Current State of Equipment & Software Industry After COVID 19

Software & Equipment Financing
Software & Equipment Financing

Current State of Equipment & Software Industry After COVID 19

To say that COVID-19 adversely affected the worldwide economy would be a gross understatement. The worldwide pandemic that started in the beginning of 2020 is still going strong and while the situation in many parts of the world is consistently getting better, we’re not out of the woods just yet.

Thankfully though, the US economy is recovering and as vaccination becomes more common, there seems to be hope for the future. In this article, we’ll analyze the effects of COVID 19 on equipment and software companies, the current state of the economy, and industry as a whole, and we’ll try to predict what the future holds. For 2021 and beyond.

Side Effects to Business Operations

Operating a business during a virus outbreak is a big problem for a number of reasons. For one thing, close contact between your employees has to be minimized while also ensuring that the work you’re doing continues at a respectable pace. Another obvious setback is the overall demand and supply of your product or service.

Uncertainty and fear kill demand faster than anything and unless your work fell into the essential category of things that would be used every day regardless, your business numbers undoubtedly suffered. This is especially true for the equipment and software purchasing industry.

The main customers of these services and products are usually construction companies, and medium-sized to large corporations looking to make upgrades. Almost all construction efforts ceased after the outbreak and many planned business upgrades were put on hold due to the extraordinary circumstances. In 2020, almost 67% of US construction firms reported cancellations or delays in planned projects.

The construction industry had to suffer from many layoffs as well and contributed a total of 10.1% to the overall unemployment rate in the country. Another issue for equipment purchasers and suppliers was the fact that many of their assets were shipped from China and Korea. Due to the travel and shipping restrictions, delays and canceled deliveries were a normal occurrence.

All these factors meant that the equipment purchasers in the market lost some of their biggest customers practically overnight; a hit the industry is still recovering from.

The Current State of Economic Activity

Now that 2020 is behind us and we are well into 2021, many people are looking towards the future with hope and a newly invigorated sense of cautious optimism. Several variants of a COVID 19 vaccine have passed clinical trials and are now being distributed all over the world. In the US, vaccinations are being carried out consistently with close to 63% of adults having received at least one shot. While the US hasn’t reached “herd immunity”, the situation has improved with the lowest new Covid cases in over a year.

From an economic standpoint, things are also beginning to improve. First quarter 2021 had an increase in real GDP of 6.4 percent. Many construction projects that had been sidelined are now starting up again and companies are starting to rehire and upgrade their capital to accommodate these new changes.

Obviously, as the construction industry starts picking up steam, so do their suppliers and equipment purchasers. Companies operating in this sector should expect their order volumes to increase steadily as the year progresses. Shipping should also be much easier now as many of the trade restrictions caused by the virus have been relaxed especially for heavy imports.

All this is good news for the economy and industry as a whole and although the situation of our worldwide health is far from resolved, it’s a step in the right direction and should usher in a wave of much-needed progress for many countries.

Predictions for the Future

Predicting the future is very difficult in the best of circumstances, which makes it almost impossible to do amidst a global pandemic. While the vaccinations are rapidly underway, it will be many years before every person in the world is safely vaccinated and protected. Another thing to note is the variability of success stories in our current times.

A serious problem down the line might be the different permutations of the virus originating in different parts of the world such as the one in the UK. This strain is said to be much more contagious and harmful than the current one we’re fighting which is alarming, to say the least. However, according to a World Health Organization official, the Covid-19 vaccines authorized for use in the US and Europe offer protection against the main variants known to exist.

All these factors make predicting the future difficult. The rapid nature of change might clear things up quicker than we anticipate, or it might worsen them considerably. As cautious optimists, we think humanity will keep fighting this battle and we and our economies will adapt to accommodate the changes necessary to do so. It might be wishful thinking but if things keep progressing the way they are now, then our industries might recover sooner than we think.

We hope this article helped give some clarity to the current situation of the worldwide pandemic and what it means for the equipment and software purchasing industry.

If you’re interested in getting financing for your customers through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time-tested, hassle-free, and convenient financing option.

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A Small Business Owner’s Guide to Obtaining Equipment Financing in 2021

Equipment Financing
Equipment Financing

A Small Business Owner’s Guide to Obtaining Equipment Financing in 2021

It’s no secret that upgrading the tools you use on a daily basis is key to long-term success and growth as a business operating in the twenty-first century. The benefits are undeniable and strategically upgrading your equipment can help lower your costs, produce higher quality products, and can help you develop a loyal customer base.

This is easier said than done though and among the problems of upgrading existing equipment, the biggest one seems to be the associated cost. Because of the high demand and incredible engineering required, most machines are very expensive and require a significant amount of capital to either purchase or maintain regularly.

But thankfully, just like our machines, our financing options have also progressed to make the process much simpler and accessible to almost everyone. In this article, we’ll walk you through the benefits of upgrading your equipment (if you’re on the fence), the options available to you, and why private financing is probably your best bet.

Benefits of Upgrading Your Equipment

Before jumping into financing your next upgrade, it’s important for you to rationalize the potential gains of said upgrade. If the improvement in your tools is not going to carry over to a marked increase in your profitability, then it’s an unnecessary expense you should probably avoid.

