Global economic factors—declines in the mining industry and commodities markets to name a few—are impacting the equipment industry. For buyers, that means more inventory is hitting the auction block than ever, with sales expected to increase heading into 2017. According to Off-Highway Research, a specialist economic forecasting and research consultant, global sales of construction equipment are forecast to grow 5 percent in unit terms in 2017.
Whether you’re a buyer or a seller, access to equipment financing can be a game changer. For buyers, extending purchasing power gives you access to equipment that will help you secure your next big deal. For sellers, offering buyers equipment financing options is a value-added feature that can help increase sales.
According to the Equipment Leasing and Finance Association (ELFA), construction equipment accounted for 12.4 percent of equipment financing new business volume in the United States in 2015, a modest increase according to the 2016 Equipment Leasing and Finance Survey presented by ELFA. ELFA reports that the percentage of approved applications booked and funded edged up during this period, meaning more buyers are taking advantage of equipment financing to increase their purchasing power.
Equipment financing is a win-win for everyone, if you chose the right partner. Read the tips below to learn how you can add equipment financing to your procurement or liquidation strategy.
Trust: When seeking financing for your next purchase, do your research. Only work with a reputable company with experience lending for equipment purchases. If this is a business purchase, make sure the lender works in business-to-business transactions. Does the company work with large national brands? If large companies can trust the lender, you can as well.
Timing: Chances are, you need the equipment now, and you don’t have time to go through a lengthy approval process to be approved for equipment financing. Seek out financing companies that can offer fast approvals. Look for companies that commit to contacting applicants immediately following submission.
Customization: Financing is not a one-size-fits-all solution. Be sure to choose a financing company that will work with you to develop a customized plan that meets your specific needs. Make certain your funds can be used whether you purchase at auction or using traditional retail methods, regardless of whether the purchase is made online or offline.
Access: Once you’ve been given an Equipment Line of Credit, make sure you can access the funds at any time. It can take time to find the right piece of equipment—you don’t want to lose your piece because you could not gain access to your funds.
Ease: Working with your financing company should be easy. Choose a lender who will work alongside you every step of the way to ensure a smooth transaction. Is the customer support team easy to reach? Are you assigned an account manager who is readily available and accessible? Only work with a financing company that ensures your needs will be met.
THE POWER OF EQUIPMENT FINANCING
When buyers have access to more capital, their spending power increases, positively impacting your sales. Buyers can research their own financing options, but also appreciate when sellers offer financing with purchases. Avoid pitfalls by following these simple guidelines when working with an equipment financing partner:
Experience: Work only with a trusted financing partner that understands your business and your customers. Be sure the partner has experience in financing equipment purchases whether at auction or through a traditional retail transaction. Choose a partner who works with other leading brands in your industry. If the best of the best trust this partner, so can you.
Service: Offering financing should bring you more business, but it does not have to mean more work. Select a partner with a full-service customer support team for both sellers and buyers. Make sure you have access to a customer representative who will assist you as you complete transactions, and who will also provide assistance to buyers to ensure a smooth experience for all parties.
Ease of Payment: Only work with a financing partner who can guarantee you’ll get paid quickly and via the method of your choice at the end of the transaction. A good partner will work with you to determine your needs upfront, and will provide assistance as the transaction closes to ensure invoicing and other details are finalized so you can quickly access your funds.
Equipment financing is a value-added service that has helped countless buyers to extend their purchasing power, and has enabled sellers to see increased sales. Whether you’re a buyer or a seller, equipment financing can dramatically impact your business.
Proxibid provides auction companies and asset owners with access to the most trusted way to buy and sell highly valued items online. More than $4 billion in inventory passes through Proxibid’s Marketplace annually via live and timed auctions, and Buy Now and Make Offer capabilities, across 15 categories that include heavy equipment, industrial machinery, real estate, fine art, antiques and collectibles, and more. ■
About The Author: Ryan Down is president and CEO of Proxibid. Since joining Proxibid, in August, 2010, Ryan Downs has been responsible for driving the strategy, vision and mission for the Company. For more information about Proxibid, visit www.proxibid.com.
Modern Contractor Solutions – December 2016
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