By: GreatAmerica 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.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. For a deeper look at software financing, check out this blog. 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!
Our team members are 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
Is My Transaction a Good Fit for GreatAmerica?
When you select a financing partner, knowing that your transaction sizes match their focus is an important factor. The truth of the matter is GreatAmerica funds transactions that range from four figures to seven figures. Our mission has always been to help our partner in the $5,000 to $250,000 range, but we have continued to support them as those larger six and seven figure transactions have come up.
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.
About GreatAmerica Financial Services Corporation GreatAmerica is the largest independent, family-owned national commercial equipment finance company in the U.S. and is dedicated to helping manufacturers, vendors, and dealers be more successful and keep their customers for a lifetime. A $2.5+ Billion company with life-to-date finance originations of over $14 Billion, GreatAmerica was established in Cedar Rapids, Iowa in 1992 and has a staff of over 600 employees with offices in Iowa, Georgia, Minnesota, and Illinois. In addition to financing, GreatAmerica offers innovative non-financial services to help our customers grow.