Once a company has decided to finance its AIDC, mobile computing or POS equipment through a subscription service, or hardware‐as‐a‐service (HaaS) program, the steps needed to roll out the program are quite simple. It all comes down to doing a bit of research ahead of time. Digging into the details before an agreement is signed will make the process go more smoothly, help companies to partner with the right provider, and ensure transparency throughout the financing term.
Here are three steps to easy equipment financing.
Step 1: Choose a Financing Provider
While pricing and terms are usually a top priority for choosing a provider, there are several other things to consider that will have more impact in the long run. As a company evaluates its options for financing providers, there are qualities to look for to make sure the provider is the right fit. As with any partner or supplier, reputation and track record are key.
The financing provider should have longevity and credibility in the industry, with a proven performance record that comes from extensive experience and customer satisfaction. Not many financing providers have industry‐ and equipment‐specific knowledge; most are industry‐agnostic. It’s important that equipment financers show a demonstrated understanding of the industry, manufacturers, and the equipment and residuals in order to give customers lower payments and more flexibility. A good financing provider is constantly aware of market forces and can advise their customers and adapt to changing technology. They are aware of the changes in how companies do business and the consolidation of manufacturers. If the financier has strong relationships with manufacturers, distribution channels, and reseller channels, they understand their customers’ worlds and can facilitate the process smoothly.
If they offer a HaaS option, that simplifies everything considerably. HaaS is a revolutionary concept that can include not just hardware, but also staging, kitting, configuration, deployment, repairs, spares pool management, and a help desk in a customized package with one convenient monthly payment. At the end of the term, companies can elect to continue subscribing to current hardware or seamlessly upgrade to the latest and greatest new equipment. The best financing providers put the customer first — allowing companies to choose what services are best for them, rather than force them to select from pre‐determined plans.
That seamless operation should extend through the entire process, including the rollout of equipment, the potential addition of equipment and services as a company scales up, and end-of‐term options. Flexibility is vital because each company’s priorities and needs are unique.
Companies will benefit from choosing a mobility equipment financier that makes life easier for them.
Companies should choose financing providers who have:
- Product and industry expertise and relationships
Step 2: Outline the Details
Once a provider is selected, it’s time to nail down the details and term of the service program. What equipment is needed? How many of each product is needed? Which hardware, software, accessories, and services should be included in the package? The company should be clear on what is needed at the forefront.
Finding a balance between a company’s budget and the lifespan of the equipment they plan to finance should determine the length of the financing term. For example, if a device’s typical lifespan is three years, it wouldn’t be prudent to have a five‐year term, as the device will already be obsolete when the term ends. The financing partner should have the background knowledge to know the residual value of the equipment at term‐end and recommend a good length of time while keeping costs down for the provider.
Questions to Ask
- What are my end‐of‐term options?
- Are there fees or other obligations when the equipment is returned?
- Is it possible to extend the term on the equipment?
- Can I extend the term on only some of the equipment and return the rest?
- What’s the cost to purchase the equipment?
- What’s included (maintenance, hardware, software, installation, etc.)?
- Where are my documents located? How is equipment tracked? Is there a portal available to view the details and logistics of the financing program?
Step 3: Review All Terms, Sign, and Go!
Once everything is outlined, the financing company will put together package pricing options and terms that fit the company’s needs, budget, and priorities. Don’t sign the paperwork until everything is carefully reviewed. Look at what’s included in the agreement, the length of the term, the processes, and each party’s responsibilities. Make sure everyone is on the same page, and then put pen to paper. The financing company will perform a credit evaluation, then turn around the documentation and initiate the purchase order for the deployment process. Interested in learning more about easy equipment financing? Fill out the form below, and our experts will get in touch with you.