NFS Leasing partners with key strategic vendors to provide vendor financing and leasing to their customers across the U.S. and Canada in industries including medical, healthcare, biotechnology, life sciences, scientific instrumentation, manufacturing, technology, construction, agriculture, machinery, heavy equipment and more. NFS works with our vendors to increase sales, generate incremental revenue and augment existing vendor leasing capabilities.
NFS works with a wide range of vendor partners, including global manufacturers, dealers, distributors, and resellers. Many leading manufacturers count on NFS Leasing to provide fast and flexible financing solutions helping them to close more sales and accelerate transactions. Read more about Vendor Financing: What Every Manufacturer or Dealer Should Know.
Vendor financing is an arrangement in which a vendor, manufacturer, or supplier provides financing options to their end-user customers, helping them purchase the vendor’s products or services. This arrangement benefits both the vendor and the customer as the vendor accelerates the sale by providing financing solutions, and the customer can access the products without having to pay for the equipment with cash or delay their purchase while searching for a lender to secure financing.
NFS Leasing collaborates with its vendor partners to structure and deliver a customized vendor financing program. NFS’s senior finance experts work to create programs that speed selling cycles, remove obstacles and grow the business, all while taking the time to consider the strategic goals of the end-user customer carefully.
The vendor may refer its customers to NFS Leasing for financing, or NFS Leasing may work directly with the vendor to provide financing options. NFS Leasing will quickly evaluate the customer and provide financing solutions for the purchase of the vendor’s products.
When customers cannot obtain financing, they are forced to move on to a competitor willing to work with them, or delay the purchase or even not buy the equipment at all. These scenarios create customer frustration and missed opportunities for the vendor trying to make the sale.
Offering an integrated vendor financing program can increase sales and strengthen customer relationships, preventing a vendor’s prospect from going elsewhere to source the equipment to satisfy their needs.
While traditional equipment finance companies may avoid writing leases or loans to customers with C, D, or story credits, NFS Leasing sees the opportunity and provides a solution for its vendor and manufacturer partners in serving those…
As a vendor or manufacturer of the equipment, you likely understand the fundamentals of vendor financing. The basic definition is the lending of money by a vendor to a customer who uses the capital to purchase the vendor’s product.
For many businesses, getting the financing they need for essential use equipment can be tough if they hit a rough patch. As a vendor or manufacturer of the equipment, it can be a challenge trying to obtain…
It’s essential to exceed your customer’s expectations, and one way to achieve this is by offering equipment leasing options. Rather than purchasing equipment outright, businesses find leasing to be a more appealing choice. By partnering with NFS Leasing, you can provide your customers with the financial assistance they need to acquire your product while enjoying a range of valuable benefits.
80% of Businesses
RELY ON FINANCING
According to the Equipment Leasing and Finance Foundation’s report, equipment and software investment expanded by 12% in 2021. Nearly 8 out of 10 businesses rely on financing when acquiring equipment. Financing is essential in facilitating these investments. In fact, approximately 57% of all acquisitions are financed through loans, leases, or a line of credit. Businesses frequently turn to external funding sources for their equipment and software needs.
Leasing stands out as the most prevalent financing method among businesses acquiring equipment and software, accounting for 26% of all acquisitions. Many companies prefer leasing equipment rather than buying it outright. The Equipment Leasing and Finance Foundation shares an infographic outlining the facts.
NFS Leasing is a trusted vendor financing partner to many and a long-standing member of the Equipment Leasing and Finance Association (ELFA). Our commitment to the ELFA Code of Fair Business Practices ensures that you and your customers receive reliable and ethical financing services.
Embrace the clear and valuable benefits of NFS Leasing’s vendor financing program for you and your customers. Read more about the Benefits of a Vendor Finance Partnership with NFS Leasing.
Take advantage of the opportunity to transform your business and propel it to new heights. Embrace the NFS Leasing advantage today and witness the power of vendor financing in action.
NFS Leasing has completed many fast equipment financing transactions recently. Check them out here.
We fund transactions from $25K – $250K (small-ticket program) and up to $15M (flexible custom solutions). While a wide range, funding the under $1M supports various situations with new NFS customers and repeat customers.
It is common for many businesses to undergo cash constraints. Whether emerging or established, private or public, cash constraints can arise. NFS Leasing is here to help and will listen to your story, understand your needs, and work with you to construct a custom equipment finance solution that meets your needs.
Contact NFS Leasing and tell us your story.
A FMV lease is an equipment lease that provides flexibility to the lessee at the end of the lease term to extend the lease term, buy the asset outright at the then fair market value, or return the asset to the leasing company.
Compared to a $1 buyout capital lease, FMV leases typically have lower up-front costs, lower monthly payments and potentially significant tax advantages. Under the FMV lease, the lessor retains title to the equipment and the lessee does not own the equipment. In an FMV lease, the lessee may finance up to 100% of the cost of the equipment including “soft costs” (e.g., transportation, delivery, installation and other deferred costs).
$1 buyouts are different than FMV leases in many ways, including the customer’s ability to hold ownership of the asset with exclusive right to use and purchase options. $1 buyouts offered by NFS often include 100% financing of the asset, which allows the company to conserve cash up front for other projects with higher ROI potential. With $1 buyouts, the lessee owns the equipment subject to the lessor’s lease interest analogous to a secured financing. A $1 buyout lease is an excellent choice if a company is interested in long term equipment ownership.
Payments under a $1 buyout are fixed and as equipment owner, the company may depreciate the value of the equipment and potentially take advantage of IRS Section 179 incentives and Bonus Depreciation. $1 buyouts are an effective option for financing equipment with a long useful life (such as yellow iron, manufacturing machinery, warehousing and racking, etc.) as the equipment may be depreciated on your balance sheet, and you may be able to deduct the interest expenses from your taxes. See your tax consultant for details.
A sale leaseback is when the lessor purchases equipment that a company owns and then leases it directly back to the company.
A sale leaseback allows you to monetize the equity in the owned assets which could be as much as 80% of the fair market value of the asset. This is useful when a company needs to use the cash invested in an asset for other investments (where a higher rate of return can be generated), but the asset is still needed to operate their business. This provides the company immediate cash and then at the end of the term, the company may own the equipment outright again.
A sale leaseback can provide the opportunity to reinvest the newly acquired capital towards expansion, company expenses, purchasing inventory or many other business needs. Reimbursements can be structured as a lease or a loan depending on your unique business needs.
An asset based loan is a financing approach to access equity a company may have built up in its business assets and convert such equity into working capital for immediate day-to-day operations and/or growth opportunities. Significant new projects, such as an expansion in production or entering new markets, require investment. Investment into new projects or initiatives reduces cash flow. An ABL is a viable solution to service cash flow needs.
Any business with assets can apply for an asset based term loan. The company retains title in the assets and pledges those assets to the lender as collateral for the loan. Depending on the company’s credit profile, the lender may require additional credit support for the company’s obligations under the loan. Advantages include fixed interest rates for the full term that are not tied to variable market rates and continued use of the pledged assets during repayment of the loan.
NFS offers asset based loans collateralized by business assets, including owned and unencumbered equipment and real estate. For customers requiring creative solutions, NFS may consider additional credit support through pledged cash accounts or marketable securities, and through warrants, revenue sharing, royalty agreements, or other considerations.
Businesses who are looking to utilize the equity built up in company assets and who prefer retaining ownership during the life cycle of the transaction, favor asset based loans.