This move is the result of upbeat market analyses from industry groups like the Materials Handling Equipment Distributors Association, which forecasts recovering sales for this year. The fact that there are fewer companies financing material handling equipment these days was also factored in.
“You’ve either had to deal with DLL or Wells Fargo and that’s it, all the other players that were in the market are no longer there,” Heston told MHM. “And banks don’t understand the material handling market. There are also limitations for the dealers. They’re frustrated that there aren’t resources out there to offer the customer financing alternatives. Before, you could get equipment financed for up to $500,000. Now you’re looking at $200,000 and their financials are required.”
Heston says customers are eager to get financing because they’ve been putting off their purchase for so long.
“A very large company I’m working with has kept their trucks for eight years,” he adds. “They’re looking at 140 trucks. They don’t want to buy new but they have no choice. As time goes on, that kind of thing will increase because of the cost of repairing vs. buying new.”
“We are excited to have Bill leading the charge and beating the drum for lease financing for this type of equipment,” says Richard Stebbins, co-founder, president and chief executive officer of FFCSI. “He is well networked within the material handling industry across both the dealer and manufacturer channel.”