Nobody wants to put tons of cash down for equipment?!
who wants to pay $7,000 more for the equipment than they need to????
Check this out:
You get a proposal with 25% down required.
Your customer says:
“WTH?!? – I thought you said first and last payment and 700 a month?”
…maybe your customer doesn’t qualify for that structure…
… or the proposal is sitting there on their desk waiting for them to sign…
… it ain’t the best deal for them.
Because it costs them more money…
Less down doesn’t always mean a better approval…
…usually… it means the opposite…
Maybe the term doesn’t end until their two-year old graduates from medical school…
… or the rate is higher than a Colorado ski bum.
Either way your customer is going to be paying through the nose for the equipment.
No matter how much money they can make using it – this might not be the best deal around.
Let’s keep talking.
What if putting more money down on a dump truck means:
- Lower rate
- Lower payment
- Lower total cash outlay
Sounds good, right?
Well, that dump truck bed just got heavier…
Let’s take a look at 3 example approvals. The first is an approval from a funding source that requires minimal money due upfront, we’ll call them “Funder A”. The second are BlackRiver approvals that require more money down.
BlackRiver 1 = Because the customer wanted to acquire the essential equipment AND pay it off in the most economical way they were rewarded for bringing an additional 15% and received a rate 5 points lower!
The payment is more than $228/month less and the total repayment is almost $5,000 less.
Are you serious!?!
What a deal for a hard working business owner!
BlackRiver 2 = In this sitch the customer is REALLY serious about getting some money making equipment for less!
SO, BRBC rewarded the additional upfront investment by dropping the rate another 5 points!
The payment is more than $323 less than “Funder A” AND the total cost of the equipment is more than $7,600 LESS!
POW! DO YOU LIKE ME NOW?!
Let’s get your customer into that money making machine…like yesterday…
BUT WAIT THERE’S MORE –
(WHY DO YOU WANT MORE STRUCTURE???)
Why else would you or your customer want more money down other than lower payments, a lower rate and a lower total cost of acquisition?
How bout quicker approvals?
How bout more approvals?
How bout more approvals funded?
How bout more commission checks?!
The more “skin in the game” the more likely you are to get an approval.
…because BRBC has a better position from the get go.
SO, that “better position” means more approvals, faster and with fewer stips.
All of this means:
- MORE APPROVALS
- FASTER APPROVALS
- MORE FUNDED DEALS
- MORE COMMISSION FOR YOU
(Of course…you have to share the benefits of structure with your customers…)
Oh, and your customers can own their equipment faster with shorter terms!
CASH IS GREAT…BUT…
WE’LL TAKE OTHER STUFF TOO…
We don’t necessarily need all the money upfront in cash.
We will always accept additional collateral (titled assets) & some cash to close a deal!
WHY DOES BLACKRIVER WANT MORE STRUCTURE?
Since you asked…
More money = less problems.
We don’t like chasing our money any more than your dog likes it when you hide his favorite bone.
SO, we fund no more than 95% of the equipment cost including commission.
However, most approvals are in the 80-90% range which requires 20%+ customer participation.
Now we have plenty of deals on the books that required 10% or less from the customer…
…but we don’t LOVE those deals and can’t guarantee the bliss of more approvals, faster and with fewer stips we talked about before…
Remember, more approvals, quicker, less stips and more commission checks?!?
SO HOW DO WE REACH EQUIPMENT FINANCE BLISS TOGETHER?
Let your customers know that the more money/collateral they bring to the transaction the better deal they will get AND –
Tell us more about:
- The customer
- The equipment (details & specs)
- What they can bring to the table (cash/collateral)
With each submission.
Just three little lines added to your email.
Did you run for class President in Elementary school and promise Coke in the drinking fountains, half-days every day or pizza day 3x a week…
…yeah we can’t guarantee the customer is always going to like our proposal.
BUT with this info AND the customer understanding that cash at closing is king we can guarantee more approvals, faster, more commission checks and that we will all get that much closer to equipment finance bliss.
SOUND LIKE A PLAN??
TRIVIA QUESTION: *POST YOUR ANSWERS IN THE COMMENTS SECTION BELOW TO BE ELIGIBLE TO WIN*
What is the name of the song the band was playing in the popular Saturday Night Live skit ‘More Cowbell‘?