Equipment financing brokers come in all shapes and sizes; many work part time in addition to another job and some work at it full time. Brokers love the flexibility because they can work from home with a laptop, phone and printer/scanner. The part-timers are often sales representatives for an equipment vendor which offer financing to their clients to make the purchase easier. They often find this an easy process since it’s not a hard sell and basically giving the client payment options that is often appreciated. In the end, they close more business and also make additional income through the finance process which the client doesn’t have to be aware of. The finance commission can equal and even surpass the money they make on the equipment but in any event, it is extra money for the same amount of effort.
In working with equipment leasing brokers, we often find they have had bad experiences with other leasing companies and many times this is due to poor communication and unclear expectations. A novice broker may feel their client deserves a 6% rate approved in two days and they end up with an 8% rate approved in ten days. We feel it is our job to make sure the broker understands why the client’s credit is not as sterling as they may think and why the underwriting process can take longer. Multiple partners, complex asset holdings and information trickling in slowly are reasons that a credit review can take longer than expected. Also, the broker may be impressed the client owns a large building but doesn’t realize that cash flow has been decreasing slowly while the client has taken on more and more debt raising a red flag to any investor. Unless you are working with a high rate hard money lender, a large asset never makes up for a poorly run failing business.
A clear understanding of the credit review and approval process through funding will allow the broker to make reasonable promises to the client; life is less stressful and a long term repeat client can be established with a transparent process. While working with First US Finance, you can expect to receive on-going online training, phone support, branded forms, assistance in closing deals and fast commission payments issued within 24 hours of wire transfers clearing. We assist our brokers to focus on the client relationship while we help you with the finance process.