Vendor Financing Program
Equipment vendor financing is a financial arrangement where the vendor (the company selling the equipment) provides or arranges financing for the buyer to purchase their equipment. This can be beneficial for businesses that need to acquire equipment but might not have the immediate capital to do so.
Here are some key points about equipment vendor financing: Check our CREDIT GUIDELINES.
- Direct Financing: The vendor itself may extend a loan or lease directly to the buyer, allowing them to pay for the equipment over time rather than upfront.
- Third-Party Financing: The vendor might partner with a third-party financial institution to offer financing options to the buyer. In this case, the vendor acts as a facilitator between the buyer and the lender.
- Leasing Options: Vendors often offer leasing options where the buyer can use the equipment and make regular lease payments. At the end of the lease term, the buyer might have the option to purchase the equipment at a reduced price.
- Benefits for Buyers:
- Improved Cash Flow: By spreading the cost of the equipment over time, businesses can manage their cash flow more effectively.
- Easier Approval: Vendor financing may be easier to obtain than traditional bank loans, especially for small businesses or startups.
- Bundled Services: Financing packages might include additional services like maintenance, training, or software, providing more value.
- Benefits for Vendors:
- Increased Sales: Offering financing can make it easier for customers to buy expensive equipment, or used trucks, potentially boosting sales.
- Customer Loyalty: Providing financing can help build long-term relationships with customers.
- Competitive Advantage: Vendors who offer financing options can stand out in the marketplace compared to those who do not.
Liberty Capital's Financing Program
Liberty Capital offers a comprehensive financing program for used commercial trucks, used trailers, and used heavy equipment. This program is designed to accommodate all credit types, including startups, ensuring that even businesses with less-than-perfect credit can obtain the necessary equipment.
Types of Leases Available:
- Operating Lease: The lessee uses the equipment for a specific period and returns it at the end of the lease term. This option is often used for equipment that may become obsolete quickly.
- Finance Lease (Capital Lease): The lessee effectively becomes the owner of the equipment, with the option to purchase it at the end of the lease term for a nominal amount.
- TRAC Lease: Commonly used for commercial vehicles, a TRAC lease allows for adjustments in the lease term or residual value to meet the specific needs of the lessee.
- True Lease: This type of lease does not include a bargain purchase option. It offers lower monthly payments and is often used when the lessee does not intend to purchase the equipment.
By partnering with Liberty Capital, vendors can provide flexible and accommodating financing solutions, helping their clients to acquire the necessary equipment while managing financial constraints effectively.
Financing Programs for Equipment Vendors
Key Features:
- 100% Pre-Funding: Liberty Capital can pre-fund the vendor 100% prior to delivery, ensuring that vendors receive their payment upfront.
- Soft Inquiry: We perform a soft inquiry on credit, which does not impact the buyer’s credit score.
- Bad Credit Options: We can finance buyers with bad credit as long as they can make a down payment ranging from 5% to 40%. This is particularly beneficial for those with marginal credit and startups.
- Proprietary prequalification calculator.
- Application-only up-to $350,000
- Section 179 potential tax savings
- Pre-Funding our vendors and dealers up to 100% before delivery
- Credit decisions in 2 hours or less
- Online equipment finance and lease docs
- 100% Pre-Funding Before delivery
- Soft cost financing, tax and installation included
- DocuSign app and docs for faster approval and funding
- Marketing material to help you sell
- Online financing proposal generators
- High Approval Rate of up to 95%
Promotion for our Equipment Financing Vendors:
- 12 x $99 Promo: Customers pay only $99 for the first 12 months! This is a terrific way for customers to defer full payments – allowing equipment time to generate revenue.
- Value Program: ZERO payments for 3 months combined with competitive structures up to 84 months (about 7 years).
- $0 Down Payment for Equipment Financing
- Low Documentation and Admin Fee
- Referral bonus available
Preferred Leasing Vendors
Utilizing our extensive experience in commercial truck financing on commercial trucks, we can assist you in finding reputable vendors for new or used trucks.
How to Submit?
- Have your client apply ONLINE:You can fill out our application, upload and authorized us to process. We do soft-inquiry, and our lender will do hard inquiries once you are approved.
- Upload Equipment Invoice or Quote for the truck or equipment you want to buy. Multiple vendors accepted. We’ll lump them into one monthly payment for you.
- Upload Banks statements (3-4 months) – Proof income, proof of banking, and proof funds availability in case down payment is needed and to match for ACH Payment Drafting – as an auto pay.
