The construction industry is heating up, and contractors and fleet owners are busier than ever. That means firms are buying and selling equipment at a rapid pace. According to economic forecasting and research consultant Off-Highway Research, global sales of construction equipment are forecast to grow +3.9 percent in unit terms in 2016.
Whether you are a buyer or a seller, access to equipment financing can be a game changer. For buyers, extending purchasing power gives you access to equipment that will help you secure your next big deal. For sellers, offering buyers equipment financing options is a value-added feature that can help increase sales.
According to the Equipment Leasing and Finance Association (ELFA), construction equipment accounted for 11 percent of equipment financing new business volume in the United States in 2014, a 6.7 percent increase, according to the 2015 Equipment Leasing and Finance Survey presented by ELFA.
Equipment financing is a win-win for everyone, if you choose the right partner. Read the tips below to learn how you can add equipment financing to your procurement or liquidation strategy.
Extend Your Purchasing Power: What to Look For When Choosing a Financing Option
- Trust—When seeking financing for your next purchase, do your research. Only work with a reputable company that has experience lending for equipment purchases. If this is a business purchase, make sure the lender works in business-to-business transactions. Does the company work with large national brands? If large companies can trust the lender, you probably can as well.
- Timing—Chances are, you need the equipment now, and you don’t have time to go through a lengthy process to be approved for equipment financing. Seek out financing companies that can offer fast approvals. Look for companies that commit to contacting applicants immediately following submission.
- Customization—Financing is not a one-size-fits-all solution. Be sure to choose a financing company that will work with you to develop a customized plan that meets your specific needs. Make certain your funds can be used whether you purchase at auction or use traditional retail methods, regardless of whether the purchase is made online or offline.
- Access—Once you have been given an line of credit, make sure you can access the funds at any time. It can take time to find the right piece of equipment—you don’t want to lose your piece just because you could not gain access to your funds.
- Ease—Working with your financing company should be easy. Choose a lender who will work alongside you to ensure a smooth transaction. Is the customer support team easy to reach? Are you assigned an account manager who is readily available and accessible? Only work with a financing company that ensures your needs will be met.
Offer Equipment Financing & Watch Sales Soar
When buyers have access to more capital, their spending power increases, positively impacting your sales. Buyers can research their own financing options, but also appreciate when sellers offer financing with purchases. Avoid pitfalls by following these simple guidelines when working with an equipment financing partner:
- Experience—Work only with a trusted financing partner that understands your business and your customers. Be sure the partner has experience in financing equipment purchases, whether at auction or through a traditional retail transaction. Choose a partner who works with other leading brands in your industry.
- Service—Offering financing should bring you more business, but it does not have to mean more work. Select a partner with a full-service customer support team for both sellers and buyers. Make sure you have access to a customer representative who will assist you as you complete transactions, and who will also provide assistance to buyers to ensure a smooth experience for all parties.
- Ease of Payment—Only work with a financing partner who can guarantee that you will get paid quickly and via the method of your choice at the end of the transaction. A good partner will work with you to determine your needs up front, and will provide assistance as the transaction closes to ensure invoicing and other details are finalized so you can quickly access your funds.
Equipment financing is a value-added service that has helped countless buyers to extend their purchasing power and has enabled sellers to see increased sales. Whether you are a buyer or a seller, equipment financing can dramatically impact your business.