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
from Columbia University in Ciudad de México, CDMX, México
Thanks Luke... I indeed have worked with many fintechs that can help fund the purchases, and I partner with a solution that helps SMBs build its own credit scoring, credit management platforms. DM me Daysi if you would like to know more about it.
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