The traditional bank lending outlook post-coronavirus remains unclear. Banks are encouraged by the government to favourably consider customer forbearance requests and this is both expensive and disturbing for the banks. In such circumstances, banks tend to limit their future lending, particularly to small businesses that are perceived as higher risk.
It is likely that to reduce this risk, banks might seek extra security over the assets of the borrower and that might not sit well with the directors.
It follows that if you could provide access to alternative funding for these businesses that does not affect their overdraft facilities or the relationship with their bank, that could be seen as an enormous benefit. Vendor finance is that alternative.
Eliminate uncertainty, improve cash flow
By offering a lease agreement that fixes the interest payable at today’s interest rates for the life of the agreement, you can get leading-edge technology into your customer’s business today and they can pay for it as they use it and gain the benefit immediately.
Meanwhile, at a time when protecting cash flow is a priority, your customer can avoid major upfront costs that come with outright purchases, while still getting the assets that will be vital in moving their business forward. You can help them beat their competitors to the recovery and improve their efficiency and profitability in the process.
Maximise sales, retain customers
All of this is good for your customer but even better for you. Using a lease rental price reduces the likelihood of cost objections. Offering a lease is likely to reduce the discount you are forced to consider on full cash sales. You can move the customer up your product line to get more valuable equipment solutions, so likely to increase your order values. Your debtor days reduce because Shire pay you the same day you invoice for the delivered goods. We keep you advised on customers reaching the end of their lease so you can maximise your initial cost of sale and keep your valuable customers in your sales cycle over and over.
Shire Leasing provides a portfolio of market-leading, innovative products to ensure you can offer the best solutions. Our Online proposal management system enables your sales team to quote, propose and complete the sale with e-signatory documents in minutes and manage deals on the go. Our automated credit decisions can be back with them in as little as six seconds from input.
A single point of contact at Shire for all elements of the deal will ensure it is as frictionless as possible.
Partner with Shire Leasing today
By offering your customers a leasing option you are greasing the wheels of the deal and creating a longer-term engagement with your customer.
With our own book portfolio, in-house underwriting and panel of external funders, we have the flexibility to approve more of your deals for more of your customers.
Shire Leasing offers one complete managed solution. To find out more, contact us today.