If you sell equipment, machinery, technology, or other commercial products, you have probably heard some version of the same customer objection:
“We need it, but the upfront cost is too high.”
One way to address that challenge is to offer financing to your customers.
You do not necessarily need to become a lender, extend your own credit, or wait months or years for customers to pay you. By partnering with a third-party financing company, your business can offer financing as part of the sales process while the financing provider handles the application, credit review, documentation, and funding.
For manufacturers, equipment dealers, distributors, resellers, and other commercial sellers, a vendor financing program can give customers another way to buy while giving your sales team another way to close the deal.
Key Takeaway: Businesses can offer customer financing by partnering with a third-party financing provider. The customer applies for financing, the financing company handles the transaction, and the vendor gets paid once the approved transaction is completed and funded.
How Can I Offer Financing to My Customers?
The simplest way to offer financing to customers is to partner with a financing company that specializes in vendor financing.
Instead of creating your own lending program, you can introduce financing during the normal sales process and direct interested customers to your financing partner.
A typical process looks like this:
- Become a vendor partner. Establish a relationship with a financing provider that supports the types of products or equipment you sell.
- Introduce financing to customers. Let customers know financing is available during the purchasing process.
- Send the customer to the application. The customer submits its information directly to the financing company.
- The financing company reviews the request. Credit, business history, equipment, transaction size, and other underwriting factors may be considered.
- The customer reviews available financing options. If approved, the customer can decide whether to move forward.
- You complete the equipment sale. Once documents and funding requirements are satisfied, the financing provider pays the vendor according to the transaction terms.
This allows your company to offer financing without building an internal lending department or carrying the customer’s financing balance yourself.
Ready to Offer Financing to Your Customers?
Tell us about your business and the products or equipment you sell. Centra Funding can help you explore becoming a vendor financing partner.
Why Offer Financing to Customers?
For many commercial purchases, the customer wants the equipment but may not want to use a large amount of available cash all at once.
Offering financing gives that customer another way to move forward.
It can also change the sales conversation. Instead of focusing only on the total purchase price, your sales team can introduce another purchasing option that may better fit the customer’s cash flow.
Reduce Upfront Cost Objections
A $50,000, $100,000, or $500,000 equipment purchase can be difficult for a business to absorb as a single cash expense.
Financing can allow the customer to spread the investment over time rather than paying the entire cost upfront.
Help Protect Your Margins
When a customer says the equipment is too expensive, discounting does not have to be the first response.
Providing a financing option can help address the customer’s budget concern without automatically reducing your equipment price.
Keep Sales Opportunities Moving
If customers have to leave your sales process and search for financing on their own, the transaction can lose momentum.
Offering financing directly through your sales process provides customers with a clearer next step.
Give Customers More Purchasing Power
A customer paying entirely with available cash may limit the purchase based on what they can comfortably spend today.
Financing may allow the business to consider the equipment package that better fits its operational needs, including additional units, accessories, upgrades, or eligible project costs.
Help Customers Preserve Working Capital
Your customer may have enough cash to purchase the equipment and still prefer to finance it.
Businesses also need available capital for payroll, inventory, hiring, marketing, materials, expansion, and unexpected expenses. Financing can help customers acquire equipment while keeping more cash available for those other priorities.
Learn more about how equipment financing can help businesses preserve cash flow.
Do I Have to Finance the Customer Myself?
No.
This is an important distinction when businesses ask how to offer financing to customers.
You can extend credit directly to your customers, but doing so may mean your company is responsible for establishing credit requirements, managing payment schedules, carrying receivables, monitoring customer payments, and handling collections.
With a third-party customer financing program, the financing provider handles the financing transaction.
Your company remains focused on selling its products and equipment.
How Does Third-Party Customer Financing Work?
Third-party financing separates the equipment sale from the financing obligation.
You Sell the Equipment
Your team works with the customer to determine what equipment or products they need.
You Introduce Financing
Your salesperson lets the customer know that financing is available and provides a link or other way to begin the application.
The Customer Applies
The customer submits an application directly to the financing provider.
The Financing Company Reviews the Application
The provider evaluates the customer and transaction based on its underwriting requirements.
The Customer Completes the Financing Process
If approved and the customer accepts the financing structure, the necessary documents are completed.
You Get Paid
After applicable documentation and funding requirements are satisfied, the financing company funds the transaction and the vendor receives payment according to the transaction terms.
When Should I Mention Financing to My Customers?
Do not wait until a customer says the price is too high.
Financing can be presented as a standard purchasing option early in the sales process.
For example, vendors can introduce financing through:
- Equipment quotes
- Sales proposals
- Product pages
- Sales emails
- Website financing pages
- Monthly payment estimates
- Trade show materials
- Digital brochures
- Sales presentations
- Customized financing application links
The goal is to make financing another normal way to purchase rather than something introduced only after the sale begins to fall apart.