There are, however, some fantastic benefits to be had through upgrading your equipment and we’ll dive a little deeper into them down below:

  • Productivity. Perhaps the biggest reason you should consider an equipment upgrade is because of the increase in production capacity you will likely see. Machines can work longer and faster than humans. They don’t need breaks, and as long as you’re keeping them well maintained, don’t need to be motivated to work harder. As a result, you can increase the volume of your operation which will, in turn, help you reach economies of scale much quicker.
  • Fewer Accidents. Another huge benefit of utilizing machines in your workflow is the decrease in hazard probability. Newer machines are equipped with advanced features that help them perform their functions while keeping safety standards in check. A good example of this are lasers that stop the machine instantly if something passes through them.
  • Better Consistency. Besides producing more volume, better equipment can help you greatly streamline your quality control. Machines very rarely make mistakes and can recreate something thousands of times over without missing a beat. They’re also good for catching mistakes in production that might escape the human eye or understanding.

Your Options (Banks vs Private Financing)

Now that you’ve understood the benefits of potentially upgrading your equipment, let’s get into the two most popular financing options available to you: bank loans and private financing through a third-party vendor.

Bank loans are an incredibly popular financing option and chances are you’ve probably thought about going down this route at least once. Banks can be helpful in obtaining capital when the amount you require is monetarily very heavy. Banks are also a good option if you have a good relationship with them and have been in business for many years. This can help you get more favorable terms of lending that might not be possible otherwise.

The biggest hurdle for this option is dealing with the bank itself funnily enough. Banks are unwilling to invest in very small businesses with little to no credit history so if your operation is just getting off the ground, the chances of getting approved for a loan are next to zero. Besides having a good credit history and reputation, banks also require your assets as security, in case you’re unable to pay them back down the line. This can cause problems in the future for your business, as many examples have proven in the past.

Another thing that should be mentioned is fluctuating interest rates. The amount you have to pay the bank every month will vary according to the interest rate at that particular point in time. This creates uncertainty and can cause problems in your planning as the exact amount you have to pay may change significantly on a monthly basis.

The other option at your disposal is private financing. This increasingly popular option has many benefits for small businesses in particular. In a nutshell, private financing companies like Dimension Funding purchase the equipment you need for you and you pay them back over a fixed term.

Let’s look into some of the benefits private financing provides compared to bank loans in a little more detail in the next section.

Why Private Financing Could Be the Best Option

  • Fixed Monthly Payments. As we’ve already mentioned previously, banks operate according to interest rates and as a result, the amount you have to pay every month can vary quite significantly. Private financing on the other hand has fixed payments that you decide during your term settlement. This amount never changes and never fluctuates. This creates consistency and helps you plan your quarterly finances more efficiently as you know exactly what you have to pay.
  • Lock in Low Rates. Rates are currently very low right now. However with the potential for inflation, rates are likely to rise soon. Through private financing you can lock in low rates now and pay with tomorrow’s dollars.
  • Finance Up to $250k with No Financing Statements. “Application only” options allow you to get financing for equipment valued at up to $250k incredibly quickly as no documentation is required from you. Just an application. If you require equipment that is more expensive than $250k then you just have to provide your financial statements which will be processed much faster than bank loan procedures. Some of these procedures can take anywhere from a couple of weeks to a couple of months; time that you could have spent working and optimizing your business.
  • Finance 100% of the Costs. One thing that banks don’t disclose openly is the fact that they’re only paying for the equipment itself. There are many hidden charges like delivery, setup costs, maintenance, training, and you are expected to fulfill all of those yourself. Private financing companies, on the other hand, allow you to finance everything we’ve mentioned and more in your principal amount. This means that you get an all-inclusive option that covers everything you need to get up and running.
  • Fast Online Application Process. Instead of the tedious documentation and prolonged waiting periods that banks subjugate their customers to, private financing allows you to get what you need quicker and easier through a robust online application process. Just fill out the form and you can get approved in as little as a couple of hours.

Another thing that bears mentioning is that private financing companies like Dimension Funding can help you acquire almost any form of equipment you can think of. Commercial, construction, IT, software, material handling, and medical.

If you’re interested in financing your equipment through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time-tested, hassle-free, and convenient financing option for your next equipment upgrade.

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How Private Financing Is Revolutionizing Equipment & Software Purchasing

Equipment & Software Financing
Equipment & Software Financing

How Private Financing Is Revolutionizing Equipment & Software Purchasing

As we enter the second decade of the twenty-first century, our technology and machinery have progressed with an unprecedented degree of innovation. The capabilities and possibilities enabled by these innovations are quite literally endless. Almost all major businesses in the world utilize technology in one way or another and the demand for specialized equipment like robots and software is at an all-time high.

While the presence of this demand and interest is a good thing, the cost of admission continues to be a problem for both equipment purchasing partners and companies alike. There are workarounds to the problem, mainly bank loans and leasing, that lessen the burden but it’s not necessarily the best solution. But thankfully, there is another option that many purchasers are taking advantage of that you might not have considered.

In this article, we’ll tell you why privately financing your next equipment or software purchase through a third-party vendor could be the best overall choice for you and your business.

The Costs of Equipment Purchasing

You’ve probably understood already that equipment and software aren’t cheap. Especially the more specialized examples. This varies according to the equipment type and function of course but for the most part, it’s a serious financial decision to make. And also, a potentially beneficial one. The benefits of upgrading your equipment or using new production processes are huge and would require an entirely separate article to go in-depth into. The short version of all the benefits you gain access to include:

  • More productive capacity
  • Better pricing structures
  • Improved worker safety
  • More consistent work output
  • Higher quality work output
  • Potential to reach more customers
  • Ability to expand operations in more than one location

 

Bank Financing of Equipment & Software

Now let’s move onto financing your purchase through a bank. We’ll assume that you’re buying instead of renting the equipment or software in question. Renting isn’t a bad option by any means but as the instances of its usefulness are niche in nature, we’ll stick to the more orthodox approach of buying equipment outright.

