How can pallet rack dealers offer financing to their customers?
Pallet rack dealers can offer financing to their customers through a free partner program: you print an estimated monthly payment on the quote, and Five West handles the credit and the funding. You get paid in full when the deal funds, and on qualifying files your customer gets one payment for the whole job. Here’s what a racking dealer financing program covers and where install and permits fit in.
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Do pallet rack dealers offer financing?
Some do, and you can without lending a dollar of your own. In a racking dealer financing program, you quote the job, your customer applies, and the funder carries the credit. Nothing lands on your books, and you never collect a payment.
Your customer applies with a soft credit inquiry, and most hear back within 1 to 2 business hours. A clean application-only file can be approved in as little as 30 minutes, and qualifying files up to $500,000 don’t need tax returns or financial statements.
Our dealer program setup guide has the steps, and our racking and conveyor financing guide is the one to send your buyers.
Why does financing close a rack job?
Because rack gets bought when a customer is out of room, and that tends to bring other bills with it. A move, a new lease or a second shift can land in the same quarter as your quote, and a payment keeps the cash free for those.
It also gives your rep something to compare. The Fulfillment Advisor’s 2026 survey puts outside storage at an average of $19.37 a pallet a month. Take the 100-bay job below: two beam levels plus the floor, two pallets a level, 600 positions. At about $1,336 a month over 60 months, that’s about $2.23 a position before freight and install. Yes, the customer still pays for the building and labor. But if they’ve got ceiling height to spare and pallets in overflow storage, I’d show them that number.
Speed helps, too. Imported steel racks came under the federal steel tariffs in June 2026, so quotes can go stale. Most customers hear back within hours, which helps them sign before that happens.
What can go on the agreement besides the rack?
Most of the invoice. Racking, shelving, conveyor, dock equipment and warehouse automation can be financed alone or together, and on qualifying files the warehouse makes one monthly payment. Deals run from about $15,000 to $5 million and up, and our material handling equipment financing page has the full list.
- Freight, installation and engineering: on qualifying files, these can go in the same payment as the steel. As a guide, soft costs are usually around 20% of the equipment amount, depending on credit and collateral. That’s no promise.
- Permits and stamped plans: ask first, before you quote them. Some programs fund these and others don’t.
- Lift trucks and dock gear: on qualifying files, a forklift or dock leveler bought for the same building can go on the same deal.
Selling a small add-on? The minimum counts everything in the bundle, so decking, installation or a lift truck can carry a short order past $15,000. One catch: financed and leased pieces need two agreements. Rack stays put for years, so I’d quote the whole job as an equipment finance agreement (24 to 84 months) or a $1 buyout lease (24 to 60 months).
What payment should you put on a rack quote?
Put the job total, one estimated payment and the term on the first quote. Each $10,000 financed with nothing down runs about $208 a month over 60 months, or about $161 over 84. Here’s that on jobs added up from listed prices, using bays 96 inches wide, 42 deep and 12 feet tall with two beam levels:
| Job | What’s on it | Listed total | 48 months | 60 months | 84 months |
|---|---|---|---|---|---|
| 25 bays, one row, new | 1 starter, 24 add-ons, 100 wire decks | $16,195 | About $403 | About $336 | About $261 |
| 100 bays, two rows, new | 2 starters, 98 add-ons, 400 wire decks | $64,340 | About $1,601 | About $1,336 | About $1,035 |
| 250 bays, five rows, new | 5 starters, 245 add-ons, 1,000 wire decks | $160,800 | About $4,002 | About $3,338 | About $2,587 |
| 800 bays, 16 rows, new | 16 starters, 784 add-ons, 3,200 wire decks | $514,400 | About $12,801 | About $10,678 | About $8,276 |
| 100 bays, two rows, used | 102 used uprights, 400 used beams, no decking | $18,074 | About $450 | About $375 | Ask your rep |
Listed asking prices we found, checked November 5, 2026, not appraisals or offers. New rows use Uline’s starter units, add-on units and wire decks at each job’s quantity break. The used row uses Southeast Pallet Rack’s uprights (42 inches by 11 feet 4 inches, on sale) and 96-inch beams, and we didn’t confirm stock in that quantity. Totals leave out tax, freight, engineering, permits and installation. We aren’t affiliated with these sellers. Payments are estimates for established businesses only (two or more years in business) on an equipment finance agreement with nothing down, and real payments depend on credit, the equipment and the term. Jobs over $500,000 need tax returns and financial statements.
Swap in your own prices and add your install quote. As an example, another $8,000 of installation adds about $166 a month over 60 months. A rep’s line: “This job is $64,340, or about $1,336 a month over 60 months, estimated and subject to credit approval.”
The Quote Builder estimates a payment without pulling credit. Skip the payment on quotes for businesses under two years old, since their pricing depends on the full file. Our startup financing guide covers those deals.
How do permits and the building affect a rack deal?
Mostly, they affect timing. Pallet rack often needs a building permit, and the trigger depends on the city. Salt Lake City requires one for racking over 5 feet 9 inches, and it wants engineer-stamped plans on typical jobs with rack 8 feet or higher and storage over 12 feet. Poway, California, requires one above 8 feet, plus an annual fire permit for storage over 500 square feet at 12 feet or higher.
The Rack Manufacturers Institute says to confirm the code with local authorities, and I’d do that before the customer signs. Approvals stay open a set time, and you’re paid after delivery and acceptance, so give your rep the permit date with the deal.