How Can My Sales Team Talk About Financing?
Your salespeople do not need to become financing experts.
They simply need to know when and how to introduce the option.
Instead of saying:
“The equipment costs $100,000.”
The conversation can become:
“We also have financing available if you would rather preserve cash and spread the equipment investment over time.”
Your financing partner can handle the detailed financing questions, application, credit review, and transaction structure.
What Should I Look for in a Customer Financing Partner?
If financing is going to become part of your sales process, the financing experience should support the way your team sells.
When comparing vendor financing providers, consider:
Transaction Range
Can the financing company support both smaller transactions and larger equipment packages?
Fast Credit Decisions
Long financing delays can slow down the equipment sale. Look for a partner that can keep transactions moving.
Flexible Financing Options
Customers will have different credit profiles, business histories, equipment needs, and transaction sizes.
New Business Financing
If you sell to startups or newly established companies, look for a financing partner that can consider newer businesses.
Centra also offers equipment financing for startups and new businesses.
Easy Customer Applications
A complicated application process can create unnecessary friction during the sale.
Digital Tools
Online applications, electronic documents, financing calculators, and customized application links can make financing easier to incorporate into your existing sales process.
Vendor Marketing Support
A strong financing partner can also help you make financing visible through website content, sales materials, customer-facing resources, and customized financing tools.
Dedicated Support
Your sales team should have someone to contact when a transaction needs attention or a customer has financing questions.
What Types of Businesses Can Offer Financing to Customers?
Customer financing can work for many businesses selling commercial equipment, technology, and other business assets.
Examples include:
- Construction and heavy equipment dealers
- Manufacturing equipment sellers
- Restaurant and foodservice equipment suppliers
- Automotive equipment sellers
- Medical and veterinary equipment suppliers
- Technology and software solution providers
- Material handling equipment dealers
- Commercial vehicle and trailer dealers
- Printing and fabrication equipment sellers
- Agricultural equipment dealers
- Office and technology equipment providers
- Specialty commercial equipment sellers
If your company sells equipment or other eligible commercial products to businesses, a vendor financing partnership may give your customers another way to purchase from you.
How Do I Start Offering Financing to Customers?
You do not need to build a financing program from scratch.
The first step is to connect with a vendor financing provider and explain what your company sells, your typical transaction sizes, and the types of customers you serve.
From there, the financing company can determine whether its programs align with your business and discuss how financing can be incorporated into your sales process.
At Centra Funding, we work with manufacturers, equipment dealers, distributors, resellers, and other commercial sellers through our vendor financing programs.
Financing options range from $10,000 to $10 million, giving vendor partners the ability to support a wide range of equipment purchases.
Become a Centra Vendor Partner
If you want to start offering financing to your customers, complete our Vendor Inquiry Form. Tell us about your company and what you sell, and our team can discuss the vendor financing options available for your business.
Frequently Asked Questions About Offering Customer Financing
How can my business offer financing to customers?
One of the simplest approaches is to partner with a third-party financing company. Your business introduces financing during the sale, the customer applies directly with the financing provider, and the provider manages the financing transaction.
Do I need to become a lender to offer financing?
No. A third-party vendor financing program allows a seller to provide customers with access to financing without directly extending the financing itself.
Does my business have to collect customer payments?
Not when the financing is provided through a third-party financing company. The financing provider generally manages payments associated with the financing agreement.
How does offering financing help increase sales?
Financing gives customers another way to purchase when upfront cost or cash flow is a concern. It can help sales teams address budget objections without immediately resorting to discounts.
Can I put customer financing on my website?
Yes. Financing can be incorporated into product pages, financing pages, sales proposals, email campaigns, and other customer touchpoints. Customized financing links can also give customers a direct path to an application.
Can I offer financing at trade shows?
Yes. Vendors can promote financing through trade show signage, brochures, QR codes, sales presentations, and direct application links.
Can startups and newer businesses apply?
Some financing programs may consider newer businesses. Approval depends on the applicant, transaction, equipment, credit profile, and underwriting requirements.
How much can my customers finance through Centra?
Centra Funding offers equipment financing from $10,000 to $10 million, subject to approval and program requirements.
Ready to Offer Financing to Your Customers?
Give your customers another way to purchase while keeping your team focused on selling.
Centra Funding works with equipment manufacturers, dealers, distributors, resellers, and other commercial sellers to provide financing options directly within the sales process.
If you’re ready to explore a vendor partnership, complete our short Vendor Inquiry Form and tell us about your business.
Or learn more about Centra Funding’s Vendor Financing Programs.
