Vendor Finance Program
Win Competitive Bids with State, Local, and Tribal Governments
Vendor finance helps equipment manufacturers and dealers boost sales by offering customer financing options on products and services. In a vendor finance arrangement, the manufacturer or dealer partners with a finance company that manages the program and provides customer funding.
Baystone Government Finance has developed a vendor financing program that equips manufacturers and dealers to succeed in the municipal market – expanding business with state, local and tribal government organizations, schools, and nonprofits. We deliver tax-exempt financing for qualified customers and other attractive funding options for acquiring essential equipment and real property. We manage each transaction from start to finish, work directly with government customers if desired, and ensure that financing complies with the legal requirements of their jurisdictions.
How Vendor Finance Helps You Win More Government Business
Capture more business by offering low-interest, tax-exempt financing on your municipal equipment bids. By partnering with Baystone, you can provide tax-exempt municipal leases to qualified organizations ─ at rates averaging 30% lower than traditional commercial rates.
Vendor Program Benefits
Baystone’s vendor program allows you to concentrate on the sale of your equipment while we handle the financing process.
- Each program is customized to meet your business needs
- Our specialized finance experts can work with your customer directly to ensure understanding of financing and prompt execution of the documents
- Nationwide funding for all 50 states
- Tax-exempt municipal leases, tribal entity financing, and other taxable solutions for nonprofit customers
- Flexible financing solutions including residuals, balloons, and deferred payments
- Dealer reserve fees
- Private-label documents are available
- Fast credit decisions using a simplified process
- Escrow funding for delayed deliveries
- Quick vendor payments
- Financing as low as $5,000 and up to $10,000,000 for new or used equipment
Offer Tax-Exempt Municipal Leasing and Other Financing
As experts in public financing, we can assist in finding the right financing structure for your customer’s needs. We underwrite the credit, prepare the documents, and service each transaction until maturity.
We work with municipalities across the nation and provide a transparent transaction process with no closing costs or hidden fees.
It’s simple!
- We will work with you or your customer directly to quote the transaction
- Our credit department will review the financial package and make a decision within 24 to 48 hours
- Our team will draft the appropriate contract for signatures and work with you or your customer to complete it
- Our team will do a final review of the documents and transaction to ensure financing is accurate, equipment is delivered, and all parties are satisfied
- Once equipment has been delivered and the contract has been executed and returned, we will wire or overnight full payment for the equipment the next business day
Equipment manufacturers and dealers often prefer that Baystone communicates directly with their customers, given our government financing expertise and nationwide experience. However, some vendors opt to manage customer contacts throughout the process. We can accommodate either preference and will tailor your vendor finance program to your needs.
Vendor Financing Solutions for Diverse Needs
All Equipment and Capital Projects Considered
Equipment – Examples of New and Used Assets We Finance
- Fire trucks
- Police vehicles
- School buses
- Ambulances
- Public works equipment
- Dump trucks
- Snow plows
- Salt or spray trucks
- Wheel loaders
- Excavators
- Skid steers
- Loaders
- Backhoes
- Vactor trucks
- Street sweepers
- Sewer cameras
- Emergency response vehicles and equipment
- Self-contained breathing apparatus (SCBA)
- Turnout gear
- Rescue equipment
- Computers and tablets
- Body cameras and security equipment
- Copiers
- Software
- Telecommunications
- IT Infrastructure
- Energy savings projects
- HVAC, LED Lighting, Roofs, Boilers, etc.
- Modular classrooms and buildings
- 911 systems
- Artificial Turf and sports complexes
- Water treatment equipment
- Metering equipment
- Capital improvement projects
- Exercise and Fitness Equipment
Real Property
- Administration Buildings
- Gymnasiums
- Shop Buildings
- Fire Stations
Bond Financing
- General Obligation Bonds
- Revenue Bonds
Case Studies – How Vendors Benefit from Government Financing
For many vendors, Baystone is their No. 1 resource for tax-exempt municipal leases for state and local governments, schools, tribal entities, and qualified nonprofits. As one equipment dealer noted, “The ability to offer one-year municipal leases is really attractive to government organizations that can only budget one year at a time, and (Baystone) can structure a lease like that and manage the details with patience, flexibility, and their understanding of government financing.”
Manufacturers and dealers also praise Baystone’s responsiveness. “From the first step to the last step, KS StateBank’s Baystone Government Finance division gives you a flawless experience,” remarked one vendor, discussing our fast turnaround when working with their sales team and customers.
The following are a few examples of Baystone programs benefiting original equipment manufacturers (OEMs) and dealers.
Tax-Exempt Vendor Financing for OEM Products
Baystone provides tax-exempt financing solutions across the US for several large OEMs in the heavy equipment, yellow iron equipment, and auto industries. We deliver tax-exempt financing expertise and funding capabilities under private-label programs that allow the OEMs and their captive financing divisions to maintain brand visibility, enhance the customer experience, and strengthen their market position in the government sector.
Creative Vendor Financing for Public Works Trucks
Manufacturers and dealers that specialize in dump and refuse trucks value Baystone’s solutions for financing public works equipment. We can structure short-term capital leases with balloon payments that lower monthly payments for municipal customers while maintaining their positive equity in the equipment. A municipality also can opt to cycle in new trucks every two or three years, maintaining an active service plan and warranty throughout the process. This eliminates internal maintenance costs for the customer – and creates a pathway for future vendor sales.
Cost-Effective Vendor Financing for Police Vehicles
Baystone financing solutions are helping police departments and the equipment manufacturers and dealers that serve them. Examples of the funding solutions we offer include tax-exempt financing for upfitting and equipping police vehicles with technology, lighting, logos, and other enhancements needed to protect citizens. This makes essential gear more affordable for first responders and helps vendors close sales. We can also use vendor payable accounts (VPAs) to lock in the rate for customers while their vehicles are being finished.
Visit our testimonials section for more comments from our customers.
How Vendor Customers Qualify for Tax-Exempt Municipal Leasing
Tax-exempt municipal leases are available to qualified organizations in all 50 states. In most, they are set up as lease-purchase agreements. The customer uses appropriated annual funds to make installment payments while using the equipment, then owns the equipment at the end of the lease term. Many municipal leases also incorporate a non-appropriation clause, which gives customers the right to terminate the agreement, without further obligation or penalties, if funds are not available in subsequent budget years.
To qualify for tax-exempt financing, an organization must be a state or political subdivision such as a city, town, or county. Other organizations are eligible because of their relationships with states and political subdivisions. These entities include public schools, colleges, universities, special-purpose districts for fire, water, parks, utilities, and hospitals, along with agencies, authorities, boards and commissions, and volunteer fire companies that meet IRS criteria.
Visit our tax-exempt municipal leasing section for more information on this important financing option.
Why Choose Baystone’s Vendor Finance Program?
Baystone Government Finance is the government and nonprofit lending division of KS StateBank, a privately-owned, full-service community bank. We have funded municipal obligations across the United States since 1987 and have navigated the complexities of public finance for many equipment manufacturers and dealers.
Our finance professionals and legal team have extensive experience in municipal finance, a deep understanding of vendor equipment financing in the public sector, and a vast library of documents meeting legal requirements for jurisdictions throughout the nation.
Working with your company, we will help you grow your business in rewarding ways – providing communities with the essential equipment they need to serve citizens.