Does your customer lease the building? Bring up the landlord in the first meeting. Anchored rack can count as a fixture, so a funder may want the landlord’s consent, and a late waiver can hold up closing. That’s one for the customer’s attorney.
Then there’s December 31. A customer who wants a 2026 Section 179 deduction needs the rack installed and ready to use by then, because the IRS counts property as placed in service when it’s ready and available for use. Send the tax question to their CPA.
How do you get paid on a rack job?
Directly and in full. We pay 100% of the invoice when the deal funds, after your customer signs and the equipment is delivered and accepted. Funding can follow signing by as little as 24 to 48 hours.
Need money up front to release a steel order? Where the equipment requires a deposit, it can be funded once documents are signed, with the balance on delivery. Bigger builds billed in stages can use progress or pre-funding arrangements on qualifying transactions. Rack can go in over weeks, so ask your rep what counts as delivered and accepted on your job.
What does the dealer send with a rack deal?
Usually one good quote and a few details:
- Itemized quote or invoice: frames, beams, decking, freight, installation and engineering each on their own line, plus any permit costs.
- Who’s buying: the business, a contact, the equipment and the cost. We get documents and Social Security numbers from your customer directly.
- The building: owned or leased, with the landlord’s contact if it’s leased.
- On used rack: piece counts, sizes, the manufacturer if you know it, and any load data.
Can customers finance used pallet rack?
Yes, from your stock, an auction or a private seller. There is no age limit, though older equipment can be tougher to get done. Used rack typically gets a shorter term than new. With good credit, you usually don’t need a down payment, even on used equipment.
Size is the usual snag, because used steel is cheap. The 100 used bays above only reach $18,074, so a smaller order may need install, freight or decking on the deal to clear the minimum.
The Rack Manufacturers Institute recommends buying rack that clearly meets the ANSI/RMI standard, and it says rack re-certified without complete technical documentation can be expected to get down-rated. So when you buy in a used lot, ask for the load plaques and drawings.
Why should a rack dealer work with Five West?
Because it’s free, and you find out early whether a job can get done. Every submission has two funding paths behind it, so one no doesn’t have to end the deal. A borderline file gets reviewed for a restructure before any decline. If we can’t place it, we’ll say so plainly so your rep can move on. Each tier includes a dedicated finance rep, and the team averages about 10 years of experience.
Which partner tier fits a rack dealer?
Pick the one that matches your monthly applications today. All are free, and each opens with a 90-day trial.
- 3rd Party Financing: no minimum, nothing to sign. Refer customers to support@fivewestfinancial.com or a contact we assign you.
- Co-Branded: about $100,000 a month in applications, roughly one and a half 100-bay jobs, plus one funded deal a quarter. Adds your logo on a payment calculator and financing page, 100% funding upfront on orders and the Partner Portal.
- Private Label: about $500,000 a month, roughly one 800-bay job, with a partner program agreement. Adds a program under your own brand, CRM integration, and sales meeting and trade show support.
Rack work can be uneven, with a big fit-out one month and add-ons the next, so I’d start on 3rd Party and step up when volume holds steady. Our partner programs page compares all three.
The Partner Portal, on Co-Branded and up, tracks your customers’ financing from application to funding. Its quick app takes about a minute for the basics, with no documents and no SSN. Here’s the Partner Portal demo.
Frequently asked questions
Do pallet rack dealers offer financing?
Some do, usually through a funding partner so the dealer never carries the credit. At Five West, a rack dealer can start with the free 3rd Party Financing tier, which has no minimum and nothing to sign, and print an estimated monthly payment on each quote.
What does it cost a rack dealer to offer financing?
Nothing. None of the three Five West partner tiers has a setup fee or a monthly fee, and your customers pay no application fee. Co-Branded and Private Label ask for monthly application volume instead, and 3rd Party Financing has no minimum.
What is the monthly payment on a pallet rack job?
As an example for an established business with nothing down, a 100-bay job listed at $64,340 in November 2026 comes to about $1,336 a month over 60 months. Actual payments depend on credit, the equipment and the term.
Can installation go on the same agreement as the rack?
Yes, on qualifying files. Freight, installation and engineering can be included, so the warehouse has one payment for the job. Soft costs are usually around 20% of the equipment amount, depending on credit and collateral. Ask your rep about permits and stamped plans before you promise them to a customer.
When does the dealer get paid on a financed rack job?
When the deal funds. Five West pays 100% of the invoice directly to you after your customer signs and the equipment is delivered and accepted. Where a deposit is required, it can be funded once documents are signed.
Do I need a license to offer financing on the rack I sell?
Usually not. Selling your own equipment while a funder handles the deal makes you a vendor. That can change if you charge the buyer a separate fee for arranging financing, and a few states have their own rules, so check with your attorney. This isn’t legal advice.
Put a monthly payment on your next rack job.
The partner application takes about 10 minutes, and it’s not a credit application. After that, you’re paid 100% of the invoice when each deal funds.
This article is general information about offering financing on pallet rack and installed warehouse equipment, not tax, legal or accounting advice or a commitment to finance. Prices shown are listed asking prices from public pages on the date checked, not appraisals or offers. Example payments are estimates for an established business with no money down; actual terms and payments depend on credit approval, the equipment and the structure. Tax treatment depends on the contract and the business, so confirm it with a CPA, and take questions about permits, fixtures and landlord consents to your local building department or an attorney. All financing is subject to credit approval and underwriting.