“ Thank you for the level of service that you have provided to my company and my customers. The funding requests that I have sent to you have been serviced in a manor that exemplifies the level of professionalism that you and your organization provide. I am excited to continue our working relationship as a way to sell more equipment, increase our average transaction size and to better serve my clients. Our vendor financing program with First Star Capital sets us apart from the competition.”
- National Sales Manager, IT Equipment Reseller

Any company that is in the business of selling equipment, technology, or vehicles (valued at $10K or more) to other businesses can benefit significantly by implementing a good financing / leasing program for their customers.

Having a customer finance program in place is a powerful tool to grow sales. There are several important components to an effective customer finance program. These factors will ultimately influence how successful the program is. Your financing / leasing company should offer competitive rates, flexible terms, consistent credit decisions, quick turnaround time, and personalized service from a friendly and knowledgeable staff. First Star Capital is known for routinely delivering all of these components; which is why we are regularly chosen as a preferred financing partner for equipment vendors nationally.

In general, when the cost of an equipment acquisition exceeds $10K, businesses like to consider or entertain alternatives to paying in one lump sum. Presenting a fixed monthly payment option with a First Star equipment loan or lease is wise because it enables the buyer to spread out the cost of the equipment affordably. By matching the repayment term to the anticipated useful life of the asset, it creates the most favorable cash flow dynamic for your customer. Also, some equipment leases allow for substantial tax benefits.

There are several key reasons why you should offer financing / leasing on the equipment that your company sells:

• Eliminate sticker shock - $20K sounds more threatening than $450 per month
• More than 80% of the businesses in the US have leased or financed equipment in the past… it is a routine process that business owners are already accustomed to.
• You can easily increase average order sizes because a cost increase of $1K only equates to an increase in the monthly payment of approximately $20 - $25.
• Financing speeds up the sales cycle because it is normally faster & easier to commit to a monthly payment / operating expense than it is to budget for a cash purchase.
• Lease payments can be a tax deductible business expense eliminating the need for complex depreciation schedules.
• An attractively presented and competitively priced financing / leasing option will give your customers the ability to quickly assess the profit derived from their pending equipment purchase.

There are many compelling reasons to implement a customer finance program with First Star. Our vendor finance programs and tools will deliver tangible benefits to your company such as closing more sales, shortening the sales cycle, and increasing your average order size. Give us a call to create a successful customer finance program that will turbo-charge your sales volume in the second half of 2010.

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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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July 2010

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