Commercial equipment financing options come in many shapes and sizes, so it’s essential to understand the terms of your financing agreement before you sign. One of the most important aspects affects the interest you’ll pay on your lease or loan. While you’ll mostly see fixed interest rates for equipment loans, it’s also possible to get a variable-rate equipment loan. But what does this mean? And which option is best for your business?
In this article, we’ll discuss the difference between fixed and variable interest rates and explain why a fixed interest rate is usually the best option for equipment financing.
A fixed interest rate means you will pay the same percentage of interest each period. The interest rate is locked in, so no matter what happens to the market or the lender’s general interest rates, you will pay that fixed rate for the entire duration of your financing term.
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If your loan has a variable interest rate, then the interest rate will move up or down based on changes in the market. Usually, the variable interest rate is tied to an index rate, which is a benchmark rate that’s based on market factors.
The benefit of variable interest rates is that if the market rates decrease, so will the interest rate on your loan. Of course, the reverse is also true; if market rates go up, so will your interest payments.
Most commercial equipment financing options have fixed interest rates, and for good reason. With a fixed interest rate, you can predict exactly how much you’ll be paying each period and how much your financing will cost you over the long run. This knowledge allows you to fine-tune your financials and budgeting to fit your business needs, and it also removes any surprises from the financing process.
With equipment financing, most business owners know exactly how much money they need. They’re looking to acquire a specific type of equipment and use it for a specific length of time. Fixed interest rates line up perfectly with these businesses’ need for financial predictability. When combined with fixed interest rates, equipment loans and leases help businesses of all types achieve accurate budgeting and financial planning.
In general, it’s best to match the length of the financing term to the useful life of the equipment you’re purchasing. When you combine an appropriate financing term with a fixed interest rate, you set your company up for accurate budgeting based on established best practices.
Financing options with variable interest rates still have their uses. Many businesses use these lines of credit to finance receivables and inventory on a short-term basis, and your business may want to consider doing the same where it makes sense.
At Team Financial Group, we offer leases and finance agreements that we can customize to fit your unique business needs. We’re dedicated to helping our clients grow and thrive by providing efficient and flexible financing options and personalized service.
Ready to get started? Applying is easy! Just visit our application page, fill out your contact information, and one of our commercial financing experts will get in touch to help walk you through the application process and determine which option is right for you.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
Aero Lift, Inc. rents, sells, and repairs SkyTrak forklifts and attachments throughout Michigan. The company also provides field service, support, and parts nationwide. With 25 years of history in the commercial equipment industry, Aero Lift offers customers friendly service, timely shipments, and competitive pricing.
Aero Lift aims for efficiency in everything they do, and the Aero Lift team is always looking for new ways to improve. Since Aero Lift wanted to increase their sales and streamline the purchasing experience for customers, the company began to explore the possibility of providing financing options for equipment purchases. By offering financing, Aero Lift would not only be able to attract more customers but would also improve the relationships they build with their clients.
However, handling the extra organizational burden and risk involved in offering financing services was not something Aero Lift wanted to take on as a company. So, Aero Lift began to look at financing partners. Team Financial Group came highly recommended through a colleague, and Aero Lift decided to inquire about becoming a Team Financial Group vendor partner.
Impressed with Team Financial Group’s efficiency, flexibility, and responsiveness, Aero Lift partnered with Team Financial Group to provide Aero Lift customers with flexible financing options.
“We’ve been partners for five-plus years,” says Aero Lift, Inc. President, Jim Koontz. “If a client requests financing, Team Financial Group will get it done.”
Team Financial Group offers financing options for commercial equipment needs, which allows Aero Lift to provide customers with financing for SkyTrak purchases. And by partnering with Team Financial Group, Aero Lift receives all of the benefits of offering flexible payment options with none of the risk or hassle.
Aero Lift says they’ve experienced benefits from the partnership that include:
Interested in offering your customers flexible and affordable payment options for commercial equipment? Team Financial Group can help. Learn more about the benefits of becoming a Team Financial Group partner by giving us a call at 616-735-2393 or filling out our quick online contact form.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
Private-party sales can offer a cost-effective way to purchase used commercial equipment. But while the potentially lower cost of the equipment is a significant advantage, there are two possible drawbacks of private-party sales that you need to consider before you buy.
First, there’s a higher risk of complications with a private party than with an established vendor. And second, even when used, commercial equipment can carry a hefty price tag. What if you can’t afford the full price up front? Will you have to turn elsewhere to get the equipment you need?
