Why Most Financing Partnerships Fail in Equipment Sales

Why Most Financing Partnerships Fail in Equipment Sales

Many equipment sales companies partner with traditional finance providers to help customers afford purchases. On the surface, this makes sense — offer financing, sell more equipment. But in reality, most of these partnerships fall short. Here’s why, backed by available data, and how SLS is changing the game.

The Problems with Traditional Financing Partnerships

1. Sending Customers Off-Site
When customers are directed off-site to complete a financing application, the buying journey is disrupted. Research shows that ~57% of B2B buyers abandon purchases when checkout or financing processes take too long or are too complicated (ResolvePay). In equipment sales, this doesn’t just risk losing the financing deal — it risks losing the equipment sale too.

2. No Real-Time Decisioning
Traditional partners usually don’t provide instant credit decisions. Sales teams are left waiting, customers grow frustrated, and everyone is stuck playing “telephone” to find out what’s happening. A benchmark study found only half of lenders provide loan decisions with rates within minutes (Open Lending).

3. Not Integrated into Checkout
Financing is often treated as a detour, not a payment option. Instead of being a seamless “pay with payments” experience, customers are sidetracked into “How much do I qualify for? What else could I buy? Who else could I buy from?” That’s a dangerous road for sales organizations.

4. Reliance on Outdated Lending Models
Traditional underwriting depends on FICO scores, stipulations, and repeated requests for more documentation. This “return to the well” approach delays approvals and turns financing into a marathon, not a sprint. For many buyers, patience runs out before funding arrives.

5. Slow, Opaque Funding
Because of these hurdles, time to funding drags out. Customers and sales teams often don’t know what stage they’re in — approved, pending docs, declined? This lack of transparency kills deals and morale.

The Consequences

– High Drop-Off: Overall funnel conversion rates are only ~2.35%, with 10–15% of buyers dropping off even at the final decision stage (Amra & Elma).
– Declining Volume: Equipment finance volume declined 15.1% quarter-over-quarter and 2.2% year-over-year in Q1 2024, even while approvals stayed around 76% (Colonnade/ELFA). Buyers are clearly hitting friction.

Enter SLS: A Better Way

SLS eliminates these common pitfalls with modern technology and integration:

– Instant Terms: Buyers can often see terms immediately — no waiting for days.
– One-Sitting Process: Upload documents and sign contracts all in one flow, 24/7.
– Embedded Checkout: Financing isn’t a detour — it’s a payment option. “Pay with payments” keeps the customer focused on their purchase.
– Modern Underwriting: Alternative data and automated decisioning cut down delays and stipulations.
– Transparency for Sales: Sales teams see real-time status, no more guessing games.

Conclusion

Most financing partnerships fail because they slow buyers down, confuse sales teams, and divert customers off course. SLS turns financing into a seamless, instant, and integrated part of the checkout experience. Instead of sending buyers elsewhere, SLS keeps them engaged — and buying from you.