Are you an equipment manufacturer, dealer, or retailer who has seen your sales activities level off after a certain point? By making your premium products more affordable and marketable, a vendor leasing program may be the solution you need to rejuvenate sales and set your business apart from your competitors.
A vendor leasing program is a partnership between an equipment vendor and a third-party lender that makes equipment leasing to your customers possible. Equipment leasing can be a great benefit for your business, allowing potential customers who may have been priced out of your products more able to afford the equipment they need.
First Capital Leasing’s Vendor Loyalty Program is among the most effective vendor leasing programs across Canada and the US. Our financial advisors will work with you side by side to help you formulate a profitable equipment leasing program that respects your distribution strategy and brings your clients closer to your business.
What Is Vendor Leasing?
Vendor leasing describes a relationship in which a third-party leasing and financing company and a vendor work together so that the latter can offer leasing opportunities to customers.
A vendor leasing program is predicated on the assumption that vendors would like to lease their equipment but cannot afford to do so. A sound vendor leasing program is structured to ensure the survival and profitability of the vendor even as it receives lower monthly payments from its customers. A vendor leasing program may even entail having the leasing and financing company fund the vendor directly, granting enough capital to allow the vendor to set up leases in the first place. In this case, the vendor may receive a lump sum from the leasing and financing company for every asset it moves while the customer makes recurrent payments to the latter.
But why would a vendor want to lease its equipment in the first place? That is because leasing can help grow a vendor’s customer base. Lower monthly payments mean that otherwise unobtainable products are now affordable for customers with lower capital. The fact that customers need not go through a bank to obtain leasing further adds to the appeal of equipment leasing.
Equipment leasing is an option that many customers would love to have and that many vendors would love to offer but cannot. A vendor leasing program bridges this gap, satisfying both parties.
Benefits Of A Vendor Leasing Program
A vendor leasing program can allow you to lease your equipment and help your business make more money, but what does that really mean? Here are some concrete benefits your company can enjoy when you offer equipment leasing:
Increased order size: Because your customers are now making lower payments, they can afford more equipment in one go. Factoring interest for each article, you could be making substantially more money in the long run.
Increased customer loyalty: What happens when your customers pay off their lease? They renew it, of course. If your company offers equipment leasing, your customers are more likely to come back.
Increased customer base: Now that you offer leasing, customers who were previously priced out can now afford your products.
Increased competitive advantage: Not every equipment vendor supports leasing; customers may realize that your company offers better financial options for their needs.
Making Equipment Leasing Possible Across Canada And The US
A vendor leasing program can be a true win-win for both you and your customers. By enabling equipment leasing, a vendor leasing program can make your products more attractive and affordable to customers一driving up sales and long-term profitability.
First Capital Leasing has everything you need to set up an equipment leasing option for your customers. Through our Vendor Loyalty Program, our financial advisors can help you come up with a model to lease your most profitable equipment to your customers while maintaining ample cash flow for your everyday operations. First Capital Leasing can even serve as your lending partner in Canada and the US and provide you with the funds you need to launch your first equipment leasing program.
Q: How can my clients apply for loans and leasing through your Vendor Loyalty Program?
A: First Capital Leasing will manage the paperwork, including providing your clients with customized loans and leasing applications that fit your business’ needs and timeline.
Q: What are the main challenges with vendor leasing?
A: The main challenge for companies who wish to offer a vendor leasing program is that they may not be able to structure their cash flow to support daily operations as customers are now making lower monthly payments. This challenge can be mitigated by partnering with a leasing and financing company like First Capital Leasing, which can provide sound financial advice and funding support to the vendor.
Q: How do I start working with First Capital Leasing?
A: Simply fill out this one-time online contact form to partner with us.