Frequently Asked Questions
What is Equipment financing?
Equipment financing programs are developed for vendors to enable their customers to acquire product quickly and finance payments over time. Interstate partners with vendors and manufacturers to provide lending and leasing solutions tailored to their specific markets and individual business strategies.
What are the benefits of Equipment Financing?
For Vendors and Manufacturers:
- Sell more equipment
- Close sales quickly
- Improve cash flow by eliminating A/R terms (equipment is paid for when delivered)
For the Customer:
- 100% financing
- Fixed lower monthly payments
- Reduce upfront costs and preserve capital
- Flexible payment structures available
- Ability to bundle transactions
- Keep up with changes to technology
- No impact on their borrowing position with their bank
- Maximum allowable tax advantages
How does vendor financing work?
- Vendor contracts Interstate for a finance proposal
- Vendor offers the proposal to their prospect along with a credit application
- Vendor or Prospect submits the credit application to Interstate Leasing Company
- Interstate completes credit review and when approved, issues purchase order to vendor
- Vendor orders and delivers the equipment
- Interstate prepares all the finance documentation and emails it to the customer
- Customer signs and returns the documents to Interstate who funds the transaction and pays the vendor
- At end of lease term, customer owns the equipment