In this article, we’ll outline a few ways to authenticate and simplify your private party equipment purchase. We’ll also explain how Team Financial Group can provide financing whether you’re looking to purchase equipment through a vendor or a private party.
A private-party sale is any transaction in which you purchase from an individual owner rather than a vendor or dealer. Individuals often engage in private-party sales when they buy goods at yard sales or through websites like eBay and Craigslist. However, businesses can also take advantage of private-party sales to purchase commercial equipment.
Private-party sales are a common method for purchasing heavy equipment such as construction vehicles or agricultural machinery. The following are examples of the different options or ways business owners come across equipment that is for sale by a private party:
When you purchase used equipment from an individual rather than a verified vendor, you take the risk of getting less (or more) than you bargained for. Use this checklist before you purchase equipment from a private seller to make sure everything is in order.
Let’s say you found a gently used truck trailer being sold online by a private seller, and everything appears to check out. However, as you’re looking over your finances, you realize that even the great price you’re getting is going to put temporary stress on your company’s cash flow. What should you do?
Fortunately, commercial equipment financing can relieve your cash flow stress. With a financing partner, you get the equipment when you need it, and you get to make convenient monthly payments rather than deal with one massive up-front expense.
RELATED: Business Health: How Equipment Financing Can Help Your Cash Flow
Not all equipment financing companies or banks will provide financing solutions for equipment purchased in a private-party sale, but we do at Team Financial Group. We can provide fast and flexible financing whether your purchase comes through a vendor or a private party.
At Team Financial Group, we can provide financing solutions for all your commercial equipment needs. If one of your business contacts is willing to sell you the perfect piece of equipment at a great deal, but your cash flow doesn’t accommodate an outright purchase, we can help!
To get fast, flexible financing today, just fill out our easy online application and let us do the rest.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
Research shows that 20% of new small businesses fail, and the number one reason for failure is cash flow problems. But it’s not just small or new businesses that experience cash flow issues; larger and more established companies can also hit these types of snags. So, healthy cash flow is necessary for any business.
In this article, we’ll take a closer look at the importance of positive cash flow, discuss the benefits equipment financing can have on cash flow and explain how to get financing if you need it.
Cash flow describes the balance between expenditures and income. When your income is greater than your spending, your cash flow is positive. But if more money goes out to pay your bills than comes in through sales, your cash flow is negative.
Negative cash flow can result from a variety of factors. Examples include issues with your accounts payable or collections process, current industry and economic trends, and seasonal dips in business (which many agricultural businesses experience, among others).
Healthy cash flow allows your company to:
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Most companies examine their cash flow on a monthly basis. Especially for businesses that have a seasonal component, cash flow issues can result from bad timing rather than fundamental business problems.
Having a cash flow issue doesn’t mean that your company is spending more than usual. Even if spending remains under budget, you could experience cash flow problems if your income temporarily decreases. For example, if one large account falls behind on payments, it could be enough to send your cash flow into the red.
Since the timing of expenses can have a huge effect on cash flow, large up-front purchases are a common cause of cash flow issues. However, large purchases may be unavoidable if your business needs new or updated equipment to keep up with demands, meet customer expectations, and keep cash flowing in. So, many small businesses face a difficult decision: put off critical equipment purchases and updates or face a cash flow crunch.
The simplest and best solution to this problem is commercial equipment financing. Instead of bearing the entire cost of equipment up front, equipment financing allows you to make smaller payments each month. This way, your company can acquire the equipment without creating a massive impact on your cash flow. You’ll also get some flexibility in terms of working capital, which will help when unforeseen expenses come up.
RELATED: The Beginner’s Guide to Commercial Equipment Financing
As an example, consider our popular $1 buyout lease option. The $1 buyout lease is similar to purchasing equipment with a loan. You’ll make a monthly payment, and at the end of the financing term, your company makes a final $1 payment that technically transfers ownership of the equipment. But for practical purposes, you’ll own the equipment throughout the life of the lease (it will appear on your balance sheet as a company asset), and you won’t have to worry about a large up-front payment upsetting the balance of your cash flow.
If you’re not sure which type of equipment financing is right for your business needs, just get in touch with our experts. We’ll talk with you, learn about your company, and come up with a financing strategy that makes sense for you.
At Team Financial Group, we work with clients to find and customize the financing solutions that meet their unique needs. Our commercial equipment financing options can improve your business’ cash flow and overall financial health. To get fast, flexible financing today, fill out our simple online application and let us do the rest.
