Lenders seek more collaboration with dealers on finance packaging

Equipment finance lenders want more collaboration with dealers in order to develop the best financing packages and maximize value for all. 

Collaboration and communication, especially in a time of increasing data and technology use, remain key to delivering the best results to dealers, lenders and OEM partners, John Sparta, head of global program management at global equipment financier DLL, told Equipment Finance News. 

“We’re communicating back and forth with partners, not just ‘Here’s what we financed this month or this quarter,’ but ‘Here’s what we drove the penetration rate to, here’s the commercial activities that we’ve engaged and here’s the feedback that we’re getting,’” Sparta said.  

“We want to try to build those richer relationships that bring our customers together, related to data-driven decisions and data-driven strategies in the future.” 

Understanding the customers 

Dealers and OEM partners provide lenders with key insights into customer needs and help lenders create value for everyone, Sparta said. 

“It’s understanding why a customer needs that particular piece of equipment, how they generate profit from it and why that’s a good risk for us to invest in,” he said. “A lot of it comes down to how much value we’re creating, beyond things like interest rate and typical banking products.” 

Small to mid-sized lender Maxim Commercial Capital continues to lean on dealers and other referral partners, as well as customers, to optimize its financing offerings, new Chief Executive Michael Kianmahd told EFN. 

“We’re figuring out how to continue to fine-tune, improve and deliver, the most optimal financing to our customer base while also serving the needs of our vendor partners and referral source partners, to make sure they can deliver a successful solution,” he said. “It’s really a financing problem, a capital problem, and that’s ultimately how we can maintain success as a company, so we’re always looking for win-wins.” 

Kianmahd succeeded his father and Maxim founder, Behzad Kianmahd, on Jan. 1 but aims to continue financing credit-challenged customers and emphasize the “mutually beneficial relationships” that led to an 86% increase in funded dealers in 2023, he said. 

Maximizing value

Captive lender CNH Capital also collaborates with dealer groups like Birkey’s Farm Store to deliver financing packages and solutions, Director of Sales Jeremy Engelhardt told EFN. 

“Together, we are positioned to provide a best-in-class experience for customers while minimizing cost and maximizing efficiency,” he said. “The enhancements we have made recently to bring products like insurance and our line of credit back in-house further solidify the value of working with a captive finance company.” 

As a result, Birkey’s looks to lean harder on CNH Capital under new Birkey’s Farm Store CEO Brady Foster, Foster previously told EFN. 

For dealers, lenders and even OEMs, the ability to maximize value and efficiency and minimize costs and pain points depends on communication and strategic planning, CLL’s Sparta said. 

“The ultimate commodity here is money, and there’s plenty of banks, lenders and leasing companies out there that have it,” he said. “The question is what value can we bring to the strategic plan of our partner and help them with their goals.”

Registration is now available for Equipment Finance Connect. The dealer-centric equipment lending and leasing event of the year offers opportunities for dealers to learn new strategies, foster valuable partnerships and emerge with ideas to immediately apply to their businesses. Learn about free dealer registration at EquipmentFinanceConnect.com.