Should we offer a finance option to our customers ?

Sales aid leasing for suppliers

If your business relies on product sales the importance of securing each new customer can’t be underestimated – and there’s a lot more to this than simply having the latest products and assets for sale. You also have to give your customers the sales support and opportunities which make the buying process meet their needs.

 This often means, with large and expensive items, that your customers will be looking for leasing or financing options to spread the cost of their purchase.

 Of course cash purchases are great and, in an ideal world, we would all be dealing with these straightforward transactions for every customer; but in the real world, most businesses work with at least some credit agreements – for their own purchasing, and for selling products on to customers.

 So how can you grow your business, and provide leasing options to your potential customers?

 Leasing agreements

 Some worry that offering credit or leasing options opens the business up to risk, being inexperienced in financing – but working with a financing partner means that your customers get the benefits of a secure credit agreement, and your business is protected by partnering with an established financial partner who can maintain the agreement on your behalf.

 Benefits of offering leasing options to your customers

 When a customer doesn’t have the full amount to make the purchase, offering finance can secure the sale – giving the customers the opportunity to spread the cost, with just one month’s payment needed to secure the item. This saves them from significant outlay, and means you can close the deal without financial repercussions.

 With a leasing agreement in place you receive the full sum from the lender, who are repaid by the customer. It’s the perfect system!

 Often in business we feel pressured to offer discounts to secure a sale; rather than falling back on that method, you can retain the higher margins by instead offering a leasing option – spreading the cost for the customer without cutting your own profits.

 It also opens opportunities to ‘upselling’ – helping a customer to choose the product which best suits their needs rather than a budget; spreading the cost through leasing means that for a very small additional monthly sum, spreading cost through the length of the lease, a customer can purchase the item at a higher spec than their budget might have allowed with a cash purchase.

 This also opens up opportunities for additional products, allowing your customer to access more equipment and tools in an affordable way, boosting your sales and profits, and protecting both sides from financial risk.

 It’s a win-win situation

 Your customers are happy – because their financial outlay is spread across months, or even years, rather than spending a large lump sum. This means that they can access tools and equipment for their own growth, and not have to wait to save the sum needed for cash purchases.

It means that you can secure more, and bigger, sales than if you only accept cash payments in full – and it protects your business from the risks of offering your own payment plans or credit terms, and protects your own cashflow.

 We work with a huge portfolio of financiers and lenders, and have established relationships with a range of leasing partners who have a wealth of experience in every industry you can imagine. Call our team today to find out more about the available opportunities, and start to open your business to a whole new market, to a wider customer base, and to huge growth potential without financial risk.

It Geoffrey A. Moore's "Crossing the chasm", he wrote "When people think about positioning, they think about how to make the product easier to sell, when they should be thinking about how to make it easier to buy"

Offering a finance option to your clients does both, making it for both you and your clients.