Financing Programs | 7 min
Vendor Programs
Under our manufacturer/vendor programs, Sentry partners with equipment manufacturers and vendors to strategically provide leasing and financing solutions to their customers, which enables their end-user customers to more easily acquire our manufacturer/vendor partner’s equipment and services.
Sentry provides competitive financing tailored to meet the end user customer’s specific budget, accounting, and business needs, and Sentry pays our manufacturer/vendor partner under their agreed-upon customer payment terms.
In many cases, Sentry can provide a complete financing solution for the end-user customer by including both equipment and services (e.g., design, delivery, and installation) in a single financing, and by providing progress payment financing during installation periods.
Why Partner with Us?
By partnering with Sentry, you will:
- Close sales faster
- Increase the size of the sale
- Overcome sticker shock and CapEx objections
- Protect your margins
- Build customer loyalty and repeat business
And, you will be providing the following benefits to your customers:
- Total Solution – technical and financial
- 100% financing – bundle design, installation and equipment
- Convenient – one-stop shopping from trusted sources
- Supplemental capital – preserve cash and bank facilities
- Overcome sticker shock – payments over time
- Control over the system – ability to own or upgrade
Our financing products are extensive and we will work with you to deliver the best lease or finance solutions for you and your customers. The bottom line is that, by teaming up with Sentry, you will beat your competition and sell more equipment and services.
Are We The Right Fit?
Sentry is actively seeking additional equipment manufacturers, distributors, dealers, resellers, and integrators who understand the power of strategic customer financing programs.
Qualified manufacturer/vendor candidates will typically meet the following criteria:
Gross revenues of at least $100 million
- Sales are primarily (but not necessarily exclusively) within the U.S. or to U.S.-based companies abroad
- Most sales are made primarily directly to end users
Equipment is sold to/used by companies within the following industries:
- Computer/HighTechnology, e.g., AI
- Manufacturing
- CleanEnergy/Energy Efficiency
- Most other industries
- Sales price per transaction (not per item) is at least $250,000.
Equipment is suitable for lease terms of 12 to 84 months.
End customers of manufacturer/vendor are creditworthy (which may require credit enhancements and/or transaction structuring).
What Does Sentry Offer?
Each Sentry vendor program is tailored to meet the specific requirements of our manufacturer/vendor client and its customers, and can be provided on a private label basis. The essence of Sentry’s vendor programs is for the manufacturer/vendor to focus on what it knows best—its equipment and other products—and for Sentry to focus on what we know best—equipment leasing and finance.
Our primary goal is to help you sell more equipment—more quickly and more profitably.
Our Role:
is to manage the entire leasing and financing process and to assist your sales team in making sales, all in a seamless manner.
Your Role:
is to manage the overall relationship and sales process with your customers and, with Sentry’s help, to integrate Sentry’s financing solutions into the sales process with your customers.
Where does sentry do business, and what are sentry’s finance products?
For almost four decades, Sentry has provided equipment financing both domestically and internationally. With Sentry’s internal funding capacity and its access to the capital markets, Sentry is able to provide virtually unlimited financing almost anywhere in the world (if the financing customer is creditworthy).
Sentry’s list of finance products is extensive, including:
- Operating Leases
- Capital Leases
- Lease Lines of Credit
- Structured Leases
- Sale-leasebacks
- Full Service Leases
- Software and Services Financing
- Rentals
- First Amendment Leases
- Fully amortizing and partially amortizing loans
Can I Brand Sentry’s offerings as my own?
Sentry will provide financial products and services under your brand (a private label program) or under Sentry’s brand, depending on your objectives and preferences. Under either approach, Sentry respects and protects the relationship that you have with your customers. You remain the primary and direct contact with your customers and Sentry is your strategic partner.
In a private label program:
- The financing program will be operated under a name approved by you that is similar to your name, e.g., ABC Capital.
- All customer contact and materials are under the private label name, and include:
- Marketing and Collateral Materials,
- Communications (written, verbal, electronic), and
- Documents.
What would our relationship look like?
As a full service commercial finance company, Sentry has developed the complete infrastructure to take financing transactions from inception through completion.
Sentry’s Primary Roles:
- Marketing and sales support for your equipment;
- Training and education of your sales team on equipment leasing and finance;
- Technical structuring, pricing, and negotiations of lease/finance proposals;
- Credit underwriting;
- Preparation of proposals and lease documentation;
- Closing and payment to you;
- Servicing (including invoicing, collections, and tax collection, filing and remittance);
- Accounting and reporting; and
- Equipment management and remarketing (jointly with you).
Your Primary Roles:
- Marketing and sales for your products and services;
- Introducing and promoting financing to your customers;
- Managing your customer relationships; and
- Equipment management and remarketing (jointly with Sentry).
Are My customers creditworthy?
Your customers must meet Sentry’s applicable credit underwriting requirements:
Investment Grade
Companies that are Investment Grade have a relatively low risk profile with respect to compliance with their financial and other obligations under their financing transactions. For companies that have publicly-rated debt, the rating is at least BBB- (Standard and Poor’s) or Baa3 (Moody’s).
Investment grade companies that are not publicly rated will have financial ratios in line with the financial ratios of investment grade companies in their industry that are rated (but will typically be somewhat smaller in size than their rated counterparts), and
- Will have audited financial statements available for at least the past three years, which will demonstrate a strong capacity to meet their financial obligations; and
- Will have a demonstrated history of timely meeting their financial obligations.
Near-Investment Grade
Companies that are Near-Investment Grade have a higher risk profile than Investment Grade companies (they are more affected by the vicissitudes of the economy). For companies that have publicly rated debt, the rating is normally between B and BB+ (Standard and Poor’s) or B2 and Ba1 (Moody’s).
Near-Investment Grade companies that are not publicly rated will have financial ratios in line with the financial ratios of Near-Investment Grade companies in their industry that are rated (but will typically be somewhat smaller in size than their rated counterparts), and
- Will have audited financial statements available for at least the past three years, which will demonstrate a reasonable capacity to meet their financial obligations; and
- Will have a demonstrated history of generally meeting their financial obligations.
Creditworthy Middle Market Companies
Middle Market companies that are creditworthy are generally not rated and are ordinarily significantly smaller than rated companies. Nevertheless, they will have:
- Financial ratios that are equivalent to companies that are B or higher (using an S&P equivalent rating system);
- At least three years of audited financial statements with a history of steady and improving earnings, positive cash flows from operations, and a pattern of growth;
- Stable or increasing operating income margins;
- A demonstrated history of timely meeting their financial obligations;
- Past and current compliance with any bank covenants to which they are subject; and
- A management team that is competent, knowledgeable and has a demonstrably successful track record.
Structured or Credit-Enhanced Transactions
If the foregoing credit attributes do not exist with respect to a particular customer, Sentry can suggest structures or credit enhancements that will achieve a creditworthy status.
I’m Interested. How Do We Get Started?
To team up with Sentry and expand your sales by providing financing to your customers, simply review whether we are a fit. If your company meets the guidelines, simply contact us, and we will begin our journey together.