References
Desjardins, J. (2017, August 2). Here’s why small businesses fail. Business Insider. Retrieved from https://www.businessinsider.com/why-small-businesses-fail-infographic-2017-8
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
Xtreme Xpress is an agriculture and transportation company in Seymour, Indiana. Although Xtreme Xpress started as (and still is) a farming business, they also developed their own fleet of trucks to transport their products. Later, they began hiring out those trucks to other local farmers. Xtreme Xpress was able to add this new source of revenue thanks to help from their long-standing financing partner, Team Financial Group.
At first, Xtreme Xpress just needed a few trucks to transport their products from farm to store. However, as a small business, Xtreme Xpress needed to conserve working capital. So, the company needed a financing partner with experience handling commercial equipment transactions, and they required flexible financing options that would work around the seasonal nature of their farming business.
Xtreme Xpress also wanted to obtain financing faster than they could through a bank and avoid hassle and paperwork that their small team wasn’t equipped to handle. Team Financial Group fit the bill perfectly.
“[The experts at Team Financial Group] are efficient, honest, and have a short turnaround time,” says Xtreme Xpress owner Robert Broshears. “You email or pick up the phone and explain what you want, they list the requirements, and you’re done. They produce the paperwork, and it’s settled.”
After evaluating Xtreme Xpress’s needs, Team Financial Group recommended a $1 buyout lease so the company could get the assets they needed with affordable monthly payments. Using the financing they received, Xtreme Xpress acquired their first trucks.
As their company continued to grow, Xtreme Xpress discovered that other local farmers needed access to trucks. So, the company expanded their fleet and began to rent trucks to local farms.
Over the years, Xtreme Xpress has returned to Team Financial Group whenever they need additional funding.
“Team Financial Group has been an important part of our business over the past 15 years,” says Robert Broshears. “We have had countless loans and encounters, and all have been effortless.”
Xtreme Xpress’ partnership with Team Financial Group has allowed the company to acquire a wide range of truck and farm equipment, including:
“Time is money,” Robert Broshears says. “When you’re a small business, you don’t have the staff to expend on meetings and paperwork and hoops to jump through. You need a seamless process that is efficient, and Team Financial Group has been that lender for us.”
At Team Financial Group, we take the time to get to know you and your business so we can provide the best financing option for your unique needs. Ready to get fast, flexible financing for your business? Fill out our easy online application and let us do the rest.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
If you’re a business owner, you may already know that certain commercial assets are depreciable, which means you can expense a portion of those assets’ costs each year you use them. Many business owners love this accounting technique because it decreases their reported net income for tax purposes.
However, what many business owners don’t know is that you don’t have to purchase an asset outright to depreciate it. Instead, you can use commercial equipment financing to acquire the equipment and still gain the full benefits of depreciation. Not only that, but several other tax benefits also apply to equipment purchased using a loan, lease, or finance agreement. Keep reading to learn more.
With a traditional loan, you borrow money to purchase equipment your company needs. So, you own that equipment, but the amount that you pay in interest versus principal can vary over the life of the loan. With an equipment finance agreement (EFA), you also own the equipment, and the amount of interest you’ll pay over the life of the loan remains fixed.
Because you own the equipment either way, the two financing options often have the same tax benefits as if you purchased the equipment outright.
With an equipment lease, you do not own the equipment. Instead, you pay the lessor for the use of the equipment, much like a rental agreement. While there are many benefits of leasing equipment over finance agreements or loans, the fact that you don’t own the equipment may make some tax benefits unavailable.
For a more detailed comparison of the three types of financing options, check out the blog below.
RELATED: Loans, Leases, and Finance Agreements: Which One Is Right for My Business?
Section 179 is a tax incentive for businesses. This benefit is designed to help small and medium-sized businesses purchase equipment and invest in business development. Section 179 allows you to treat qualifying assets as business expenses and expense the costs of those assets immediately.
You must meet several qualifications to receive Section 179 benefits:
Keep in mind that the rules for Section 179 benefits can change from year to year. For example, the IRS occasionally changes the value caps. The amounts listed above are for the 2019 tax year.
While traditional depreciation allows you to slowly recover some of the equipment’s cost over its lifespan, bonus depreciation lets you recover a large percentage of the cost all at once. However, you must take bonus depreciation in the first year that the depreciable equipment is placed in service.
So, how does this benefit help businesses? If your total equipment purchases exceed the $1 million maximum write off for Section 179, you can apply bonus depreciation to the remainder of your purchase amount.
