Saying “I Do” to an Equipment Financing Partner

The Equipment Financing Bachelor (or Bachelorette)

Purchasing equipment can be a lot like dating – bear with me here. When you’re dating, you don’t always end up with the first person you have a cup of coffee with or treat to a nice dinner. As you learn more about the other person, you might recognize flaws and issues that don’t necessarily align with your likes, wants, or needs. With dating, it usually takes many tries until you find the right partner. Equipment financing relationships aren’t so different.

Although a company may claim to finance all types of equipment, make sure they’re familiar with the specific equipment you’re purchasing to run your business. At Oakmont Capital Services, we work across many industries, including tree and landscape, waste management, delivery vehicles, agriculture, construction, and more. We also partner with manufacturers, so we understand certain types of equipment and the financing process necessary to make transactions quick and easy. Are we experts at everything? No, and neither is anyone else. Make sure you find the right partner or partners for the type of equipment you’re buying. You may need to use Oakmont Capital Services to finance your truck fleet and a different company to lend you money for a barge purchase.

You’ll also want to match the lender with the amount of capital you need. Some lenders won’t consider financing equipment below $100,000. As an independent, direct lender, Oakmont Capital Services, for example, has a lending range between $10,000 – $5,000,000. We’ll consider financing on either end of this spectrum, but we’ll also be honest if we don’t feel we’re the best source for your needs

Finding the Right Lender

As mentioned above, it takes time to find the right lender for an equipment purchase. But if you’ve never worked with an equipment finance company, how do you what “right” looks like?

One recommendation is to do your homework before contacting a company. Visit websites of different banks and lenders and read their online reviews (Google and Facebook) to get an idea of what customers are saying about their experiences. Plus, pay attention to how the lender interacts with and responds to customers online.

Next, reach out to understand the application process. The lender should be able to get you pre-approved quickly and supply a rate and terms, plus explain the finance and funding process to you. During this pre-approval process, you’ll get a sense of how responsive and communicative the lender is – and determine if they align with your expectations.

Always feel comfortable asking questions. At Oakmont Capital Services, we believe that no question is too big or too small. We want our customers to understand the financing process and their payment options before signing on the dotted line. If you’re speaking with a lender or a bank that’s rushing you off the phone or isn’t responding to your emails, take heed. This is likely the type of service or lack of service, they’ll provide moving forward. Don’t feel pressured to “go to the altar” with a company that doesn’t value your business.

The Rules of Engagement

Many lenders have different standards and rules when it comes to who they approve for an equipment loan. You’ll find success with some applications, while others will get rejected, typically depending on your credit score. So, it’s okay to shop around.

It’s also important to find the right lender that can help you with the piece of equipment that you’re looking to buy. Some lenders specialize in financing specific pieces of equipment that may not be particularly relevant to the type of jobs your company contracts. At Oakmont Capital Services, we have professionals who focus on different industries and are experts in financing equipment within those verticals. Our team members are also Certified Lease and Finance Professionals (CLFPs), dedicated to the equipment finance industry and upholding the highest standards. Make sure to find out the credentials of any financing partner you decide to work with as well.

Of course, the most crucial reason to seek out multiple lenders is to get the best possible rate. Right? Not necessarily. There are many factors to consider besides rate, like cash flow and flexibility, plus, the lowest rate doesn’t always mean the lowest monthly payment. If a lender requires a large down payment, that can have a negative impact on business growth. Also, ensure that you’ll be working with a dedicated account manager who understands your business and needs, not getting passed to different customer service representatives throughout the process.

Happily Ever After?

When analyzing any of these options during an equipment purchase, it’s important to practice due diligence. Of course, being too cautious can potentially harm your decision making and cause you to miss out on a purchase (especially a used piece of equipment). However, taking the time to acknowledge that you’ve explored all possible paths and choices, plus getting pre-approved, can make your equipment purchase feel even more satisfying, with the knowledge that you’ve received the best overall financing experience possible.

Have questions regarding finding the right financing partner? Contact an OCS finance professional at ocs@oakmontfinance.com today.