Bank loans are the conventionally popular choice and there are certainly advantages to this approach. For one thing, banks can loan a very large amount of money if required. For another, if you already have a good relationship with your bank and have been in business for a considerable amount of time, then acquiring the loan will be much easier.

Bank loans have problems that many people don’t think about before making this important decision, however. Here are some of them in a little more detail:

  • Getting the Loan Itself. As we’ve already mentioned, getting a loan as an established business is easy but getting one as a new startup is almost impossible. Banks will very rarely trust newcomers with a huge amount of capital without a proven track record and it’s a classic catch 22. This is a big reason why bank loans are an inefficient choice for small business owners.
  • Assets Taken As Security. Another procedure in the loan approval process is agreeing to let the bank use assets of yours as security. The bank does this to ensure it doesn’t suffer a loss in case you don’t end up paying it back. Whatever the reason, it lessens your standing and negatively affects your company’s equity.
  • Only Equipment Is Financed. One thing buyers tend to forget is that there are many hidden costs associated with buying a piece of equipment or software. Delivery, setup, maintenance, training, troubleshooting, etc. All these processes come at a price and the bank will not assist you in handling them.
  • Uncertain Monthly Payments. Banks operate based on interest rates which fluctuate and change with the economic health of the country. Because of this, monthly payments are very rarely steady and can vary on a month-to-month basis. This makes financial planning a challenge and can hinder your yearly budgeting and profit forecasting.
  • Long Application Process. This might seem like a nitpick, but it’s an inconvenience, to say the least. Banks have very long application procedures and the waiting periods between appointments and approvals can either be a couple of weeks or a couple of months. Besides being a waste of your valuable time, it’s not a good option for people looking for a quick solution to a problem. So, unless you’re prepared to wait a while for your equipment purchase, bank loans might not be your best bet.

The Private Vendor Financing Solution

On the opposite end of the spectrum, private financing offers a much easier and more efficient purchasing opportunity for both small and large businesses alike. Companies like Dimension Funding are leading the charge in providing an easy, safe, and economically viable option for vendors and private customers alike.

The main advantages of private financing include:

  • Fixed Monthly Payments. Unlike banks that put you at the mercy of fluctuating interest rates, private financing lets you choose a low monthly payment for up to 60 months. This helps you plan out your finances better and keeps surprises at bay. You know exactly how much you’re paying each and every month. This amount is agreed upon during the sign-up process.
  • Up to $250k Without Financial Documents. You can finance equipment worth up to $250k through an “application only” option. This is in stark contrast to banks that have lengthy application processes as well as hefty documentation requirements. If the equipment you’re looking to finance is more than $250k then you just have to provide your financial statements.
  • Finance 100% of the Costs. As we’ve already mentioned, banks only finance the equipment itself. On the other hand, private financing companies like Dimension Funding finance everything for you. This includes all associated costs like maintenance, delivery, setup, etc. You don’t have to worry about unexpected expenses arising as everything is taken care of and included in your principal.

Because of these reasons, private financing has helped thousands of businesses and individuals finance their equipment and software upgrades quickly and easily. We hope this article helped explain the reasons behind this rise in popularity and gave you ideas for your own business and workflow.

If you’re interested in financing your equipment or software purchase through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time-tested, hassle-free, and convenient financing option for your next equipment upgrade.

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How to Boost your Customer Retention by Offering Financing

Boost Sales by Offering Financing
Boost Sales by Offering Financing

How to Boost your Customer Retention by Offering Financing

Vendors that offer financing allow their customer to make a purchase without paying the entire amount upfront. In the case of software purchases, this means turning expensive ERP or CRM software purchases into more manageable fixed monthly payments.

Vendors that provide financing are particularly attractive to businesses with limited operational budgets. Since they don’t have to make large lump-sum payments all at once, they are able to maintain more liquidity.

Foundational Basics of Having a Financing Partner

Vendors can partner with a finance company to provide financing to their customers. This allows the customer to pay for the software subscription over the life of the subscription up to 5 years. It’s a powerful financing option during times of economic slowdown when getting a bank loan can be extremely difficult for small and mid-sized businesses.

Instead of heading to the bank, a customer can borrow the required funds from the vendor’s financing partner – subject to certain commercial terms and conditions. The customer agrees to repay this loan for a fixed period of time, and at a fixed interest rate (as low as 0% in some instances with a vendor discount required), which is in stark contrast to traditional bank loans.  This helps businesses finance investments that wouldn’t otherwise be possible, while maximizing sales for vendors.

The Nuts and Bolts of Vendor Financing

For businesses, vendor financing gives them access to funds quicker, and at more favorable terms, than traditional bank loans. This also helps vendors sell more, even during economic downturns. It’s particularly beneficial for vendors selling intangible assets like IT, which most banks are hesitant to approve loans for.

What surprises many business owners is that vendor financing is similar to borrowing a loan from a bank. It simply lacks the normal complexities involved in doing so. In some cases, it’s filling out a one-page financing application. This simplifies the borrowing process for small or mid-sized companies that may not qualify for a bank loan or might be avoiding it due to high interest rates.

Key Takeaways

  • Vendor financing involves vendors advancing capital to their customers, solely for the purpose of purchasing hardware or software from them
  • Vendor financing helps to facilitate long-term relationships between vendors and their customers

Also, customers can invest in multi-year subscriptions, which often comes with a cost benefit. The ability to do all of this with 0% funding can be a game-changer for both the customer and the vendor. (Zero percent financing requires a vendor discount to the financing company.)

