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Procurement Market Intelligence Report

Equipment Financing Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Equipment Financing Services?

What is the average price of Equipment Financing Services?

This procurement report includes pricing information to help you purchase Equipment Financing Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Equipment Financing Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Equipment Financing Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Equipment Financing Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Equipment Financing Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 13,000 providers of equipment financing services, the top four operators account for less than 30.0% of total market revenue, indicating a low degree of concentration. Compared to larger commercial loans, only moderate capital is required to provide loans for equipment, making it easier for smaller operators to... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Customer Service

Will I have a specified customer service representative, or will I need to call a general support line for assistance?

What type of maintenance is performed on the account? How often is it performed?

What is the average wait time from when I contact a customer service representative to when my problem or inquiry is handled?

How do you evaluate and take into consideration customer evaluations and feedback?

What form of communication do you prefer when speaking with clients (i.e. face-to-face meetings, phone conversations or e-mail communication)?

Loan Terms

How do you determine the interest rate you will charge me?

How do you calculate the interest rate for small and large businesses?

How do you handle refinancing?

Do you recommend a fixed-rate loan or an adjustable rate loan? Why?

If I choose to pay the loan off early, will I be charged a penalty fee? Is there a minimum number of payments I must make before paying off the loan? If so, how many?

Does the equipment financing require a down payment? If so, how much is it?

Does the equipment financing cover soft costs? If so, which soft costs and up to how much?

Competition

Has your firm participated in any mergers or acquisitions recently? Do you anticipate completing any mergers or acquisitions in the next three years?

What advantages do you hold over similar competitors?

How do you attract new clients and retain old clients?

What strategies have you put in place to entice more buyers that are seeking equipment financing?

Accuracy & Quality Control

How do you ensure the accuracy of your services? How often do you experience problems with accuracy?

What systems, tools or software do you have in place to minimize the number of errors? How often do these checks occur and who oversees them?

When putting together my financing plan, who approves the plan to ensure the interest rate is appropriate and I am capable of making the payments every payment period?

How much consideration do you give customer feedback when making changes to systems and operations?

What percent of business activity is from returning clients?

Regulation

How often do you provide equipment financing for out-of-state buyers? What forms do you file for such transactions?

How do you stay informed about ongoing regulatory changes?

How have you budgeted for any increases in costs because of regulatory changes? How will such changes impact interest rates and other charges?

Do you have any notices of violations, pending litigation, complaints or suspensions against your company? How have you responded to such filings?

Qualifications

How many collective years of experience does your staff have? How does this compare to the market average?

How do you assign employees to a client? What is the experience of the employees whom I will be working with?

What are the different services you provide to customers of varying sizes?

Does your level of experience and knowledge provide you with any advantages in your market? If so, what are they?

How have you developed efficient practices while still delivering high-quality services?

Related Services

What related services do you offer that I would benefit from?

If I purchase other related services, how will prices be impacted?

What type of discounts, if any, do you offer for bundling services together?

How will you notify me when new services are made available?

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Key elements for every RFP

What should my RFP include?

Project Budget

Vendors should include an APR estimate for the loan.

Vendors should specify all other costs (i.e. late fees) associated with the loan.

Selection Criteria

Buyers should evaluate the extent to which the solution meets their needs.

Buyers should evaluate vendors based on their cost proposals.

Buyers should evaluate vendors' experience and financial performances.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g. final interviews) prior to the contract award.

Buyers should include the date when the contract begins and ends.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain for equipment financing has a low level of risk. Vendors source inputs from a variety of upstream suppliers, including office stationery wholesalers, copier and office equipment wholesalers, computer and packaged software wholesalers, and the Federal Reserve. Typically, these upstream suppliers provide commoditized goods that can be purchased... Subscribe to learn more.

HIGH

MEDIUM

LOW