Customers have always welcomed alternative financing solutions that allow them to spread the cost of their purchases.
These financing opportunities are commonly available for large purchases, such as cars, houses and furniture, and are becoming more popular for business purchases, especially during the current economic uncertainty in the UK.
The cost-of-living crisis has had a significant impact on people’s finances. The struggle to pay for high energy bills and rising costs mean that not everyone can afford to make purchases with a single upfront payment, and the same goes for businesses.
An excellent solution for B2B equipment suppliers to maximise sales opportunities is vendor financing (also known as supplier finance), which benefits both the business customer investing and the business equipment vendor.
In this article, we explore the ins and outs of vendor financing, including how it works and how your business can make use of it to help secure sales.
Why implement a vendor finance programme – what are the business benefits?
Trusting a third party to manage your customer’s finance agreements can be daunting, however, here are 4 reasons why working with a trusted vendor finance provider benefits both your business and your customers:
Keeps customers happy
Substantial equipment investments often require finance facilities to help alleviate cash flow and it is becoming a norm.
Customers may be left unimpressed if you don’t offer flexible finance options on large purchases. This could drive them to your competitors who do offer finance instead, which is why it’s important to adapt your payment options to meet their needs.
Offering equipment leasing options can make your products more accessible to businesses looking to grow, meaning that they are less likely to search for more competitively priced alternatives on the market.
Makes investment in your equipment an easier sale
All businesses want to preserve their cash flow. A large upfront investment puts this at risk, meaning many customers could resort to buying lower budget models, or shop elsewhere altogether for more competitive options.
Affordable finance payment plans are a great way to enable businesses customers to invest in your equipment, overcoming cost objections and allowing businesses to complete a larger expenditure, as they can spread the cost rather than be forced to pay it all upfront.
Improves cash flow
Vendor finance allows your customers to make purchases without having to use their cash reserves. It protects their existing lines of credit such as bank loans and overdrafts too. In uncertain time, equipment leasing allows them to invest in your equipment and keep those finance options open for more appropriate times and uses.
It also benefits the equipment vendor’s cash flow, as invoice payments are made in full on completion of all relevant documentation by the funder, removing the risk of late payments from customers.
Work with Shire Leasing – the vendor finance experts
At Shire Leasing, we understand what it takes to tailor a vendor solution that suits your business model and your customer base.
Our comprehensive, single-point service, including our online proposal management system and automated credit decisions, means you can manage your finance deals seamlessly, providing a premium finance service for your customers.
To find out more, get in touch with our experts today.