In this type of arrangement, vendors solidify long-term relationships with their clients, which minimizes customer churn rate, a serious concern in the software industry. On the other hand, it helps small and mid-sized businesses to manage their limited resources more efficiently.

The Top 3 Benefits of Vendor Financing for Businesses

  • Access to capital that they might not qualify for otherwise
  • Turnaround times from application to funding are much quicker than with traditional bank loans
  • Turn a large upfront software subscription payment into monthly payments; longer repayment terms make borrowing more affordable

The Top 3 Benefits of a Financing Partner for Vendors

  • Better profitability due to shorter sales cycles, increased transaction sizes, and up to a 0% financing option (vendor discount required), which eliminates the need for customers to “shop around” for a lower interest rate
  • Improves customer relationships
  • An advantage over competitors who lack the ability to offer funding to their customers

Conclusion

Vendors that provide financing can accelerate sales and lower customer churn rate, allowing vendors to minimize the need for frequent customer acquisition. Also, it gives the vendor a competitive edge over others who do not offer such financing options that customers truly need during these times of financial adversities.

At Dimension Funding, we help businesses with up to $500,000 financing for software subscriptions, without all the hassle. Any financing above $500,000 would require minimal paperwork, which is executed electronically.

If you’re interested in exploring vendor financing options for your customers, contact us today to learn more!

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3 Strategic Ways to Acquire Material Handling Equipment on a Budget

Materials Handling Equipment Financing
Materials Handling Equipment Financing

3 Strategic Ways to Acquire Material Handling Equipment on a Budget

As the rate of economic expansion has increased so has the demand for specialized construction equipment. Much of 2020 bought a fast upward trajectory to a standstill but the tide is turning quickly. With vaccines being formulated to combat COVID 19, economic upturn is just around the corner.

Construction equipment contractors or vendors will be operating at full capacity very soon because of this. The acquisition of material handling equipment will certainly be a top priority especially if your fleet is underdeveloped. But the staggeringly high upfront costs make this a tough decision.

Thankfully, there are many ways you can stretch your budget when it comes to acquiring new equipment.

And in this article, we’ll show you how to do just that. We’ll run through the types of material handling equipment you might require, we’ll go over the options at your disposal, and will tell you why private financing could be your best bet.

The Types of Material Handling Equipment at Your Disposal

Material handling basically refers to the loading, unloading, and movement of goods within a factory or warehouse with the aid of mechanical devices. There are many iterations of machines that carry out such processes. Their classifications and examples include:

Storage and Handling Equipment

  • Shelves
  • Racks
  • Bins
  • Drawers
  • Stacking frames
  • Cantilever racks
  • Mezzanines

Bulk Material Handling Equipment

  • Stackers and reclaimers
  • Hoppers
  • Grain elevators
  • Bucket elevators
  • Conveyor belts
  • Dump trucks
  • Screw conveyors
  • Rotary car dumper

Industrial Trucks

  • Hand trucks
  • Side loaders
  • Pallet trucks
  • Walkie stackers
  • Order pickers
  • Platform trucks
  • Forklifts

Engineered Systems

  • AGVs
  • Conveyor belts
  • Robot delivery systems
  • Automated Storage and Retrieval System (AS/RS)

Your options to acquire Materials Handling Equipment (Rent vs Buy or Lease)

Once you’ve decided on the equipment you want to invest in, your next choice is determining whether you want to rent or buy said equipment. This choice will be heavily influenced by your individual circumstances and the lifecycle of your operations.

When You Should Rent Materials Handling Equipment

Renting is a great short-term option. It allows you to get the tools you need quicker and cheaper when compared to buying outright. The amount of time you can actually use the equipment varies on your project and the agreement itself. These are usually quite flexible so finding agreeable terms shouldn’t really be a problem.

This is especially good if you just need a machine for a certain project. If your project requires a small machine you can rent just that for the required time instead of investing significant money. Niche use cases like these benefit the most from renting opportunities.

Another good thing about renting is the fact that you don’t have to deal with the maintenance of the machine. This not only saves time but also lets you save on service costs which can add up over time.

When You Should Buy or Lease Materials Handling Equipment

If you intend on using the material handling equipment for a long time, then buying is for sure the way to go. It ends up being more cost-effective in the long run when you factor in the frequency of usage and the costs of renting. If you have the funds, then investing in certain workhorse equipment pieces that have a wide range of functions is definitely wise.

Besides the cost savings compared to renting, buying is also the more convenient option. You can use the equipment bought whenever you require it and you don’t have to rely on the handler’s schedule or priorities. You can also save time by avoiding having to rent every time you take on a new project as the process can be tedious.

You also have the advantage of getting the exact equipment you need, and you gain the ability to customize it to your liking. You can even change the color to be more suited to your company; something you can’t do with rented machines. And with so many options to buy used or refurbished equipment, buying outright might not even be that costly to begin with.

Leasing equipment can be another way of purchasing equipment. A finance agreement and lease agreement look very similar and both result in you owning the equipment. In the case of a lease agreement, at the end of the term you buy out the lease, usually for a nominal sum such as $1. There are tax advantages to leasing or buying because you can write off the payments on your taxes. (See your tax advisor for more information or guidance on tax matters.)