Note that the current rules and limits for bonus depreciation will expire in 2023.
Now, let’s look at how bonus depreciation pairs with Section 179 benefits. If your company had $1.7 million in qualifying equipment purchases, you could qualify for a $1 million deduction from Section 179. Because of the current 100% bonus depreciation, you can then depreciate the remaining $700,000 for the same year, creating an additional deduction.
In previous years, when depreciation rates were less than 100%, using Section 179 first and then depreciating the remaining amount usually yielded higher overall deductions. Now, thanks to the 100% bonus depreciation rate for 2019, you could choose to depreciate the full $1.7 million and receive the same total deduction.
However, there are other factors to consider when deciding how to apply 100% bonus depreciation and Section 179 deductions. Speak with your tax advisor to determine which option is right for you.
Still have questions about the tax benefits (or many other benefits) of commercial equipment financing? Team Financial Group can help. Get in touch with us by calling 616-735-2393 or filling out our convenient online contact form. Or, if you’re ready to apply for fast, flexible financing today, fill out our easy online application and let us do the rest.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
Debt can cause stress, especially if you have multiple outstanding loans. So, paying off an equipment loan early can seem like a no-brainer — but you might be surprised to learn there are certain situations when it can hurt more than help.
In this article, we’ll first discuss whether you can pay off an equipment loan early, and then we’ll get into whether or not you should. Ask yourself these questions as you decide when to pay off your commercial equipment loan.
Your answer to this question determines whether or not you can save money by paying off your loan early. Different types of loans may not incentivize early payoffs or may even include an early payoff penalty.
With an amortizing loan, you make periodic payments that apply to both the principal balance and interest. Typically, payments on amortizing loans mostly pay down interest during the early part of the term. As the loan term goes on, more of each payment goes toward your principal balance.
Paying off an amortizing loan early can save you from having to pay future interest. However, some lenders include an early payoff penalty in the loan contract since an early payoff will cause the lender to lose out on interest.
Should I Pay It Off Early?
It can be beneficial to pay off amortizing loans early. Check whether your loan has an early payoff penalty built into the loan agreement.
A non-amortizing loan is a type of loan that usually has no fixed payment schedule. Instead, you pay off the principal balance in a lump sum. The amount of interest in a non-amortized loan is fixed, so no matter when you pay off a non-amortized loan, the lender gets the same amount of total interest.
Should I Pay It Off Early?
It may be possible to pay off your non-amortized loan early, but doing so won’t save you any money in interest payments.
RELATED: The Beginner’s Guide to Commercial Equipment Financing
Once you’ve determined whether you can benefit from paying off your loan early, you need to consider whether you can afford to do so without jeopardizing the financial stability of your company.
If you tie up all your cash by paying off a loan early, you could put the entire stability of your company’s finances at risk. And even if the worst doesn’t happen, you might end up just having to take out another loan before long when you find you can’t afford to maintain your equipment or acquire new equipment. So, you want to make sure you’re not using all or most of your available cash reserves to pay off your loan early.
Should I Pay It Off Early?
No. Using all your available cash to pay off a loan can jeopardize the financial stability of your company.
If you can safely pay off a loan while still keeping a healthy cash flow for your business, it could be worthwhile to pay off your loan early. This is especially true if you have other types of loans or debts in addition to the equipment loan and you want to minimize your debt service coverage ratio.
Should I Pay It Off Early?
It may be worth paying off your loan early if your company will still have a healthy cash flow after the early payoff.
Now that you’ve established whether you can pay off the loan early, it’s time to look at why you want to do so. Even if you have an amortized loan with no early payoff penalty and the funds to pay off your loan early, it doesn’t mean an early payoff is the right move for your business. Whether you should pay off an equipment loan early depends on how it will affect your company’s long-term health.
At Team Financial Group, we offer leases and finance agreements that we can customize to fit your unique business needs. We’re dedicated to helping our clients grow and thrive by providing efficient and flexible financing options and personalized service.
Ready to get started? Applying is easy! Just visit our application page, fill out your contact information, and one of our commercial financing experts will get in touch to help walk you through the application process and determine which option is right for you.
If you have questions or concerns you want to address before you begin the application process, we can help. Get in touch with us by calling 616-735-2393 or by filling out our convenient online contact form.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
Helix Diagnostics is a full-service clinical laboratory that provides complete toxicology analysis. The company focuses on the timely generation of precise and accurate results, and the team at Helix Diagnostics understands the critical importance of monitoring drug interactions in patients who are taking narcotics. Their services also help discourage illicit drug use.
