Second Look Financing for Manufacturing Equipment Dealers

A lender decline and a bad equipment sale are not the same thing

Your usual finance partner can decline a buyer for reasons that have little to do with whether the customer wants the machine.

The business may be too new for that lender, the equipment may be older than it prefers or the requested structure may sit outside its credit box.

If the dealer treats every decline as the end of the sale, some workable transactions disappear unnecessarily.

A second look process gives the salesperson somewhere to go next

The sales team should not have to start searching the internet for another lender every time a file falls outside the normal program.

Create a clear second route.

When the primary lender cannot do the transaction, the salesperson knows exactly where to send it.

You do not have to replace your current finance company

If the existing lender works well for most customers, keep using it.

A second look program is there for the files that need another credit box.

This can be especially useful for used equipment, private sale situations, non standard assets or buyers whose business profile does not fit the primary lender.

Tell us why the first lender passed if you know

A short explanation can save time.

If the first lender said the business was too new, the machine was too old or the requested amount was outside policy, include that information.

Raymond Leigh can use the context when deciding where the file should go next.

Do not guess if you do not know. Simply send the transaction as it is.

The equipment quote still matters

A second look file should not arrive with less information just because another lender already reviewed it.

Provide a clean equipment quote showing the machine, price and seller.

If the machine is used, include the year, model and serial number if available.

The next lender needs to understand the asset on its own merits.

Keep the buyer in the loop

The customer should know that the dealer is trying another financing route.

Do not create the impression that an approval is guaranteed.

Explain that another financing source is reviewing the transaction and additional information may be required.

Use second look financing before the deal becomes stale

Time matters in equipment sales.

A buyer that hears nothing for two weeks may move on, choose another machine or spend the capital elsewhere.

If the primary lender declines, move the file into the second look process quickly.

What should the dealer send?

• Buyer contact information
• Equipment quote
• Machine details
• Requested purchase amount
• Expected closing date
• Reason for the first decline if known

A second look process protects the sales effort already invested

Your salesperson may have spent weeks helping the customer select the right machine.

It makes sense to have more than one financing route available before walking away from the transaction.

Raymond Leigh can work alongside your existing lender rather than replacing it.

Learn more about vendor financing for equipment dealers or contact Raymond Leigh to discuss adding a second look option to your sales process.