5 tips: Using rental’s record year to sell more equipment finance

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Recent news about the venture capital investment at record levels, private equity “dry powder” at record levels AND the equipment rental business being on the verge of a record year is a really good sign for the equipment finance business. As rental booms it demonstrates an increasing need for the use of capital equipment. If the cycles of the past prove true, that means a hit of equipment acquisitions are coming as businesses achieve a new plateau of performance and they’ll need some money.

Business owners are happy to be in need of the rented equipment.  The business is there…finally.  But business leaders are starting to ask the rental versus addition/replacement question pretty loudly.  Run into folks with a few of these suggestions:

  1. Give them a long term rental v. lease analysis. Simple to do, even easier to market…this tool can help you show how leasing the equipment can be cheaper than some of their longer term rentals. Great way to push someone over the edge and a great tool to enable vendors with as well
  2. Section 179. OK the $25,000 limit sucks. But to a small business owner it’s still a relatively big deal. That means you vendor guys still need to use it as a tool to entice ownership now
  3. Equipment lead times. As demand increases (and it has in almost every asset class), equipment lead times can be really tough. Acting now can get you in front of the waiting list and doing it with financing can make it affordable.
  4. Maintenance cost killing you? Lean into the problems many businesses are facing now because they have let new equipment acquisitions become a low priority through the great recession and its luke warm recovery.  Ask questions about the real cost of downtime and its associated rental expense.
  5. No payments until… Plan for a no payments for 3-6 months promo. That becomes a real no-brainer for a company renting a fair amount, planning on more growth, but needs to get off their butts and buy some gear.

5 simple ideas to anchor a year end push that leverages the growth of rental needs in 2015. Marketing should help lead here. If you ever wanna chat about getting your unfair share of this circumstance…give us a holler.

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