Questions to Ask When Considering In-House Financing for Your Business

Financing small businesses is a competitive differentiator for equipment dealers and suppliers. In-house financing can improve the customer experience while enabling you to increase sales, close more deals faster - but not all lenders are created equal! The wrong partner could impact service delivery or hurt your profitability; make sure that they're right fit by asking these five questions: 

How easy is it for customers to get approved? The last thing you want is for your customers to be frustrated with a lengthy or complicated application process. 

What are the interest rates and terms? You'll need to be able to offer competitive rates to win business, but keep in mind that too low of  a rate could impact your profitability. 

How quickly can customers get funded? Your customers will likely be shopping around for the best financing option, so you'll need to be able to fund them quickly to win the sale. 

What are the fees associated with the loan? Be sure to understand all of the fees associated with the loan so that you can properly factor them into your pricing. 

What is the customer experience like? Make sure that you partner with a lender who will provide a great experience for your customers, as this could reflect positively on your business. Having a customer-centric financing partner will help you avoid the risks associated with referrals. Recommendations from your dealership's in-house finance team are oftentimes seen as more trustworthy than those provided by other companies, which can lead to better sales rates and additional business opportunities for yourself!

To find the best in-house financing partner for your business, ask these questions.  If you choose the right partner, there’s no risk to you. What do you have to lose? Learn about partnering with National Legacy Capital Group.