Adding in-house financing option for customers?

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July 25, 2025

by a searcher from Massachusetts Institute of Technology in Miami, FL, USA

Has anyone ever acquired an equipment distributor (or something similar) and built out an in-house financing option for customers? Ex. customers are buying equipment for $25K, and you added on a financing plan so they can pay you a downpayment and then monthly installments with interest
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Reply by a searcher
from Harvard University in New York, NY, USA
I would be wary of doing too much too fast. The financing business is very different from your core equipment rental/sales/service business. Requires completely different staffing, tech, and financial expertise. Your question, then, is effectively do I want to own 2 businesses at the same time, that are basically 100% correlated with each other. I think if you must offer financing, I would look at (at least initially) partnering with another fintech who offers the financing. Just something to think about.
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Reply by a searcher
in Seattle, WA, USA
Hi Daysi - I ran a window & door distributor and we did offered fairly long duration Net payment terms for some B2B2C customers to enable them to sync their cashflow with paying us. Largely was relationship based with periodic trade reference checks including their bank. Started slow with amount we would extend, and increased over time if they paid well. Totally unsecured but the default rate was extremely low as a percentage of revenue. Happy to answer questions if relevant to what you're looking at.
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