ELFA Launches Manufacturer, Vendor Resource Center

MAY 22, 2012 - 7:30 am

The Equipment Leasing and Finance Association has launched a new resource to help equipment manufacturers and vendors provide financing to their customers. The Manufacturer & Vendor Resource Center, online here, is a starting point for manufacturers to learn the benefits and options available for financing the sale of their equipment.

According to the ELFA, manufacturers and vendors offer financing to support the sale of their products for numerous reasons. Establishing a finance capability (also known as a “captive finance entity”) can help a manufacturer increase sales revenue, gain market share and improve their customer relationships. However, establishing a captive finance entity can be a complex process. A manufacturer must weigh a variety of factors to create a strategy that will help its business both today and into the future.

The online Manufacturer & Vendor Resource Center presents the strategic, legal, financial and operational issues that manufacturers should consider when seeking to develop or enhance their finance capability. Information includes:

Why offer financing? A list of the benefits to manufacturers and vendors of offering financing to their customers.

Financing options: A review of three financing models, including (1) developing financing capabilities in-house, (2) creating a formal partnership with one or more finance sources, and (3) creating an informal partnership with multiple finance sources.

Operational issues: An outline of operations, sales, risk management and regulatory issues to consider.

Find a financing partner: Search ELFA’s vendor finance company database to identify potential financing partners.

Connect with ELFA members: Users can connect with ELFA members for help in obtaining a variety of value-added services designed to establish or enhance a sales-assisted finance capability. The site lists ELFA member accountants, collection agencies, consultants, equipment management, insurance companies, law firms and software providers.

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