Why should I consider offering finance?
Most of your customers will lease or finance equipment already. Over 90% of the Times Top 100 companies, professional firms and local authorities use leasing to acquire assets, as do many small and medium sized companies. Most offices are rented or purchased using a mortgage or some form of loan facility and nearly all cars are acquired on contract hire or lease purchase.
Most vendors now offer financing options when quoting their customers as they have found that a financing option has many benefits for both parties. Your customers will expect you to do the same.
Easier to Sell
A regular, fixed price rental option often overcomes objections to large capital expenditure. Quoting £300 per month can be easier to sell than asking for a £10,000 cheque.
Increased Revenue
You will be able to utilise the lower cost to the customer of leasing to increase order values by selling additional products and services.
Profit Margins
Protect and increase your return as the focus of your sale will be on the overall offering rather than unit costs. Your profit will rise as the overall sale value increases.
Client Retention
Protect your customer base knowing that when your customer's contract ends you can be the first to renew it. With certain contracts you can also incorporate an upgrade option. This will give you an opportunity to enhance your sales and increase customer retention.
Cash Flow and Risk Management
You will receive prompt payment of your invoices and neutralise the credit risk from bad debt.
"I purchase appreciating assets and rent depreciating assets"
John Paul Getty
Most of your customers will lease or finance equipment already. Over 90% of the Times Top 100 companies, professional firms and local authorities use leasing to acquire assets, as do many small and medium sized companies. Most offices are rented or purchased using a mortgage or some form of loan facility and nearly all cars are acquired on contract hire or lease purchase.
Most vendors now offer financing options when quoting their customers as they have found that a financing option has many benefits for both parties. Your customers will expect you to do the same.
Easier to Sell
A regular, fixed price rental option often overcomes objections to large capital expenditure. Quoting £300 per month can be easier to sell than asking for a £10,000 cheque.
Increased Revenue
You will be able to utilise the lower cost to the customer of leasing to increase order values by selling additional products and services.
Profit Margins
Protect and increase your return as the focus of your sale will be on the overall offering rather than unit costs. Your profit will rise as the overall sale value increases.
Client Retention
Protect your customer base knowing that when your customer's contract ends you can be the first to renew it. With certain contracts you can also incorporate an upgrade option. This will give you an opportunity to enhance your sales and increase customer retention.
Cash Flow and Risk Management
You will receive prompt payment of your invoices and neutralise the credit risk from bad debt.
"I purchase appreciating assets and rent depreciating assets"
John Paul Getty
