My last post discussed lead aggregators and how they were now popping up when companies searched for a finance partner. And I offered the advice that any finance partner you choose should be the actual company that provides the funds.
But that got me thinking – what else should you look for in a finance partner? Let me give you a few suggestions:
** Disclaimer – this is generally for manufacturers, distributors, and/or dealers of equipment, vehicles, and software. You know, stuff businesses use.
Ok, here’s my partial list (there will be two or three parts to this)
Your finance partner should have a track record – Johnny-come-lately is great for technology companies. Not so much for equipment financing, though. You want a company that has been in business at least a decade – there needs to be some stability there. And “trust” is huge.
Your finance partner should pay you fast – You want to get paid, so choose a finance partner that pays you quickly. Preferably on delivery and acceptance of your product (unless other arrangements are made).
Your finance partner should be easy to use for your customers – No brainer here. You do not want your customers jumping through hoops to apply for financing. You want your finance partner to generally do what’s called “application-only” financing for common deals. This means up to a certain number (say 150k), there only needs to be an application filled out – no financial statements or digging through old tax returns.
Speed is of the essence as well – Your customer does not want to wait around for days and weeks for an answer to their finance query. And you, as a vendor, do not want them waiting either (this gives them more time to shop around). So choose a finance partner that can give your customers an answer fast – preferably same day, if at all possible.
There, that’s a good start. More later.