Learn how an Americor Capital client used creative financing to win a significant new customer.
Furniture leasing was nothing new to this Americor Capital client. As a preferred Haworth furniture dealer, the Dallas, TX-based company has worked with numerous financing sources. That is, until now.
The furniture dealer was trying to win over a very large prospect, a telecom customer who was a heavy user of Teknion products. The prospect appreciated the Haworth product as well as the services offered by the dealer, but that wasn’t enough to warrant the pain of switching vendors.
But the dealer delved deeper into the prospect’s relationship with Teknion and discovered there was room for dramatic improvement in the way the furniture was financed. In the current relationship, the prospect was required to make a down payment on each Teknion order, and the deposit was refunded once the lease was in place. For a company that acquired millions of dollars of furniture nationally each year, this arrangement created tremendous administrative burden. The Haworth dealer had a better approach.
His solution was to partner with Americor Capital to structure streamlined financing that would take advantage of Haworth’s Direct Bill program. Americor founder, Jim Malone, recommended that the dealer establish a $15 million lease line of credit up front. This would allow the prospect to process quarterly furniture acquisitions quickly and efficiently rather than treating each one as a standalone transaction.
The prospect— now a regular customer—simply sends Americor Capital a quarterly list of all the furniture to be leased, and Jim creates a one-page addendum to the original master lease agreement. Once signed by the customer, the dealer receives payment in 24 to 36 hours! “This is a well-oiled machine,” proclaimed Jim. “No new credit approval is required, so it is a very simple, quick process.”
The new customer immediately appreciated the fact that Haworth could direct-bill orders, thus eliminating the need for any down payment—a tremendous time-saver! An added convenience is that Americor’s lease agreements can accommodate non-Haworth product and services. This solidified Americor’s relationship with the dealer, since the dealer is now the customer’s single source for furnishings, equipment and financing.
“We’re on the same page when it comes to a customer-first approach,” said Jim, when asked about his relationship with the dealer. Structured as five-year operating leases, the term matches the company’s timeline for replacing the furnishings. The dealer leverages Americor’s end-of-lease reports to proactively contact the customer to discuss replacement plans.
Thanks to the trust Jim has earned, the dealer often asks him to talk directly with customers to more effectively structure the equipment financing around specific requirements. This frees the dealer from fussing with the financing and allows him to do what he does best—design beautiful office environments that allow his clients to be successful. Getting paid promptly is a real bonus to the bottom line, too!
Ready to finance the equipment you or your customer’s business needs to grow? Contact Americor Capital for more information!