Pride Rolls Out Galaxy Financing Subsidiary
- By Laurie Watanabe
- Feb 22, 2011
In response to a number of funding challenges facing providers - particularly the Jan. 1 elimination of the first-month purchase option for standard power chairs - Pride Mobility Products has announced the formation of Galaxy Mobility Financial Services, a wholly owned subsidiary.
In an interview with Mobility Management, Ann Sadusky, Pride's executive VP of HR and administration, said Galaxy was created to benefit all Pride providers, regardless of their size.
"We understand that with the elimination of the first-month purchase option, anybody that does products in that category is going to be having some cash-flow challenges," Sadusky said. "So no matter how small or how big the provider, we can assist them."
Galaxy offers fleet, inventory finance and customized programs to provide what Pride calls "a comprehensive and flexible financing solution to solve the cashflow challenge related to the elimination of the first month's purchase option, allowing extended payments beyond Pride trade terms."
As an example, Sadusky said, "If a provider places an order with Pride, and at the time the invoice is due in the credit department, if the provider's not able to pay for that invoice, it can be financed through the Galaxy program."
Galaxy programs were created to be highly flexible, Sadusky added, saying the overall goal was to help offer solutions to providers, "whatever their cashflow needs are."
She added, "Galaxy will provide financing to all Pride providers based on credit approval. If a provider is approved for credit by Pride, it is likely they will also qualify for credit with Galaxy."
"One of the great things about Galaxy is it does expand the provider's credit line," Sadusky explained. "So essentially, the credit line is freed up on the Pride side, Galaxy provides the new financing to meet their cashflow needs, and they're able to order again with Pride. Depending on what the provider tells us the need is, we can tailor any program to that need."
Kirsten DeLay, Pride's executive VP of sales management and operational planning, emphasized that Galaxy flexibility allows it to work effectively with Pride providers of all sizes.
"There are no minimum purchases, there's no minimum volume, and it's geared toward all our providers," she said.
DeLay also said the Galaxy subsidiary - led by GM Michael O'Boyle - has industry knowledge and background that mainstream lenders wouldn't have.
"The reason we set up this division is so that we, as well as our providers, aren't trying to deal with traditional funding sources that wouldn't nearly understand what's going to be needed in the next year or so to get through the new reimbursement changes," DeLay explained.
Galaxy Mobility Financial Services can finance all Pride products, including those from the manufacturer's Quantum Rehab division.
Sadusky said Galaxy staff will be on hand in the Pride booth (#3019) at Medtrade Spring. Providers wanting more information can also visit galaxyfinancing.com, or call (888) 525-2021.
"We do have a lot of experience with financing, and we knew what needed to be done," Sadusky said. "We certainly saw the need within this industry to get more avenues with which (providers) can receive financing - especially with the elimination of the first-month purchase option."
Laurie Watanabe is the editor of Mobility Management. She can be reached at email@example.com.