• 07 Apr

    Asset Finance For Customers Buying Equipment

    A banket asset finance arrangement for customers buying high value equipment from a manufactuer.

    Equipment sales can be large purchases for companies to make, in many cases, they will seek some form of asset finance to break down the cost into affordable monthly payments. We recently completed an arrangement for an equipment supplier to provide asset finance for equipment sales to their customers under a blanket arrangement.

    Asset Finance For Customers Buying High-Value Equipment

    In this case, our client was a major equipment manufacturer that sells high-value items to customers. In many cases, customers want to finance these purchases by making affordable monthly payments. Our client wanted a blanket asset finance arrangement through which their customers could access that type of finance at favourable rates.

    Blanket Asset Finance Arrangement

    The blanket asset finance arrangement was put in place with a well-known major asset financing company so that our client could refer their customers to an expert to arrange the funding. The arrangement has been rolled out to our client's sales team so that they can make direct referrals to an asset financing specialist that sets up the facilities. In this way, our client's sales team don't need to understand the intricacies of finance, they just introduce their customer to the funding specialist.

    Making More Sales

    It can be beneficial to the sales process to be able to offer this type of finance to customers. Having access to a blanket facility means that the issue of lump-sum purchase pricing can be removed as a barrier to making sales. This can help equipment suppliers close more sales.

    Using arrangements like leasing and hire purchase, the cost of high-value equipment can be spread over a long period of time. The exact structure of the financing will determine whether or not the end customer ultimately owns the equipment. However, in this particular case, the customers did own the items.

    By Glenn Blackman

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Examples of funders we work with:

seneca
apollo business finance
leumi abl
bibby
nucleus
igf