Lender-OEM partnerships crucial to evolving dealer needs

Whether it’s inventory or retail financing, equipment lenders are emphasizing strong OEM relationships, flexibility and digitalization as dealer needs evolve in the wake of economic shifts. 

New equipment prices have increased as much as 25% in some categories in 2025 amid higher tariffs, supply chain disruptions and persistent inflation, according to inventory and financing management platform Quipli.  

Such challenges, along with high interest rates, have “made inventory management more complex and capital-intensive for equipment dealers,” Heidi Brooks, program manager at global equipment financier DLL, told Equipment Finance News.  

“Tariffs have introduced pricing competition, especially when dealers source from OEMs whose assets are not subject to import tariffs, creating uneven cost structures across competing brands. Additionally, uncertainty around future tariff changes adds complexity to long-term planning.” 

— Heidi Brooks, program manager, DLL

To address dealers’ growing need for liquidity preservation and lower upfront costs, lenders are offering floorplans with “flexible credit lines, extended payment terms and pay-as-sold structures, which allow dealers to defer repayment until equipment is sold,” Brooks said.  

“This approach improves cash flow and helps dealers maintain inventory levels without overextending their capital,” she said. 

OEM collaboration  

About 75% of construction dealers expect higher new equipment prices in the fourth quarter, and 50% of truck dealers reported increased new-truck prices in Q3, according to IronAdvisor Insights. At the same time, financing activity could surge at yearend amid restored full bonus depreciation and lower interest rates.  

As market conditions continue to change, lender-OEM collaboration is crucial to mitigating tariff exposure while capitalizing on growth opportunities.  

By working closely with OEMs, lenders can offer “co-branded financing programs that include promotional rates, extended terms and streamlined approvals,” Brooks said. 

“These partnerships often involve establishing credit lines for dealers, enabling them to acquire inventory with minimal upfront costs,” she said. 

OEM-lender collaboration is also expanding to include “shared digital platforms, real-time inventory tracking and joint strategies to optimize dealer operations and growth,” Brooks said, noting that these partnerships improve rental fleet management and planning of asset retirements, sales and replacements. 

Lenders ‘an extension’ of OEMs  

Lenders working with OEMs that don’t have a captive finance arm should strive to be “an extension of the OEM’s business,” Daryn Lecy, chief operating officer at Oakmont Capital Services, told EFN. It’s important to understand the pain points of the manufacturer and its dealers to best understand how financing can help their business, he added. 

“Communication is a big part of that, making sure that we’re aligned,” he said.

“We’re not afraid to engage in person with the reps from the manufacturers and their dealers to collaborate or brainstorm on opportunities or challenges.” 

— Daryn Lecy, COO, Oakmont Capital Services

Technology can also help integrate financing into OEM and dealer operations, Lecy said. Incorporating the two allows lenders to create customized financing packages best suited for specific machines and customer bases, he said. 

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