By: Ciarra Wagner on June 26th, 2020
VLOG: Common Technology Financing Questions Facing Solution Providers
With both consumer confidence and the desire to invest working capital into technology at low levels, it is more important than ever to explore options that drive both you, the Solution Provider, and your customer toward profitability.
Earlier this month, we provided coaching on how we see the monthly payment option fitting into today’s current set of circumstances for both you and your customer in the blog, Why Leading with A Monthly Payment Provides Value in Any Economic State. This 4-minute read proves incredibly helpful for Solution Providers currently offering financing as an option, however, we understand some of you are still on the fence.
In the below video and in this blog, we address several common questions received around financing in hopes of providing clarity and empowerment for you to get started. Let’s dive in.
What Technologies Can I Finance?
The technologies you have the ability to finance through GreatAmerica include computers, IT infrastructure, networking, phone systems, professional audio/visual, physical security, surveillance, and software. You can also finance installation and project costs. Although we do not fund you upfront for recurring managed services, we are able to both bill and collect these service charges for you on a monthly basis and pass through the recurring funds as they are collected in effort to save you and your team the administrative work.
What Do My Customer and I Have to Do?
Our goal is to keep it simple and hassle-free for both you and your customer. For your customer, the process is as simple as opting for the monthly payment and signing the lease document. For you, your role is to submit the credit application on behalf of your customer, relay the lease documents for signature, and send us the invoice. What’s next? You get paid!
For more on the credit approval process, check out this FAQ-styled blog. Our team members dedicated to you ensure clear communication along the way. Curious what our team structure looks like? Surprise… we wrote a blog detailing our team-based structure, too.
How Do I Get Paid for A Transaction?
GreatAmerica pays its Solution Providers upon installation and customer verification of delivery. Your payment can be immediate via ACH or by mailed check, whichever is preferred. That’s about as close to cash terms as you can get! For more on how to get paid, we encourage you to check out The Finance Process in Seven Steps, where we go into detail of each step:
- You quote a monthly payment
- We review your customer’s credit and issue a decision
- You finalize the solution and request documentation
- The customer signs the lease or rental agreement
- You send us the documentation and invoice
- You order and install the equipment
- You get paid!
What Determines the Rate Factor?
At GreatAmerica, our pricing is competitive and can vary based on the type of agreement, the average size of transactions, the average length of term, and the volume of transactions. It is important to note that the credit worthiness of the customer is not a factor in determining rate structure. If we approve your deal, you're going to get the rate we previously provided.
Because we get this question frequently, we have dedicated an entire page of our website to go in-depth on the subject of pricing and rate factors. Check it out here.
Are Fees Associated with a Finance Lease?
When it comes to fees, we want nothing to come as a surprise to you or your customer. Your customers can expect a one-time origination fee on their first invoice. The only other fees that can accrue are a late charge in the event payment is received past due, or an insurance charge if proof of insurance is not provided in advance.
Similar to the rate factor, the topic of fees is very popular. We address the topic in more detail here.
What Makes GreatAmerica Different?
Since opening our doors in 1992, we’ve been an independent, family-owned national commercial equipment financing company. What does this mean? We are unencumbered by bank ownership or quarterly pressures to change our practices for short-term profit. We put our money into tools and resources you can use such as our PathShare HR Services, Collabrance Managed IT Services, or our mobile Snappshot app to make you more agile in your business and successful beyond the financing part of our relationship. We also invest heavily in our integrations, which allow you to stay inside your own system you use every day while transacting business with us.
How Do I Get Started with GreatAmerica?
We encourage you start by booking a short phone call with us. Since no two businesses are alike, we first get an understanding of your business flow, then work with you to create a program or programs that are the best fit. We look for tenured technology companies who recognize the strategic advantage of using financing to sell their products, are in good standing with their creditors, and see value in the tools and services GreatAmerica offers beyond financing.
Once we understand your objectives, we formalize the relationship and work with you to train your sales staff and begin quoting your transactions.
Why Should My Customers Finance?
Financing frees up your customer’s cash for investing in items such as advertising, personnel, and inventory. A general rule of thumb is to finance assets that are going to depreciate and pay cash on assets that will appreciate. Staying current with technology is simply the norm for successful companies. Financing is viewed as an ongoing expense and allows your customers to build and anticipate technology needs into their budget.
Let’s Navigate This Strange Time Together
The silver lining of this unprecedented time is that we’re all learning and growing, even if it feels like you're at a standstill or regressing. At GreatAmerica, we are motivated to keep Solution Providers just like yourself afloat, growing and adapting. We have several relevant resources to help you through this time, and we invite you to take a look:
Ciarra is the Content Marketing Specialist in our Unified Communication & IT Group with GreatAmerica Financial Services, where she assists in generating creative content and provides marketing support. Ciarra joined us in 2016 after attaining her Bachelor of Business Administration at the University of Dubuque. She enjoys writing a personal blog as another creative outlet in her free time.