But for now, let’s continue on with my “what you should look for in a finance partner” series. If you don’t know what I am talking about, see the first two posts in this series here and here. Last time, I finished with telling you that any finance partner should be proactive. Here’s what I mean by that:
It’s easy to understand the concept of offering financing. Finance X for Y years. Do the deal, the payments start, and everyone is happy.
But what about a finance partner that can go above and beyond a simple “straight” financing deal, and could get creative to help you close sales – wouldn’t that be nice?
Here’s what I mean – you ever see those deals that stores sometimes offer – “no payments until 2015”. Or maybe “first payment skipped” or “no payments during the winter months” or something similar? That’s what I am talking about – does your financing partner engage in creative programs that make financing more attractive to your customer? That’s really key, and for some industries, it can make a real difference.
A good example of this is a golf course in the Northeast. They operate (in general terms) April through November. So Dec-March, they make no revenue. Do you think they might like a financing deal that follows this schedule? Now I realize it’s easy to say “hey, that’s business – they should be happy to pay all year – just budget for it”. And you would be correct. But if you’re one of ten golf cart manufacturers, and you’re the only one that can offer “no payments Dec-March” (because you have a really proactive financing partner)… guess what? You have a HUGE advantage.
This is one very basic example, and there are a lot of different “types” of deals, but you get the point: “Proactive = Good”.
So, do you have a proactive financing partner?