However, at the beginning of the partnership with Team Financial Group, Helix Diagnostics didn’t even exist yet. The company was still operating as Ark Laboratory, a single-service laboratory provider.
In 2015, Ark Laboratory faced dissolution due to financial obstacles beyond their control, and they began looking at commercial financing options. But the financing companies they talked with didn’t take the time to understand their unique needs and challenges. Fortunately, all that changed when Helix Diagnostics got in touch with Team Financial Group.
“We have dealt with many lenders over the years,” says Norman Kiminaia, CFO of Helix Diagnostics, “and they all lacked what Team Financial Group delivers: personal service.”
Tim Maczka, the founder of Team Financial Group, personally visited Ark Laboratory to meet the ownership team and better understand the company’s needs, concerns, and vision. Thanks to this experience, Tim saw what the other lenders hadn’t: Ark Laboratory’s incredible potential.
Due to the wide variety of diagnostic and office equipment that Ark Laboratory needed, Team Financial Group decided that the best strategy involved two separate financing solutions. With a $1 buyout lease, the laboratory was able to purchase a variety of specialized, long-term assets that would receive daily use. Some of these assets included:
Ark Laboratory also received a fair market value (FMV) lease to acquire multiple copiers and printers. The FMV lease allowed the company to pay a lower monthly payment on the machines with the option to update to newer models in the future.
“We found a strategic partner in Team Financial Group, not just another lender,” says Kiminaia. Because of that partnership, Ark Laboratory was able to realize the vision of its leadership team and rebrand as Helix Diagnostics.
At Team Financial Group, we offer more than just financing — we create strategic partnerships designed to help clients grow and thrive. Our mission is to build long-lasting relationships with clients and vendor partners so we can deliver the fast, flexible financing that best fits each client’s needs.
“If you’re looking for a true strategic partner to service all your lending needs, then there is no need to look any further,” says Norman Kiminaia. “Team Financial Group is the one that understands your needs and truly works to see your vision.”
To get started on the financing process today, fill out our quick online application and let us do the rest. Or, if you’ve got questions or just want to learn more, call us today at 616-735-2393 or fill out our online contact form.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
October is National Energy Awareness Month! Help manage our nation’s energy resources by taking steps to conserve your company’s energy use. Not only will you save energy, but you’ll save money too.
At Team Financial Group, we partner with local nonprofit organization Michigan Saves to help Michigan businesses obtain financing so they can build more sustainable and more energy-efficient companies.
Not located in Michigan? Don’t worry — we offer financing solutions to qualifying businesses throughout the Midwest and beyond.
Keep reading to learn about the many benefits of energy efficiency and find out how you can save money when you save energy.
Besides helping our environment by reducing energy waste, decreasing your business’ energy output can be very beneficial for your company. Here are four of the top benefits of efficient energy use.
Your company may be eligible for a variety of energy-related tax breaks if you decrease your energy usage by a certain percent. Tax breaks may include:
For more information about your specific qualifications, talk with your tax advisor.
Is your energy bill one of your company’s biggest expenses? If your company has a large production or manufacturing facility, decreasing your utility bill is likely to save you considerable money before long, even when you consider the initial costs of installing more energy-conscious equipment.
More than a third of consumers today consider the environmental impact of a product before purchase. Being able to advertise your products, services, or facility as being environmentally conscious can give your company an edge against the competition and attract business from mindful consumers.
A recent study from Cone Communications found that 75% of millennials said they would take a pay cut to work for a company with strong corporate social responsibility practices. If you devote the time and effort into developing a more sustainable business, you’ll position your company to attract the next generation of top talent.
The steps below may not make sense for all companies, but they’re a great place to start when looking for inspiration for your energy initiative. Some suggestions also require more financial investment than others but remember that Team Financial Group is here to help.
Companies of all sizes are investing in renewable energy, especially solar power. While few companies run exclusively on solar power, supplementing your consumable energy with renewable sources can drastically cut back on your utility bills. The cost of solar panel systems has plummeted in recent years, and various organizations offer special deals, tax breaks, deductions, and recognition for companies that go solar.
Controlling the temperature of your workplace often makes up a large part of your overall energy use. The heating, ventilation, and air conditioning systems you use throughout your facility play a major role in determining your energy use. While you may be able to adjust the temperature and conserve some energy, the best way to save both energy and money is to upgrade your HVAC system. Newer systems have updated technology that require less energy. Some of them may even include or work with add-ons that provide suggestions for energy conservation.
