Kim Montgomery,
Vice President and Healthcare Originations Leader ,
EverBank Vendor Equipment Finance

So much has changed over the past two decades in vendor equipment finance, and we’re reminded of these changes every day. Yet, at the same time, this business has constants — fundamentals that the headlines and deadlines often obscure.

Yes, we need to talk about the evolving needs of our equipment vendor, distributor and end-user customers, but we also need to address the essentials that still hold true today. What may seem “old” and “basic” to professionals with decades of experience is new and necessary information for younger professionals in the industry.

My frame of reference is healthcare vendor equipment finance, so these observations are specific to that vertical, but many apply also to other sectors. What qualities are still fundamental for healthcare vendor equipment finance providers in 2024 and the years ahead?

“Real People, Fast Answers.”

This philosophy became part of EverBank’s DNA early in its 20-year history, and we believe it is still a must for any leading vendor equipment finance program today. The competitiveness and effectiveness of your business continues to be linked to the quality of your customer relationships and speed of your response.

Vendor equipment finance professionals have many considerations to weigh, from the equipment they finance to financing options, strategic technology and the requirements of their customers’ industries. But “real people, fast answers” continues to headline what customers value most in partnering with vendor equipment finance businesses.

Navigating the Changing Currents

My perspectives are based on many years leading healthcare originations for EverBank Vendor Equipment Finance (VEF). The vendor equipment finance industry has evolved. Advances in technology have changed the way we deliver solutions and have heightened our customers’ expectations. Vendor equipment finance leaders have also made sizeable investments in technology, dramatically streamlining transactions that once required a great deal of manual effort. In our business, for example, much of the quote, approval, documentation and funding process is digitized and can often be completed within hours.

Technology has also had an impact on the equipment being financed. We see many examples of improved diagnostic, treatment and monitoring devices on the market today, including advanced imaging, surgical robotics and telehealth systems. The complexity and diversity of the assets we finance will continue to grow as medical equipment incorporates artificial intelligence (AI) and other emerging technologies.

Even financing options continue to evolve. While traditional lease and loan products remain the bedrock of our industry, customers’ changing preferences require new capabilities, such as subscription payment structures. Vendor equipment finance professionals must keep up with this evolution to ensure they are providing the right financing products and support to vendors, distributors and end-user customers.

Other shifts in healthcare have affected vendor equipment finance. Some have been relatively steady transitions, such as the migration from paper files to 100% electronic medical records. Others have developed more rapidly, such as the rise in private-equity-backed healthcare providers. Understanding their business models is critical to working with many end-users.

As unexpected events reshape healthcare, our industry must readily respond. The COVID-19 pandemic is a prime example. Vendor equipment finance leaders stepped up quickly, providing financing for the medical equipment needed to handle the surge in critical patient care and the additional information technology required to maintain communications.

Considering these developments, vendor equipment finance teams must be ever-vigilant and well-prepared for the changes still ahead.

Considering the Constants

Despite a shifting healthcare industry, many aspects of deploying an effective vendor equipment finance program have not changed in 20 years. Our over-arching purpose remains the same: helping equipment vendors and distributors achieve their sales goals and helping end-users manage expenses and cash flow while implementing the best equipment for their patient care.

Continuing to reflect on the “real people, fast answers” philosophy, let’s look at the people part of the equation.

Access to “Real People”

Our vendor partners and end-user customers still rely on experienced, capable professionals who are readily available to facilitate equipment financing. Partners and customers have more avenues to reach us than they did 20 years ago, but their need to access “real people” is unwavering.

Deep industry knowledge is another timeless necessity in the vendor equipment finance business, requiring a thorough understanding of the market and the equipment involved. Knowledge comes from staying abreast of industry developments but also from experience, honed from working closely, over time, with many kinds of vendors, distributors and end-user customers.

So, as we welcome new generations of professionals, an abiding imperative is to retain team members who have years of experience serving the industry and your company. This is true throughout the organization, from sales to credit and operations to servicing. Working together, experienced, knowledgeable team members can deliver the financing, technology and services their customers truly value.

Having an entrepreneurial spirit is another essential “people” quality for success in vendor equipment finance. This has certainly been true for our business, as our culture has always embraced innovation to deliver creative financing solutions for customers. This is where newer team members can make especially valuable contributions, bringing the fresh perspective of a new generation.

The entrepreneurial spirit needed for effective vendor equipment finance requires a nimble approach. As conditions change or new issues arise, teams must respond swiftly, smoothly and decisively for their business and customers.

Delivering “Fast Answers”

Nimble brings us to the “fast answers” part of the equation. Technology advances are helping us deliver answers to customers faster than ever before. We must continue to incorporate technologies into our systems so that customers can easily access the information they need, when and wherever they need it, as well as capabilities for secure, digital transactions.

And we must never lose sight of this truth: “real people” still power the “fast answers” that customers value most. The best technology systems in the world will never replace the need for knowledgeable, experienced professionals working directly with customers.

Most importantly, to be effective financing partners, we need to earn our vendors’ trust. Doing so calls for delivering on all the requirements for success discussed here: knowledgeable, experienced team members who are readily available to help customers; an entrepreneurial spirit that rewards innovation; and the financing products and technology that customers need to reach today’s goals and tomorrow’s opportunities.

Kim Montgomery is vice president and healthcare originations leader at EverBank Vendor Equipment Finance. She can be reached at [email protected].