Factors to Consider When Selecting a Financing Company
by Dan Timmer on Friday, February 13, 2009
So multiple financing companies are calling and telling you why you should be doing business with them. Your time is precious and you want an easy way to identify the best from the rest. Use these Top 10 factors to consider for selecting a financing company as a checklist for your next call and you’ll either have a productive conversation or a good reason to end the call. Look for a company that:
- Views the lessee as your customer – Work with a company that gives you complete access to your customer base and doesn’t compete with you for business.
- Provides ethical treatment at end of term – Make sure the company you work with provides notification at the end of the agreement, puts in writing the amount customers will be charged at end of term on Fair Market Value (FMV) deals, doesn’t bill renewals on $1 Out deals, and doesn’t auto-renew for 3-12 additional months. Work with someone that will help you keep your customers rather than drive them away.
- Has a team specifically dedicated to your industry – Choose a company with knowledge and experience serving the telecom & data industry. They understand the intricacies of your business and are more likely to develop innovative solutions.
- Offers billing solutions for your maintenance & service – Choose a partner that is able to provide bundled billing of your maintenance and service with your equipment. It is important that they have experience helping dealers & VARs develop and implement their own managed services program.
- Is flexible and willing to customize – Customized solutions based on the needs of your business will increase sales and profitability.
- Has tools available online – Look for a partner that simplifies things for you by providing online access to applications, proposals, documentation and reporting tools.
- Maintains high service levels – Test out their service levels for accuracy, timeliness, credit decisioning, documentation, funding and effective communication.
- Offers value-add / complementary services – Look for a financing partner that has the skills and knowledge to offer value-add services that may benefit your business like sales training, HR consulting and best practice sharing.
- Provides live coverage when you need them – Whether you’re East coast, West coast or somewhere in-between make sure the company you work with has knowledgeable workers staffed during your general business hours. Call them at the beginning or end of your day and see if they have a live person answering the call or if you only get voicemail.
- Has a proven track record for success – See how long they’ve been in business and make sure that they have consistent policies in both good and bad economic times. Talk with your peers to find out who they would recommend and why.
Find a partner that will not only help you increase your profits but will provide you with great service, innovative solutions and a commitment to help you reach your goals.