, documentation, payment processing, and collections, adding complexity and administrative burden to operations.
- Legal and Regulatory Compliance: Vendor financing arrangements are subject to legal and regulatory requirements governing lending practices, consumer protection, and contract law. Non-compliance can result in legal disputes, regulatory penalties, reputational damage, and vendor financial liabilities.
- Market Volatility and Economic Uncertainty: Economic fluctuations, interest rate changes, or market instability can impact the viability and profitability of vendor financing arrangements. Vendors may face challenges in forecasting cash flows, assessing credit risk, and adapting to evolving market conditions.