Technology-Based Equipment Lenders vs. Relationship-Driven Lenders: What Vendors Should Know

Vendors offering financing to customers often face a choice they don’t always realize they’re making.

Do you send deals to a large, technology-driven equipment lender built for speed and automation?

Or do you work with a smaller, relationship-based lender that takes a more hands-on approach?

I think the best option is both.

But choosing the wrong one for a specific transaction can slow approvals, weaken terms, or cause deals to fall apart entirely.

Understanding the difference helps vendors match the right financing approach to the right customer and close more deals as a result.

What Technology-Based Equipment Lenders Do Well

Technology-driven lenders are built for efficiency. Their platforms are designed to move clean deals through quickly with minimal human involvement.

They tend to work best when:

• Credit is strong and straightforward

• The equipment is common and easy to value

• The deal size fits neatly into preset approval tiers

• Speed is the primary concern

  
  

For app-only transactions, repeat buyers, or standardized equipment packages, these lenders can deliver approvals in hours or days. For vendors moving high volumes of similar deals, that speed can be a real advantage.

Where they struggle is flexibility.

Automated systems don’t explain nuance well. If a customer has uneven cash flow, seasonal revenue, recent credit changes, or needs documentation interpreted rather than checked off, the system often says no without context.

Where Relationship-Based Lenders Add Value

Smaller, relationship-driven lenders approach underwriting differently. Instead of relying entirely on automation, they evaluate the full story behind a request.

They tend to shine when:

• The customer has mixed or evolving credit

• The equipment is specialized, used, or older

• The deal structure needs customization

• Timing, installation, or delivery requires flexibility

  
  

These lenders are often willing to look at comparable credit, explain PayNet reporting, request documentation strategically, and structure terms that align with how the customer actually operates.

For vendors, this approach often means fewer unexplained declines and better outcomes on deals that fall outside the “perfect borrower” box.

Why Vendors Lose Deals When the Match Is Wrong

Problems arise when the financing approach doesn’t match the transaction.

Sending a nuanced deal to a purely automated lender can lead to:

• Delays caused by rigid documentation requirements

• Declines without explanation

• Customers losing confidence mid-process

  
  

On the other hand, routing every deal through a manual process can slow down simple transactions that could have closed quickly.

The issue isn’t the lender. It’s the fit.

The Role of a Financing Partner

This is where a true financing partner earns their keep.

Instead of pushing every deal into the same system, a good partner:

• Evaluates the customer’s credit and cash flow upfront

• Identifies which lenders are the best fit for the asset

• Explains documentation requests before they become friction

• Helps vendors set expectations early

  
  

This approach protects the vendor relationship, keeps the customer engaged, and improves close rates across a wider range of deal types.

Choosing the Right Tool for the Job

Technology-based lenders are powerful tools when used correctly. Relationship-based lenders are equally valuable when complexity is involved.

Vendors who succeed with financing don’t pick one or the other. They work with partners who know when to use each.

That flexibility allows vendors to move fast on clean deals and still close the more complicated ones that competitors walk away from.

The Bottom Line

Financing should support your sales process, not complicate it.

Understanding the difference between technology-driven lenders and relationship-based lenders helps vendors:

• Reduce stalled approvals

• Close more deals across a wider customer base

• Maintain trust with buyers

• Avoid unnecessary friction

The best financing strategy isn’t about choosing sides. It’s about choosing the right approach for each customer and each transaction.

   About the Author

   Jared Holmes is the founder of Brilliance Funding Partners, where he helps business owners navigate the commercial lending landscape with confidence. With 10 years of hands-on experience in SBA lending, equipment financing, and working capital solutions, Jared focuses on asking the right questions and delivering financing strategies that make sense for each business. Connect with Jared for a personalized conversation about your options.