Why Do Vendors Choose A Vendor Leasing Option?

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Vendors choose a vendor leasing option because it leads to greater sales for the vendor and greater customer satisfaction. Vendor leasing options are a way for companies to finance the product that will elevate their business and allow them to grow. Vendor leasing options allow for managed cash flow, lower up-front costs, less reliance on banks, greater tax benefits, and more. By leasing equipment that a company would otherwise have to outright buy, it allows companies to continue their growth without massive capital expenditures. Here are the top reasons why vendors choose a vendor leasing option.

The Benefits Of A Vendor Leasing Option

Lowering Up-Front Costs. Offering monthly payments to your customers can minimize potential price shock. Explaining the benefits and features of a product will help with sales, but offering the client use of the equipment without paying the entirety of the cost at once will make them less hesitant to invest in a higher quality product instead of one that is lower in price but that they may not be satisfied with owning for a long period. Paying through installments means they can use the equipment to generate more sales and revenue, thus allowing the products to help pay for themselves.

Cash Flow. Vendor leasing allows companies to keep cash or bank lines available to preserve working capital for other aspects of their business, whether that is for covering expenses such as payroll or for expansion.

Acquiring Equipment Without Relying On Banks. With vendor leasing, the lease is secured against the asset instead of requiring financing from a bank. This allows customers to avoid the limits set by banks and to cut out the bank as a middle man and feel as though they are not constrained.

Tax Benefits. Leasing can be considered an operating expense as opposed to a capital expense, which can offer potential tax benefits. Leasing can provide quicker write-offs and allow internal approval of expenses faster.

No Wait For The Next Capital Budget Cycle. When working with larger companies, they may have the cash available to buy equipment outright, but they require approval requests and budget cycles that may not align with your company’s selling cycle. By quoting a monthly payment instead, there is no need for the company to secure funding for a capital expense.

Vendor Leasing Allows For Upgrades. Since the lease will have a determined end, you know when the next refresh point for your next sale will be. When the lease ends, you can offer newer, up to date technologies that have come out since the lease was originally signed. This is a great way to make sure your customers are always getting the newest, top of the line product instead of getting frustrated with outdated equipment down the road. Offering companies a lease with an automatic refresh point allows them to use the most current and efficient technology, particularly for companies that function within the IT and computer engineering industries.

Join The First Capital Leasing Preferred Vendor Program

If you are an equipment manufacturer, a dealer, or a retailer who wants to increase sales while simultaneously increasing the sales of your customers and fostering a loyal and satisfied client base, then you should join the First Capital Preferred Vendor Program. The First Capital Preferred Vendor Program will support your overall business objectives and allow you to shorten your sales timelines, eliminate financial barriers to equipment purchases, and build customer loyalty, helping you stay ahead of the competition. With over 85 years of combined experience in the industry and a close ratio of 95%, 

the First Capital team can increase your sales and profits by at least 30%. If you’re looking for vendor financing options, contact First Capital Leasing about our Preferred Vendor Program at 1-888-251-3644 or fill out our online contact form.


Q: What are some benefits my company will receive when working with First Capital, specifically?
A: Some of the benefits you’ll receive when you work with us include: 

      • Prompt payment of invoices 

      • Greater repeat business 

      • Enhanced customer loyalty 

      • Competitive edge over your competitors 

      • Higher customer retention

      • Increased margins

      • Equipment cost

    Q: What kind of benefits will vendor leasing offer?
    A: Partnering with a vendor financing company will allow more of your customers across Canada and North America to afford your products over a longer period of time. You will also foster loyalty among your customers by getting them the equipment they would otherwise be unable to afford.

    Q: How do I start working with First Capital Leasing?
    A:  Simply fill out this one-time online contact form to partner with us.

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