Three Key Issues Have Created a Complex Selling Environment
Equipment vendor financing solutions have become more essential than ever, and for good reason. We are all aware of the many challenges facing the economy today, the impact on vendors’ sales cycles has been significant. Prior to the onset of these issues, lead times for equipment averaged four to six weeks. According to Gartner, companies are now quoting 200 to 300 days for certain types of hardware — and above 400 in some instances. But supply chain matters are just the beginning.
Labor also remains an issue, with many industries struggling to find the talent they need to stay productive. According to Instawork, 73% of warehouse operators are struggling to attract talent as demand continues to climb — making robotics a much-needed solution and an opportunity for equipment vendors. Capital is another key issue, with cash being plentiful before the pandemic. Today, companies have a pent-up need for refreshed hardware and equipment but fewer resources to obtain them. And with costs rising, the capital problem only becomes greater.
Fortunately, equipment vendor financing has emerged as a beneficial solution — not only for the customers that need robotics and other equipment solutions but also for vendors looking for ways to continue growing their businesses in this difficult season. Here, we’ll explore a few key advantages that financing offers.
Advantages of Equipment Vendor Financing Programs
Vendors Get Paid Sooner
For many companies, the ongoing supply chain issues led to delayed revenue due to orders not being delivered on time or only in part. Many companies had to start taking smaller orders, further reducing opportunities for growth. But by partnering with an equipment vendor financing provider, companies are able to:
- Provide customers with a complete solution for all of their hardware needs
- Lock customer rates, increasing the likelihood of larger upfront orders
- Close deals faster due to everything being included in one program
- Benefit from flexible scheduling, so if only part of an order is ready, you’re compensated for what you can deliver
Customers Experience Value Faster
The past two years likely added some serious service challenges to your plate: postponements, delayed orders, shortages, repricing, and more. With supply issues expected to continue well into the future, equipment vendor financing is a distinct solution that enables you to get the hardware your customers need sooner, and for less upfront investment. This means they experience greater value in working with you and in being able to enjoy greater productivity and uptime. Providing a financing solution benefits customers in that:
- They can choose from a few avenues for financing or leasing their equipment
- They are able to pay for their equipment via OPEX budgets instead of large, upfront CAPEX investments
- They can get the hardware they really need (i.e. they can afford higher cost equipment due to financing it)
- They get equipment that is available now due to greater schedule flexibility
- They can benefit from As-a-Service solutions, allowing them to include software and maintenance support
Technology is Refreshed More Consistently
And that means more revenue for you and greater value for the customer. With technology life cycles shorter than ever, customers need solutions that keep them productive — and you need a solution for increased sales. Equipment vendor financing solutions provide customers with a flexible solution that keeps hardware cycling in and out on the most ideal schedule possible. Here’s how equipment financing provides a better technology refresh strategy:
- With 3–5-year terms, financing results in predictable refreshes to keep customers productive and revenue growing
- Customers benefit from the latest technology on a cycle that doesn’t result in them falling behind
- Relationships grow between you and your customers because they’re ordering more consistently from you and are more likely to expand their program by working with someone they trust
Put Our Equipment Vendor Financing Solutions to the Test
At River Capital Finance, we’ve been providing a variety of financing solutions for vendors and end-users for decades. We offer capital leases, fair market value leases, As-a-Service programs, and more — all with the added flexibility of a master lease agreement structure that enables customers to quickly and easily add new hardware at any time. Whether you’ve been looking for a way to better serve your customers or have been struggling to increase deal flow due to recent events, our equipment vendor financing is the solution you’ve been looking for.
Ready to experience the River Capital difference? Connect with our team today to explore your options as an equipment vendor and to get started.
Don’t forget — download your copy of our latest ebook, Equipment Financing: A Solution for Vendors in Today’s Complex World, to go in-depth into the advantages of equipment financing.