Why Private Financing Is the Way to Go

Getting a bank loan is an option but we believe privately financing your materials handling equipment through companies like Dimension Funding is your best choice. Here are some reasons why:

  • Fixed monthly payments. Unlike banks that put you at the mercy of fluctuating interest rates, private financing lets you choose a low monthly payment for up to 60 months. This keeps unpleasant surprises at a minimum and allows you to plan your finances better and more efficiently as you know exactly what you’re getting into.
  • Up to $250k without financial documents. You can finance equipment worth over $250k through an “application only” option. You can get exactly what you’re looking for super quick because of this and if the equipment you need is higher than $250k you just have to provide your financial statements.
  • Finance 100% of the costs. Banks only finance the equipment itself. When it comes to the maintenance costs, delivery, and setup, you’re on your own. Private financing, on the other hand, includes all these costs into your application. You get an all-inclusive option that covers everything including the equipment.
  • Unsecured. Banks usually require all of your company’s assets as collateral for a loan. Private financing companies only use the asset being financed as the collateral.

Budget constraints shouldn’t be a limiting factor in your expansion. Knowing your options and making smart decisions on how and when to finance your upgrades is all it really takes. Keep your business goals at the forefront of all your decision making and you’ll be on the right track!

If you’re interested in financing your material handling equipment through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time tested, hassle-free, and convenient financing option for your next equipment upgrade.

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Vendor Financing Programs: Why There’s No Better Time Than Now

Vendor Partner Program is your Road to Success
Vendor Partner Program is your Road to Success

Vendor Financing Programs: Why There’s No Better Time Than Now

Vendor financing is an important marketing and sales tool available to equipment manufacturers, dealers, and distributors. Even when the economy was doing well, a significant number of equipment buyers were opting for purchases financed by the equipment vendor.

Now that the economy has been in an economic slowdown and cash liquidity is a major area of concern for most companies, equipment & software financing is in greater demand. This is especially true for small and medium-sized organizations that need the equipment or software now, but don’t have enough in cash reserves to fund the entire purchase upfront.

From a vendor’s perspective, the ability to finance a purchase is an important one, especially if their competitors can and they can’t.

Why?

Because businesses that are unable to make a purchase outright would have no choice but to go elsewhere to a vendor who can work with their current financial situation.

The issue is that for many small or medium-sized vendors, they simply don’t have the financial resources to compete with large manufacturers/vendors with captive financing capabilities and successful vendor financing programs of their own.

Vendor Financing Programs Are a Win-Win

For equipment buyers, a vendor financing program gives them the flexibility to make installment payments (typically on a monthly basis), so they don’t deplete their working capital. Often times, there’s also the option of leasing, if need be, against an outright purchase of the equipment.

For the vendor, equipment financing enables a long-term relationship building exercise with the customer, leading to an increase in customer loyalty, repeat purchases, cross-selling, and technology enhancements as and when required. This translates into more business and additional revenue.

Selecting the Right Vendor Finance Partner

While the need for vendor financing can’t be underestimated, the real challenge for many vendors lies in their ability to set up an equipment or software financing program on their own. Most small and medium-sized vendors simply don’t have the requisite finance – or infrastructure – to manage and run a financing program on their own. They also lack the knowledge and experience. As such, finding a suitable finance partner is paramount to success.

A good finance partner will have access to capital, as well as the requisite expertise to successfully manage an equipment and software financing program. In addition, the selected partner should have a proven track record of vendor financing in the specific industry in which the vendor is operating, as industry-specific knowledge and experience is critical to the successful implementation of such vendor financing programs. The financing partner should also have a large capital base to be able to provide long-term solutions and stability to relationships both with the vendors and their end customers.

Once a vendor has selected a financing partner, the end-goal should be to build a long-term and sustainable relationship with a single financing partner instead of exploring multiple different options.

Get Assistance with Setting Up a Vendor Finance Program

To have a more detailed discussion on this subject and understand all the benefits of setting up a vendor financing program for your customers, contact us today at 800-755-0585.

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4 Easy Tips to Help You Use Financing to Boost Your Sales

How to Use Financing to Boost Sales
How to Use Financing to Boost Sales

4 Easy Tips to Help You Use Financing to Boost Your Sales

Private financing is quickly becoming a standard across almost every industry you can think of. It’s not hard to see why. The ease of use, the utilities it provides, and the customer satisfaction potential makes financing a great option for vendors to offer to your end consumer.

Integrating vendor financing into your workflow in an unobtrusive, organic way can be a challenge, especially if this is the first time you and your customers are exposed to it. In this article, we’ll help you better understand the framework behind financing, and we’ll give you 4 tips on how to incorporate it into your sales pitch.

1. Understand the “Why Financing?” Question

The first and most important question to understand if you want to offer financing to your customers is the overall benefit this option provides and what your customers miss out on by deciding to go with alternative solutions.

In a nutshell, financing gives you the opportunity to offer your customers an easier method of payment. Instead of paying the entire amount upfront, your customers will be able to divide that payment into equal monthly installments.

The following reasons illustrate why monthly payments are important:

  • Lessen the burden of payment especially for capital heavy products like machinery which would call for a steep upfront investment.
  • Have a customized predictable monthly payment schedule. This helps your clients plan better and frees up more working capital for them.
  • No interest rate changes means stable payments. A bank loan can and will alter the payments depending on the interest rates at the time.
  • Little to no paperwork (in most cases).

When you put forth these advantages to your customers, they will find it much easier to rationalize the decision on what to do. You can only do this if you yourself are crystal clear on the problem you’re solving, and the net benefit your customers will receive from it.

2. Develop Holistic Marketing Strategies

Tying into our previous point, marketing strategies should be developed to help get the word out on your financing options. There are a myriad of ways you can do this. You can run social media campaigns, have branding in-store that illustrates the option, or even have it displayed prominently on your price tags.

