"You certainly know your business and how it relates to what we need to have happen for our clients! We could not have done this without you. Your patience and flexibility made it happen. And thanks too for your appetite for the smaller deals as well. You have become a valuable tool in all my presentations. Your rapid response and reasonable rates make it easy to keep you in my speed dial! It is nice to work with someone who treats the little guys with the same great respect the mega-deals receive. We look forward to a long and mutually beneficial relationship with you."
- President, Washington Equipment Vendor

Now that the national economy appears to be in a cyclical recovery that is gaining strength we are seeing many companies upgrading their technology or replacing capital equipment.  Similarly, many retailers and service oriented firms are hiring again now that consumer spending seems to be accelerating.  This is exactly what usually happens after particularly sharp recessions, which makes it surprising that many commentators, whether economists or politicians, seem to doubt that such a thing could possibly be happening.  Perhaps it is human nature for recessions to make people pessimistic because nobody has been saying: “deep recession = big recovery.”  It is probably normal for people to expect an abnormally weak recovery however if history is any lesson that expectation will be proven wrong. 

If your company is not currently offering a financing or leasing program now may be the time to incorporate such an option into your sales approach.  Offering a monthly payment alternative to one lump sum purchase price can make a significant difference in your sales volume.  You will increase your average sale and also win extra sales that wouldn’t have been able to commit if cash was the only option.

Furthermore, you will reduce sticker shock by presenting a monthly payment option upfront with your original proposal.  Financing or leasing allows your customer to purchase with a lower upfront cost and leaves them with more money in the bank for cash flow and operating expenses – all of which are important factors for buyers right now. 

Over the last two years First Star has continued to invest back into our business, refining our processes, streamlining our procedures and strengthening our platform.  Our vendor partners appreciate the fact that we stay focused on ways to shorten their sales cycle and increase their average transaction size. 

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About Vendor Financing 101

Vendor Financing 101 is a strategic tool box for top performing equipment vendors nationally.  Businesses that sell equipment experience an immediate jump in sales when they implement an effective equipment financing or equipment leasing program.  Business owners and sales people constantly report sizeable increases in their sales volume after implementing an equipment finance program for their customers.  The vendor finance group is the fastest growing division within First Star Capital. Read More »

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April 2010

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