A sharp fall in economic activity, brought on by the coronavirus pandemic, means many UK companies’ cash flows are under pressure. To maintain employment, buildings and equipment through the COVID-19 outbreak, the Bank of England estimates that companies could face a total cash-flow deficit of £140 billion.
It’s clear that businesses need to strike a balance between financing their deficits and ensuring they don’t take on too much additional debt. While the UK government has put in place a number of fiscal measures in response to the shock, including the Coronavirus Job Retention Scheme, Coronavirus Business Interruption Loan Scheme and Bounce Back Loan Scheme, these aren’t accessible for all. With this in mind, find out how to offer finance to customers below.
Benefits of offering finance to your customers
Asset finance allows businesses to lease equipment via an affordable payment plan, rather than buying it outright. In this way, asset finance is designed to convert business customers from browsers into buyers.
With COVID forcing businesses to protect their cash reserves, asset finance offers them a way to do that while maintaining productivity or even advancing their growth plans.
Here are some of the benefits for your customers in offering them flexible finance and leasing options to buy new equipment:
- Upgrade equipment. Ultimately, what’s preventing businesses from upgrading their equipment is a lack of funds; an issue which is commonplace no matter the climate. But, by leasing, they can have the best of both worlds: retain capital while gaining access to the latest equipment.
- No major upfront costs. In most agreements, the customer won’t even have to put down a large deposit – the plan can begin with just the initial payment.
- Fixed payments. Lease repayments have fixed interest rates – should they rise above the current record low – allowing businesses to budget for regular direct debit payments.
- Protect existing credit lines. Equipment leasing allows customers to keep credit lines such as bank loans and overdrafts for potentially more testing times down the road.
- Tax benefits. An additional benefit for customers is that finance lease rentals may be 100% tax deductible against profits.
How does asset finance benefit your business?
It’s clear that asset finance has benefits for your business customers, but what advantages does your business seek to gain from partnering with an asset finance provider? In short, it can act as a platform to sell more equipment by offering flexible finance options – but there’s more to it than that…
- 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 is not so transactional – the payment plan allows you to retain a closer contact with business, providing the opportunity to sell more equipment once the agreement ends.
- Ability to up-sell. It not only converts browsers into buyers – asset finance opens up that top-of-the-range equipment your customers thought was out of financial reach.
- 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 the following when you offer finance to your customers:
- 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 and iPhone app
- Dedicated Account Management Team
Your Account Manager will also provide sales training in the financial products
With our own book portfolio, in-house underwriting and panel of funders, we have the flexibility to approve more deals for more customers. To find out more about becoming an Approved Shire Supplier, get in touch today.