If you’re selling equipment for example, instead of quoting the price as 10,000 dollars, you can put it in simpler terms by breaking down the cost into monthly payments of $200 or lower. This psychological shift helps customers rationalize the purchase and reduces the barrier between hesitating and going along with it.

Marketing experts use strategies like this all the time and there’s no reason why you’re financing efforts should be any different. Get creative with it. Come up with promotions, special deals on payment options, and unique ways of selling this idea. The chances are very high that your competitors won’t be doing the same and a strong marketing strategy could make a huge difference in your sales and customer satisfaction.

3. Train Your Team

Business owners and managers tend to forget sometimes that even though they might fully understand their products and services, it is ultimately their staff that has to network with customers on a day-to-day basis. For this reason, imparting financing knowledge to your team members is of paramount importance.

Educating your staff will help highlight financing at the point of sale. The customer will be given information about financing as an option from the get-go and will therefore go into the next phase of the sale with the knowledge that this option is affordable for them.

Be sure to train your team to highlight some important aspects when an interested customer inquires more about the option:

  • The customer will be able to start using the product instantly with no down payment necessary.
  • No security is required in the form of assets or liabilities.
  • Very minimal paperwork.
  • Outline the basic requirements.
  • Common questions and concerns.

Having well-prepared members of staff helps in more ways than one. It ensures that sales aren’t slipping from between your fingers due to misinformation and helps bolster your business’s professional credibility if everyone involved knows what they’re talking about.

4. Simplify the Sign-Up Process

You’ve done the hard work. Your customers know what the financing option entails and are ready to take the next step. A lot of companies start dropping the ball at this point. You stressed the ease with which financing can be obtained and the sign-up process should reflect these claims.

Having a fuss-free sign-up process minimizes customer frustration and lessens the chance of them abandoning their application altogether. Streamline the data collection process and have systems in place to account for any roadblocks. It’s also a good idea to offer as many sign up options as possible to make the customer experience even better. All modern financing options should have online applications as well as physical paperwork if required and you should let the customer choose whatever option they find most convenient.

You may have noticed that all the tips we’ve mentioned play off each other very well and are complementary. That’s because they cannot exist without one another. To create the best possible financing experience for your customers, you have to ensure that everything we’ve mentioned in this article is optimized and taken care of.

Taking the time to make these changes or finetuning your existing workflow will make a hugely positive difference in both your overall sales and customer satisfaction potential.

If you’re interested in learning more about financing for your business or your customers, be sure to contact Dimension Funding to get a head start on your approval process.

 

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6 Predictions for the Software Industry in 2021

Predictions for the Software Industry in 2021
Predictions for the Software Industry in 2021

6 Predictions for the Software Industry in 2021

The software industry has grown to an unprecedented level and with advancements happening at breakneck speeds, it shows no signs of slowing down any time soon. Whether you’re a manufacturer, a third-party vendor, or an interested enthusiast, the development of new methods and technologies is incredibly exciting.

2020 was a tough year for almost everyone and the software industry is no different. Restrictions and constraints forced everyone involved to think differently and to come up with better methods of doing work. Many parts of the industry that were advancing rapidly were unfortunately forced to come to a standstill owing to the nature of COVID 19.

A new year beckons a new start however, and the future has never looked better. The software industry will recover faster than any other industry and the hunger for progress will overcome the difficulty that follows.

In this article, we’ll give you 6 predictions on the future of the software industry in 2021 according to experts and people in the field. Familiarizing yourself with these developments will help you understand the trajectory of the industry better and will enable you to make better decisions financially and strategically.

6 Predictions for the Software Industry in 2021

Cloud Technology Improvements

As one of the rare subsets of the software industry that actually flourished during the pandemic, Cloud-based technologies have cemented themselves as an integral part of almost all workflows. COVID 19 gave us insight into using Cloud for downscaling as well as upscaling as the demand for services dropped dramatically. A good example of this would be industries like tourism where they had to uphold and maintain very expensive data centers even though the demand for the industry fell to almost zero.

Analyst Forrester has predicted that the Cloud infrastructure market would grow to an amazing 120 Billion dollars in 2021. This paired with a 35% growth rate indicates a high demand for Cloud-native engineers as well.

AWS Will Have Stiffer Competition

Amazon Web Services leads the charge in public Cloud vendors with an amazing 32% market share. However, the competition is quickly closing in on Jeff Bezos’s behemoth. Microsoft saw a 48% annual growth with their cloud offering with a 19% market share. Google trails behind with a still-impressive 7% market share but hot on its heels is Alibaba with a 6% market share.

Experts believe that Amazon and Google will keep the first and second spots respectively but Alibaba will overtake Google for the third spot. The multi-cloud initiative will also gain more momentum in 2021. Even though Amazon was reluctant to join the initiative at the beginning, it has had to give in as its competitors saw incredible results by joining.

Python and JavaScript Hold Their Own

The programming language terrain has also seen a major shift in recent years. Heavyweight, clunky programming languages are being replaced by easier to use, more developer-friendly languages like Python and JavaScript. With thousands of newer developers entering the market rapidly, the demand for these languages will exponentially increase as well.

Python leads the charge in data science while JavaScript upholds its crown as the best language for web development. Older languages like Java and C++ are feeling the pressure but their demise is still far away. The many software types that these languages account for still necessitate their existence. Their creators recognize the shift to easier to understand languages however and are constantly sending out updates to improve the functionality and usefulness.

Quantum Computing for the Win

Every industry has breakthrough technologies that quite literally revolutionize the field and for the software industry, quantum computing seems to be heading in that direction. According to experts in the field, it has the potential to impact every sector.

