Six Keys for Financing Heavy Equipment

As businesses consider purchasing equipment they need to keep up with new or growing market share, the biggest factor is usually the price tag on the expensive machinery. When selling heavy equipment, businesses that offer financing are strategically positioned to close more sales, often in shorter timeframes.

If you are a vendor that is new to heavy machinery financing, or simply seeking to improve your current selling strategy, you can use these six financing tips to help increase sales and build a loyal customer base.

Still need help? You may want to consider a viable alternative like working with an experienced financing professional like Forsyth Capital Group, who can help you learn more about the equipment market and major business investments that drive future growth without breaking the bank.

1. Partner with a Commercial Lender

If your customers have to find an outside party to finance their heavy equipment, you are more likely to lose the sale. But you don’t need to offer in-house financing to keep them from walking out the door. In fact, partnering with a commercial lender lets the lender assume the financial risk instead of you, with the added benefit of fast, flexible approvals.

If heavy machinery financing isn’t approved by your customer’s bank, there’s a chance they may look elsewhere for their equipment purchase. A commercial lender like Team Financial Group, for example, understands that their business has unique needs, and will work with them on a financing plan that fits their specific situation. Faster, easier approvals can help you close more deals so your buyers start reaping the benefits of their new heavy equipment sooner.

2. Offer Heavy Machinery Financing Early in the Sales Process

Don’t be afraid to bring up financing early. When you ask, “Do you plan on financing this purchase?” you have the opportunity to tell them about your great financing options. You can follow up with questions about how long they plan to use the equipment or how they might retire used equipment. This will help you understand what type of financing they need and provide a quick estimate of monthly payments. Your knowledge and accuracy about the selling process can make them feel confident in you as a vendor.

3. Sell the Monthly Payment, Not the Overall Cost

You may want to consider estimating the monthly payment and talking about the payment quote rather than the overall sales price of something like construction equipment. This number often will be more appealing to prospective buyers, and it’s easier for them to see how this purchase could fit into their monthly budget. The monthly payment will sound more manageable than the full price of buying the equipment outright, helping you win over potential buyers.

4. Emphasize the Flexibility of Financing

Banks tend to offer a one-size-fits-all approach to lending, with stringent requirements about asset age and depreciation. When it comes to selling equipment, though, you will often find that buyers need out-of-the-box solutions for their financing. Selecting the right lending partner will give equipment buyers more options, while keeping the process simple and convenient.

Everyone wins when you offer your clients custom financing solutions tailored to their unique business needs. Your customers will appreciate how you helped them get their financing approved, even if they have a unique cashflow situation like a seasonal enterprise. Offering flexible, customized financing plans also will earn you repeat business from loyal customers.

5. Get a Credit Application

You can often turn window shoppers into buyers simply by having them fill out a credit application. This small act is a first tangible step of the sales process and will leave customers feeling more committed to buying their equipment from you. If they have any questions about how to finance heavy equipment, this is a way to give them time to collect their thoughts and get the answers they need to move forward with purchases.

6. Make the Process Easy to Keep Buyers Coming Back

As a heavy equipment seller, if you can make the financing process easy for your clients, you’ll be more likely to earn their business. They’ll remember that you offered affordable financing solutions to suit their situation, and they didn’t need to go through a third-party lender’s one-size-fits-all approach only to get denied.

Your expert knowledge will help build personal relationships with your clients and keep them coming back to the vendor they know they can trust.

Forsyth Capital Group Can Help Your Business with Selling Heavy Equipment

Forsyth Capital Group has experience with all types of commercial equipment, from excavators to CNC machines to solar energy solutions. We also work with a diverse set of clients to find customized payment options that are affordable for their unique equipment needs.