Many appliances and pieces of heavy equipment that your employees use can be updated to safer and more energy-efficient models. Even small appliances like microwaves can consume a significant amount of energy with frequent use. The older your appliances and equipment are, the less likely they are to be energy efficient. Consider updating assets such as:
RELATED ARTICLE: Get the Financing You Need to Improve Your Workplace Safety
Your initiative to save energy doesn’t have to happen all at once. If you’re not sure where to begin, start with small steps and work up from there. Initial measures you could take to conserve energy might include:
At Team Financial Group, we’re dedicated to helping conserve energy and keep our environment clean. As part of our sustainability initiative, we partner with local nonprofit Michigan Saves to help businesses acquire affordable financing for energy improvement.
Ready to boost your company’s sustainability and save money? Give us a call at 616-735-2393 or fill out our online contact form and we’ll do the rest.
References
Cone Communications. (2016). 2016 Cone Communications millennial employee engagement study. Boston, MA: Cone Communications. Retrieved from http://www.conecomm.com/research-blog/2016-millennial-employee-engagement-study
Martins, A. (June 4, 2019). Most consumers want sustainable products and packaging. Business News Daily. Retrieved from
https://www.businessnewsdaily.com/15087-consumers-want-sustainable-products.html
Tax incentives for energy efficiency upgrades in commercial buildings. (2013). Office of Energy Efficiency & Renewable Energy. Retrieved from
https://www.energy.gov/eere/buildings/tax-incentives-energy-efficiency-upgrades-commercial-buildings
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.
More businesses are using commercial equipment financing to help them acquire the equipment and assets they need to grow and thrive. For commercial equipment vendors, it’s become increasingly essential to develop financing options for their clients.
However, not every equipment seller is ready to offer financing solutions, and sellers that do offer their own financing have to deal with the risk and hassle of evaluating applications and determining creditworthiness. But by partnering with an independent commercial equipment financing company, you can get the financing options your customers demand without the associated challenges.
Interested in providing additional purchasing options for your customers? Keep reading to learn more about the benefits of partnering with an independent equipment financing company.
The primary benefit of offering more purchasing options is that it allows you to finalize more sales. Customers who would have looked elsewhere for cheaper equipment or tried to wait until they had more spending capital may decide to purchase from you now if you can offer a financing option that fits their needs.
If you want to maximize your ability to close deals, you’ll need to offer multiple financing options. Different clients have different needs, from flexible payment schedules to quick approval and funding.
Your clients aren’t the only ones who get what they need faster when you partner with Team Financial Group. Being a vendor partner means quicker approvals and expedited deals, which translates to you getting paid faster.
Having your clients secure financing through an independent lender means you receive the full selling price of the equipment upfront. Essentially, Team Financial Group will purchase the equipment from you on behalf of your client.
Financing with Team Financial Group is risk-free. You’ll never have to worry about a client defaulting on a payment since you receive the full value of the equipment upfront. We evaluate each financing application and assume all the risk involved in the transaction.
Helping clients acquire the equipment they need on their terms creates better customer relations and helps build your business’s reputation as a company that puts clients first. Offering more purchasing options and improving client relationships can also help you develop more repeat customers and improve brand loyalty.
RELATED ARTICLE: How Do Commercial Financing Partners Evaluate Loan Applications?
At Team Financial Group, we employ streamlined, standardized processes when working with our vendor partners, which helps us maximize efficiency. However, we also try to balance this approach by offering as much flexibility as each vendor needs.
There are two main approaches we use in our vendor partnerships:
Some of our vendor partners prefer not to deal with the financing side of the partnership at all. When a potential customer expresses interest in financing for equipment, these vendors call us or email us and we handle everything from there. This type of relationship allows the vendor to offer financing without any hassle or additional paperwork.
Other vendors prefer to take the lead and maintain more control over the financing process. We support these vendors by providing the underwriting responsibilities and lease documentation papers. The vendor then handles all communication with their client as well as the paperwork.
Ultimately, the details of your relationship with Team Financial Group will depend on your unique business needs and your preferences. Whatever you choose, we’ll work with you to develop strategies and financing plans that make the most sense for your business and your customers.
If you have any questions about what it would mean to offer financing for your customers, get in touch with us. We’d love to work with you to find a solution that makes sense based on your customer base and business needs.
Ready to get started? Give us a call at 616-735-2393 or fill out our online contact form and we’ll do the rest.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.