Though it may seem easy for a customer who is making a purchase for their
business to place a loan on the standard revolving programs or promotions
that are available in the marketplace, this actually limits their ability to finance
future purchases and could limit sales opportunities down the road. Here
are 4 reasons why your dealership should implement a commercial finance
program for your customers.
1. Won’t Hurt Your Customer’s Personal Credit
When business owners place loans on personal credit they hurt
themselves and their businesses over the long term. If they have
personal goals to purchase a house or other large ticket items,
the trailer that shows on their personal credit is calculated in
their debt-to-income ratio and can adversely affect their ability
to get a loan. As a dealership, this means when they come back
to add that second, third or fourth unit, their credit is tapped out
and you lose the sale.
2. Helps Future Expansion
As their business grows, and they need to expand, other
creditors will look at business credit reports such as Paynet,
D&B and Experian Business. If all the company’s credit is on
the owner’s bureau, there will be no credit file to make a
decision. To get an approval, the customer will have to provide
extensive documentation including financials, bank statements
and references. This adds unnecessary time and burden on the
customer that could be avoided with a strong business credit file.
Also, with a strong business credit file, adding more trailers down
the road can be as simple as a phone call making a much easier
sale on the next unit.
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3. No Limits on Collateral
With a commercial financing program, your customers are
not limited to a specific list of brands or collateral as most
traditional trailer programs require. Priority One’s equipment
finance program can not only finance trailers but also the trucks
that tow them and the commercial equipment that goes inside
them. This enables customers to purchase all the equipment
they need on one note with one application. At funding, Priority
One handles paying each individual vendor on the customer’s
behalf, saving them valuable time and enabling you to differentiate
yourself by providing a one stop finance solution the competition
doesn’t offer.
4. Financial Advantages
There are financial advantages to commercial leasing and lending.
Each state differs in how a business can write off their payments
as rental under a lease. There is no tax advantage to a personal
loan; however, businesses should check with their CPA to see
how a lease can benefit them.
continued on page 43
NATDA Magazine www.natda.org