When trying to sell equipment to customers, offering leasing with affordable monthly payments can help accelerate the conversation. Here’s why supplier finance works.
Advantages of Supplier Finance
When trying to sell equipment to customers, a simple “we don’t have the budget” answer can be enough to shut the conversation down immediately. Not if you can offer to release customers from their budget restraints by offering leasing with affordable monthly payments.
If you don’t currently offer any finance options to your customers, now’s the time to start thinking about it if you have aspirations to increase sales.
What is the appetite for leasing among businesses?
When we asked 250 employees with decision-making responsibility over equipment purchasing within their organisation if they’ve ever opted to take out finance to fund new equipment, just 16% of them said they had.
Commenting on the findings, Mark Picken, Shire Leasing’s Chief Executive Officer, suggested that it’s not a lack of appetite for leasing that’s moderating the figure, but a lack of awareness.
“SMEs often overlook the alternative finance options that are available,” he said. “Through leasing, businesses can affordably pay for equipment as they use it, and in some cases, the single direct debit payment can also include the maintenance and service offered by the supplier.”
How does supplier finance benefit your customers?
There are several benefits for your customers in offering them flexible finance options with which they can acquire new equipment.
- Upgrade equipment. Ultimately, what’s preventing businesses from upgrading their equipment is a lack of funds. But, by leasing, they can have the best of both worlds: retain capital while gaining access to the latest equipment.
- No major upfront costs. Often, the customer won’t have to put down a large deposit – the agreement can begin with just the initial payment.
- Fixed payments. Finance lease payments are not affected by interest rates, allowing the customer to budget for regular direct debit payments.
- Protect existing credit lines. Leasing allows customers to keep credit lines such as bank loans and overdrafts for more appropriate times.
- Tax benefits. An additional benefit for customers is that finance lease rentals can be 100% tax deductible against profits.
How does supplier finance benefit your business?:
We’ve already touched on the benefits your business could reap by offering finance options to your customers – here’s a bit more detail…
- Same-day payout. Although your customers will be paying for the equipment in manageable monthly instalments, you’ll get full payment for it upon completion of relevant documentation.
- Retain customer relationships. Your relationship with your customers becomes more long term, with the opportunity to upgrade equipment once the agreement ends.
- Ability to upsell. Suddenly, that top-of-the-range equipment your customer thought was out of reach becomes affordable.
· Simple documentation. Choose the right finance provider who will simplify the often laborious process of offering finance and your sales staff will not have any trouble keeping on top of the relevant documentation.
Why choose Shire Leasing?
Shire Leasing has a proven record in providing credit decisions in a matter of hours. Become a Shire Leasing supplier today and you’ll benefit from:
- Quick decisions
Approved suppliers can get a decision within six seconds
Quicker processes as your customers can sign agreements online
- Online Management
Manage your deals 24/7 through our online portal, Shire Online
- Dedicated Account Management Team
Your Account Manager can also provide finance-sales training, to equip your team with the knowledge to lead with lease effectively
To find out more about becoming an Approved Shire Supplier, get in touch today.