Is It Really Possible To Get Financing For Private Sales?

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Sometimes you just cannot find the equipment that your business needs through conventional channels. This may be because it is a highly-specialized piece that is hard to find, or because manufacturer or supply-chain delays are making it difficult to source. It could be that the best deal on the equipment you need for your business is a nearly new piece that is for sale by the owner. When you need to consider alternate sources to get the equipment your company needs, you might think that this means you are going to have to pay out of pocket. But there is a financing solution that can save you from having to make a large cash purchase that ties up your working capital. That solution is private sales financing.


What Is Private Sales Financing?

Private sales financing is a business solution for companies to acquire the equipment they need even if it is not through an authorized dealership or known vendor. When the equipment is only available through a private seller (another business or an individual), you cannot take advantage of leasing or loans that could be available through established vendors. But by working with a company that offers customized financing solutions, you can hold on to your cash and get the equipment you need with a manageable monthly payment strategy.


The Benefits Of Private Sales Financing

In addition to not having to make an expensive cash purchase and tie up your cash flow, there are other benefits to private sales financing:

      • Find The Right Equipment
        As you know, many businesses have established lines of credit with particular dealerships and vendors. It is tempting, when the credit is available, to purchase through them even when their prices or equipment options aren’t ideal. When you have an alternate financing solution available to you, you are not tied to making your equipment purchase through a particular vendor because they are the only company that offers you financing. You are free to purchase equipment that is the most suitable, economical, and efficient equipment available, even if it is from a private seller.

      • Beat The Competition
        If the equipment you need is back-ordered, delayed in shipping, or in high demand, it is likely that your competitors are having an equally hard time sourcing it too. When you find a great deal at auction or through an online resale platform, or limited stock of the equipment you need becomes available at the dealership, you need to move fast. A private sales financing contract can be pre-approved and your financing partner can be ready to move quickly with you to secure the scarce equipment before your competitors do.

    Choose The Right Equipment And The Right Private Sales Financing Partner

    There are a couple of things to consider when you are exploring your options for a private sales financing partner. Ask your financing solutions company these questions:

    1. Do you offer more than one option for financing?
    Ideally, your financing partner will be able to customize a financing solution that works for you. They should understand your business needs and goals and offer loan options, leasing options, and even sale-leaseback strategies with manageable payments and flexible payment schedules.

    2. Do you work directly with the seller?
    This is not a must-have, but more of a nice-to-have. When your financing partner facilitates the purchasing process with the seller, their expertise and experience will ensure the transaction is more efficient, faster, and more secure.

    3. Do you pull lien searches on the equipment?
    A great financing partner will pull title searches on the equipment you want to purchase to make sure it is free and clear of any liens or encumbrances. They should also complete market comparable reports and other due diligence to protect you from a bad deal.

    4. Can you move quickly?
    Much of the time in business, but especially when you are scrambling to purchase hard-to-find equipment, time is of the essence. The most ideal private sales leasing partner will be willing to pre-approve your business then act fast as soon as the scarce equipment becomes available. Working with financing companies with drawn-out application and approval processes could jeopardize your purchase.

     

    Private Sales Financing Solutions With First Capital Leasing

    Whether you need new equipment because you are just starting out, you need to replace old and outdated equipment, or you need specialized equipment to grow your business when the gear you need is hard-to-find, you need a financing solution that is flexible and fast. First Capital Leasing offers private sales financing solutions that can be tailored to your company’s needs and budget. Don’t lose out on the best deal for the equipment you need, opt for private sales financing.

    Have you already purchased expensive equipment because you needed to move fast to get what you need? Are you now looking for ways to increase your available capital? Learn more about First Capital’s sale-leaseback option.

    First Capital Leasing is a full-scope financial services provider with the knowledge and experience to create tailored financing solutions that meet your needs and your goals for your company. We can help you figure out which strategy can support your current operations now and in the future. We are based in Calgary, but serve business across Canada. For easy application and quick approval, fill out our online application. You only need to apply once and First Capital leasing will continue to be your financing partner for all your business equipment needs. Approval can usually be completed in less than 4 hours!*  If you are ready to explore loans and leasing for your business, call our team at First Capital Leasing at 1-888-251-3644 or fill out our contact form today.

    * Subject to credit approval

     

    FAQ

    Q: I already purchased my farm equipment and now I wish I had leased it. What can I do?
    A: First Capital Leasing offers sale-leaseback plans. You sell the equipment you own to us, and we lease it back to you at competitive rates. This frees up significant working capital that can be invested in expanding your business. 

    Q: How does my business explore private sales financing with First Capital?
    A: Our process is simple:

        1. Choose the equipment and the seller of your choice. Confirm the full asset details, along with the cost. 
        2. Complete our online application, which is instantly submitted to our credit team. Existing customers do not need to re-apply.
        3. Once approved, a First Capital team member will contact you to discuss your financing options. We will then contact your supplier to arrange for invoicing of the purchase. Documentation is then provided for your review. 
        4. Upon receipt of all required documentation, our funding team will work on payment remittal to the supplier. We can accommodate any prepayment or deposit terms the seller requires.

      If you have any questions or need more information about which First Capital financial solutions might be right for you, call us at 1-888-251-3644 or fill out our contact form today.

      Q: I need a piece of highly specialized equipment. I have found it for sale at an upcoming auction. Is there a financing solution for this?
      A: First Capital Leasing offers auction financing. With our simple application process, you can be pre-approved prior to auction day so you are ready to bid. Just provide our expert team with the details of the equipment you wish to purchase and we can guide and support you every step of the way. To learn more, read How Auction Financing Can Get You The Equipment You Need.

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