With the market remaining hot and equipment finance competition reaching brave new heights, it is important to dig into the unique attributes of your funding sources. With a few handful of challenged-credit equipment finance funders, what should you look for?
- Treating people like people. When in the challenged-credit situation, business owners feel insecure, inadequate, looked down upon. Some challenged-credit lenders accentuate this feeling by hard selling and putting the customer in a corner. Not cool.
- Define a process. Just because they are looking at tougher deals, doesn’t mean they shouldn’t define the steps your customer is going to have to walk through. Lengthy undefined processes destroy goodwill.
- Working side-by-side. In a challenged-credit situation, it is normal to expect the lender to want to be hands on with the customer. But that doesn’t mean they replace you, it means they become an extension of your team.
- Flexibility. It seems that more and more lenders in this space offer a single rate or two. A box to cram into if you will. Just because a business has had some issues, doesn’t mean they all fit into a box. You should see rate flexibility even among challenging credits.
- Finding a better place. Is the lender really trying to help the client get to a better place? Or are they loaning to own?
These are just a few things we recommend you evaluate before introducing an opportunity to a funder. Dakota is an equipment-based funder that gets your most challenging deals done. Let’s talk.