Top 12 Industries That Can Benefit From Smart Equipment Financing In 2021 (And Beyond)

Articles Financing Automation & AI

US businesses, nonprofits, and government agencies are expected to lease or finance $1.8 trillion in capital equipment from manufacturers and dealers in 2021. This will give equipment makers and dealers like you a lead position in this nation’s post-Covid economic recovery. 

It also highlights two major business considerations for equipment suppliers. First, they should expect more competition than ever as rivals ramp up to meet unprecedented levels of pent-up demand. Second, and related, they will need to increase efficiency, dexterity, and capacity in their financing operations while enhancing user experiences at every stage of the transaction. 

Business insights previous generations could only dream of 

The specific sectors in play touch most of the economy. In fact, almost 80% of US businesses lease or finance the equipment they need to function and thrive. In this category, the top 12 industries reliant on equipment financing are:  

  1. Agricultural equipment 
  2. Aircraft and unmanned aerial vehicles (drones) 
  3. Business, retail and office equipment 
  4. Construction and off-road equipment 
  5. IT equipment and software 
  6. Manufacturing and industrial machinery  
  7. Materials handling  
  8. Medical technology and equipment 
  9. Mining machinery 
  10. Rail cars and rolling stock 
  11. Trucks and transportation equipment 
  12. Vessels and containers 

Learn about TurnKey Lender Equipment Financing Platform.

Although each industry has special requirements in financing, one cloud-based platform has emerged to meet these diverse needs, characterized by ease of use, broad configurability, compatibility with system software, and ever-smarter technology. 

“The central themes in finance technology for the next decade are coalescing around artificial intelligence,” says Dmitry Voronenko, CEO and co-founder of TurnKey Lender, a lending-tech trailblazer with operations around the world. “Whether you’re talking about faster risk-controlled outcomes, big-data analysis, or better communications with customers, AI — which, coupled with machine learning, confers the ability to make sound inferences from large and varied inputs — is at the core of best-of-breed financing these days.” 

Financing tech for equipment suppliers determined to dig deeper, go farther 

Consulting giant Deloitte agrees. “Sophisticated machine learning models help companies efficiently discover patterns, reveal anomalies, make predictions and decisions, and generate insights — and are increasingly becoming key drivers of organizational performance,” the company says in a recent report detailing top technology trends in 2021. “Enterprises are realizing the need to shift from personal heroics to engineered performance to efficiently move machine-learning models from development through to production and management.” 

In the sphere of equipment financing and leasing, advanced financing platforms provide nearly instant credit decisioning and automation for manual processes, which streamlines your operations, improves your customers’ experience, and contributes to the scalability and growth of your business. Other must-have qualities in financing technology for capital-equipment suppliers include a solution that covers all functions from approval through the contract’s discharge and retirement, and meets specific requirements of your industry.  

In sum, robust financing software also confers benefits that allow your equipment-financing aim to: 

  • Streamline and automate legacy processes 
  • Increase sales and repeat business 
  • Create credit products promotions and risk-based pricing for your loans or leases in seconds Eliminate human error and operational inefficiencies 
  • Deploy bank-grade credit scoring that meets your specifications and terms 

Financing software that provides an intuitive user interface along with a proprietary AI-based decision engine gives you the lowest possible credit risks with the widest potential growth spread.  

Smart financing technology adds up to measurable improvement 

For example, TurnKey Lender says that on average its platform unlocks benefits such as:   

  • 58% increase to the average order value 
  • 44% increase in sales conversion 
  • 20% increase in purchase frequency in 30 days 

“Additionally, equipment suppliers that use TurnKey Lender get to keep the 2% to 6% transaction fees that would go to a bank or other third party,” says TurnKey CEO Voronenko. “Our cloud-based platform is configurable to the manufacturer’s order-processing, providing automation, flexible business logic, loan management, reporting, and customer portals in an integrated solution that makes your financing operations speedy and easy to use.” 

Along with bank-grade decisioning, Voronenko says TurnKey Lender provides equipment suppliers with decision automation specifically for equipment financing and industrial-machine financing, medical hardware financing, and manufacturing-loan options. 

Financing software improves customer satisfaction by making loan approvals fast, accurate, and as flexible as you like, once again thanks to the company’s market-leading AI.  

Another advantage of embedded financing technology for capital-equipment makers is in keeping up to date with changes in technology. While bank-based financing platforms struggle to stay current with evolving technologies and new business requirements, some in-house options work continuously to assess and adopt the best new features available. Why? Simply because R&D the lifeblood and a competitive imperative for embedded-tech makers. 

Here’s what TurnKey Lender Equipment Financing Platform has to offer.

A simple and rational way to provide capital-equipment financing 

AI-driven communications and follow-up allow equipment suppliers to introduce new programs and special offers for corporate financing backed by a variety of lending models including: 

  • Factoring 
  • Vendor financing  
  • Rent to own 
  • Lease to own  
  • Supplier financing 
  • Inventory financing 

In addition, the best open-architecture equipment-financing software supports custom credit products tailored to the needs of capital-gear makers while enhancing their customers lifetime value in the process. 

For TurnKey Lender’s Voronenko, deploying smart, versatile, and easy-to-use financing options with competitive rates is a rational way to stand out from competitors, stabilize cash flow as a bulwark against seasonality, and boost average order size. 

“The key, always, is to build customer loyalty and invite repeat business by offering smart and versatile equipment financing on a level customers have come to expect from the consumer-oriented financial technology in their daily lives,” says Voronenko. “And the best way to get started is with a demo.” 

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