Quantum computing promises to be miles ahead of even our most advanced supercomputers. The possibilities it will unlock are quite literally next level as we aren’t even aware of them. While we still have some years to go for this technology to hit the mainstream, 2021 will make significant strides.

In 2020 Honeywell claimed to have created the world’s most powerful quantum computer beating out Google. Just a few weeks ago, scientists from a university in China demonstrated how Quantum Computing could beat our most advanced supercomputer at particular tasks like Gaussian Boson Sampling. These are just some of the developments taking place in the field and with our brightest minds working around the clock to make the impossible a reality, 2021 will bring awe-inspiring Quantum computing breakthroughs.

Artificial Intelligence Gets Smarter

You knew it was coming. If quantum computing is the revolution of the future, Artificial intelligence (AI) is the revolution of today. 2020 saw many permutations of advanced AI become a reality and 2021 seems to continue that trend.

Natural language processing saw incredible breakthroughs with GPT-3. The OpenAI created software creates human-like text made possible through Deep Learning. It literally made headlines when this article was written entirely using GPT-3! This could mean that small articles or even programs can be managed entirely by AI.

Other advancements in 2021 will include a shift towards ethical AI and explainable AI and we may even see laws posed by governments to regulate the technology and to prevent its misuse.

Blockchain Improvements

Another disruptive technology making waves in the industry is Blockchain. The potential is incredible and although Cryptocurrency may have tarnished its reputation, the possibilities are still exciting.

Many people capitalized on the popularity of Bitcoin and created elaborate scams to cheat people looking to get rich quick. Governments have even started cracking down on such schemes to protect the general public.

This created a lot of animosity and mistrust in the Blockchain technology for obvious reasons. However, Blockchain offers far more than just digital currency transfers. Companies will start to use the technology to store records, manage supply chains, and ironically even prevent frauds. Experts forecast that Blockchain will be used more as a smart contract mechanism in 2021. To further cement its importance, China has even added Blockchain in its 50 trillion “New Infrastructure” plan.

We hope this article gave you better insight into the future of the software industry in 2021 and beyond.

Financing your Next Software Upgrade

If you’re interested in learning more about financing your next software upgrade through a third-party vendor, be sure to contact Dimension Funding to get a head start on your approval process.

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Why You Need a Software Financing Partner

Benefits of a Software Vendor Partner
Benefits of a Software Vendor Partner

Why You Need a Software Financing Partner

Many small and medium businesses desperately need new software and subscription services; however, they lack the capital and cash to purchase everything they need to run their company successfully upfront. Unfortunately for software vendors, this means that you are missing out on valuable opportunities to get your product and services into the hands of business owners everywhere.

What you may not realize is the solution to marketing your product to every business owner is to offer financing. Allowing your customers and clients to order, install, and maintain the subscription software while making monthly payments will encourage more consumers to purchase and use your software.

As a business owner, you’re probably thinking, “I don’t have the money or capital to just allow my product to walk out the door without it being paid in full.”

Every business owner asks that same question and what you might not know is that there are funding groups available who can be your subscription software financing partner and solve that problem.

The Benefits of Partnering with a Software Financing Vendor

There are many more benefits to partnering with a financing company beyond the ability to get your product into more consumer’s hands. When you partner with a financing company, you will see your profits shoot up. Customers will be more interested in your software knowing they can make monthly payments rather than having to save up hundreds or thousands of dollars for subscriptions and software. When you allow financing of your product through a financing company, the payment to your company is still the full price of the software. The payment will just come from your funding partner rather than the customer.

These monetary perks are exceptionally useful amidst global pandemics and economic downturn when businesses are struggling for cashflow and working capital. However, some financing partners, like Dimension Funding, offer a lot more perks as well including tailored marketing services.

Here are a few of the marketing services that we offer…

Co-branded Landing Pages – We create tailored landing pages on the Dimension Funding website that offer financing promotions to your prospects based on their unique needs. You get a personalized link to distribute to your prospects offering financing and co-branded with your logo, information and value proposition. We work with you to offer promotions that will engage your prospects and turn them into sales. Work with our marketing department or your account manager to put together landing pages that will promote your products and offer financing options that makes sense for your customers.

Advertising Flyers / Datasheets – We design co-branded flyers or datasheets in PDF format for your use in turning prospects into sales. We offer special promotions to your prospects designed to meet the needs of your prospects. We create professionally designed flyers and datasheets for your use to give to prospects and customers that offer financing promotions, special offers and the benefits of financing that eliminates a large cash outlay and saves working capital.

Email Marketing – Dimension Funding will help you with email marketing and messaging that will get a better response from your prospects. We may be able to expand your reach with email marketing ideas and concepts that will engage prospects.

Exclusive Offers – Be the first to be able to offer discounts and special financing offers to your prospects and customers. By offering financing promotions designed for your customers, you can turn more prospects into customers and close more deals.

Custom Promotions – Just for your Prospects If you have an idea for a custom financing program tailored to your prospects, we will work with you to put it together. There are limitations on what is available but within those limitations, we can create personalized promotions for your prospects and customers that will generate more sales. Customized promotions can also help to close many deals instead of the prospect going dark.

White Papers / Literature – Work with Dimension Funding to create White Papers, Blog Posts or other Literature that can be used to generate more prospects. We will promote these on social media, in our quarterly newsletter and in our email-marketing reaching many thousands of prospects.

Social Media – As a preferred vendor in our vendor partner program, we will work with you to create cobranded LinkedIn posts and other social media posts to get you in front of an expanded audience and engage your current LinkedIn audience with messaging that will generate more interest and leads.

