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The Green SheetGreen Sheet

The Green Sheet Online Edition

September 26, 2016 • Issue 16:09:02

Grow your business with financing

By Bob Neagle
Ascentium Capital LLC

Companies nationwide are effectively taking advantage of financing and incorporating it into the sales and buying process. ISOs, card processors, POS system integrators and software vendors all may use financing to enhance sales activity, improve client relationships and meet strategic business goals. With the right financing partner, ISOs and other equipment suppliers are positioned as complete solution providers and as true partners with their merchants. However, for this to be impactful, the financing must also meet the cash flow needs of the market. This means partnering with a lending source that specializes in the payments space is critical, and several key aspects should be considered.

The power of financing

The competitive nature of the merchant finance industry requires a partnership with a lender who knows the evolving equipment trends. The lender should also be merchant-focused since this industry has constantly changing technology, a shifting regulatory environment and continually changing client behavior. Affordable and flexible financing options can complement the requirement for POS technology that is affordable and a finance process that is quick and easy to use. When choosing a commercial lender, several key items should be considered to make the partnership a success:

  • Compatible goals: The objectives of the finance program need to be agreed upon to ensure financing is results-based and that the program can assist in increasing revenue and profit. The right merchant finance program can make equipment acquisition affordable and generate upfront revenue for the equipment and service provider.
  • Enhanced client relationships: Equipment providers, ISOs and other partners should never have to worry about risking client relationships. This means the lending partner needs to have business ethics and a finance process that supports this objective. Ideally, to support this, a lender should offer fast or nearly instantaneous credit decisions and next day funding.
  • Industry expertise: The financier should have in-depth understanding of the unique aspects of the payments industry. This results in a specialized understanding of the company, the equipment and technology and the merchant requirements. This will help ensure that affordable financing is realized.
  • Sales synergy: The financial product offering and the entire financing process needs to enhance the client experience. It should not hinder or slow the buying decision or the implementation process. The lender's process to onboard a partner also needs to be streamlined so it is fast and simple. The lender should also be able to provide real-time sales tools including an online portal that provides portfolio reporting. This will provide insight on the finance program and allow it to be monitored effectively.
end of article

Bob Neagle, President and General Manager of the Merchant Finance Division at Ascentium Capital, has over 30 years of financing expertise. To learn more about Ascentium's finance programs, please call: 281-902-1993, email merchantfinance@ascentiumcapital.com or visit Ascentium.Info/24a

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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