Finding the Right Financing Partner for Your Business
running-a-business | Read Time: 3 minutes
By Kevin Walsh, CEO and Founder of KP Walsh Machinery | Published: May 2021
Choosing the right equipment financing partner for your business may seem daunting because there are many options and not all financing is equal. Those in woodworking know that there has been an uptick in demand across various segments like furniture or kitchen cabinets. Finding the right equipment and then someone to finance it quickly is key to keeping up with demand or growing the business.
From supplying equipment to custom kitchen manufacturers and outdoor furniture makers, to creators of restaurant interiors and shelving for popular stores, KP Walsh Machinery Solutions helps businesses grow by supplying them with the tools they need to scale their business.
We have been a NewLane Finance customer for the past few years, and over time I’ve seen the benefits of working closely with a financing partner to not only meet the needs of my company, but my customers’ needs as well. Throughout the pandemic, I found that having a well-rounded financing partner with values that aligned with my own helped both my company and my clients persevere.
Here are some of my top tips on what to look for when identifying the right financing partner for your business or replacing the partner you have:
- Rapport and Trust. It is important to have a partner with whom you have a strong rapport and trust. Someone who will answer your calls and questions promptly and is upfront about all the rates and options available to you. Your contract should be easy to understand and plainly map out key considerations like fees, relevant penalties, interest rates, and refinancing options. This sounds easy to find but can be a challenge with the wrong financing partner.
- Relationship Building. A key factor in this decision is identifying a partner that can build strong relationships with vendors and customers, taking the onus off you to play middleman and allowing you to focus on your business. Your financing partner should be able to work closely with your customers and vendors to facilitate fast and seamless payments so that the process is completed on time, every time. Along those same lines, look for a partner that is staying involved for the long term by following up with all parties to see how everything is going, if machines are still working out well for them, and if there is any other equipment that could be beneficial.
- Ease of application/approval. Speaking of fast, financing is meant to speed up the process for you to obtain the equipment you need for your business now, even when you may not have the capital to pay in full. Your financing partner should have a program that is easy for your customers to sign up for, get approved, and get what they need. In some cases, partners can facilitate a credit approval in a few hours, which helps you to make a sale and helps your customer stick to their timeline.
- Flexibility. If the past year has taught us anything, it is that flexibility in a partner is crucial to long term success. A financing partner that has the ability to customize plans for particular industry segments or markets, or can create a custom payment program because of their familiarity with trends in an industry’s seasonality and business’ cash flow, can make a tremendous difference in your budgeting for the year.
When exploring various partners and options, keep in mind that a financing partner should be just that—a partner. Your customers trust that you have selected a financing partner that will provide them with the experience they expect and has a firm sense of their business’ needs, so be sure to take the time to evaluate all of your options.
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