Dimension Funding will also work with you to generate sales and increase your leads by adding valuable widgets to your website such as a financing tool that allows customers to apply for financing directly online through your site without having to speak to anyone.  A payment calculator is another option that Dimension Funding can add to your site as well as a mobile app that allows you to get financing information from their iPhones.

Who would have thought that your subscription financing vendor could also serve as your marketing partner? Dimension Funding is the partner you are looking for to grow your business through offering innovative solutions to financing to your customers and clients that also address your marketing needs.

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What the Future of the Construction Equipment Industry Looks Like for 2021

Construction Equipment
Construction Equipment

What the Future of the Construction Equipment Industry Looks Like for 2021

With new developments taking place more frequently, the evergreen construction industry looks more promising than ever.

It’s important for manufacturers and vendors to understand the trajectory of this projected growth so that they can ensure their processes and end product reflect these changes favorably.

In this article, we’ll do exactly that. You’ll understand the reasons for expected growth, what areas of construction are doing well, what construction equipment is in high demand, and the impact of COVID 19 on the industry and manufacturers as a whole. 

Reasons for Construction Industry Projected Growth

According to statistics and market growth patterns, the global construction equipment market is expected to expand at a 4% annual growth rate in the next decade. This is despite a literal and proverbial roadblock in the form of a global pandemic.

There are a number of reasons that could potentially contribute to this projected increase:

  • Renovations and uplifts of old buildings is an increasingly popular development process employed by many countries. Tourism greatly benefits from well-maintained landmarks and historic sites which is why governments and agencies are willing to put a lot of money and effort into these uplifts. Some construction companies and equipment are specifically designed for this job alone.
  • Governments’ efforts to continuously build roads, railways and highways help drive sales and continuous growth.
  • The advent of new technologies like AI and IoT will make machines more capable and as a result, their services and the people who make them will experience an uptick in demand.
  • New businesses and avenues are created all the time, and many of the renovations, offices, buildings, and factories require the use of heavy-duty construction equipment.

These reasons are very general, of course, and there could very well be others that contribute to the growth, but the majority of it will be driven by the factors outlined above.

What Areas of Construction Are Doing Well?

If vendors understand what areas of construction will perform well in the future, they can model their production or rentals to reflect this. All construction projects are usually divided into either private or state procedures.

Private construction projects are the main contributors to general overall construction volume as many multinational companies have big ideas and even bigger budgets. Let’s take a look at some in demand private construction avenues.

  • Residential Construction – The demand for every type of housing is continuing to rise exponentially. Developed parts of cities have a need to make increased houses and apartment complexes for residents while less developed cities require construction equipment and services even more pressingly.
  • Commercial Construction – Buildings or similar structures created for commercial purposes fall in this category. There are a huge variety of opportunities in this segment which includes skyscrapers, grocery stores, shopping centers, private hospitals, private schools, etc. As overall global spending power increases, the demand for recreational buildings or even office spaces will continue to rise along with it.
  • Industrial Construction – This is a more niche segment of the general construction industry and because of the huge capital required for execution, isn’t very easy to work on. Industrial construction includes projects like power plants, manufacturing plants, factories, solar wind farms, etc. Though they might not be as executable as commercial or residential construction, the demand for bigger industrial projects is still high as industries have to keep their production processes updated which necessitates constant expansion and upgrades.
  • State Construction Projects – Projects that are commissioned or executed by a county, city, government board, or any other state-funded entity fall into this category. Railways, dams, highways, and airports are a good example. While the demand for such construction in developed economies like the US is fair, the demand in developing economies is huge. As these countries progress, they will require better infrastructure for their residents and the demand for construction equipment will rise along with this.

What Construction Equipment Is in High Demand?

Each project type requires specific equipment and procedures for execution but there are general pieces that are always relevant and needed. If you’re an equipment manufacturer then specializing or at least including one or all of these in your production will be a very fruitful investment:

  • Excavators
  • Loaders
  • Bulldozers
  • Concrete mixers
  • Scrapers
  • Dump Trucks
  • Forklifts
  • Graders
  • Cranes (mobile, crawler, tower, etc.)

Besides these all-stars of construction equipment, it might also be a good idea to look at some emerging technologies in the field.

Developments in remote-controlled equipment, connected machines, autonomous vehicles, and electronic power supplies are very promising.

Adapting or at least researching such developments could prove to be incredibly beneficial in the coming decade, especially for construction equipment vendors who want to stay on top of the competition.

How Does This Growth and the COVID 19 Pandemic Impact Small Construction Companies?

An increase in demand for construction will obviously increase the demand for the construction equipment required to carry out the construction too. Manufacturers would have their hands full and the growth rate for the industry as a whole is very promising and encouraging. At least it was until the COVID-19 pandemic started.

There is no question that the outbreak of the Coronavirus has hurt the industry significantly. Social distancing makes construction of any kind almost impossible to carry out and with less consumption happening throughout the economy, many corporate projects in the pipeline have either been postponed or discarded.

While this is a difficult time and situation for everyone, it’s important to realize that like all tough things, this will pass sooner than we may think. Sticking through this turbulent period could yield huge results. After a recession like the one we’re going through, economic boom and growth are almost inevitable.

When this happens, the demand for construction projects and equipment will skyrocket. This isn’t just wishful thinking as analysts and experts are echoing the same sentiments. The time period is still a little confusing, but the upside is certainly one worth waiting for.

If you’re interested in financing your construction equipment through a third-party vendor, be sure to contact Dimension Funding. You’re only an online application and a quick approval process away from getting a time tested, hassle-free, and convenient financing option for your next equipment upgrade.

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