Vendor Equipment Financing
“Vendor Equipment Financing Is An Extension Of Your Sales Process”
While on the surface that would appear to be very obvious, it doesn’t mean its easy to accomplish.
Once you have gotten a customer to make a buying decision, agreed upon the price and terms of sale, the sales process is basically 90% complete, right? If the customer has cash available to complete the purchase, the process is completed right away and you earn your margin on the sale.
But what if the customer does not have sufficient cash to complete the equipment purchase, or what if they don’t want to use their available cash up to fund the acquisition? This case, which can be the most likely case in many industries, the customer is going to have to have financing in place to complete the sale.
So the next question is … are you comfortable assuming your customer can figure out their own financing, or do you want to provide some assistance? If the customer is left to figure out their financing on their own, it could all work out very well where funds are provided on a timely basis. But when there is any delay or difficulty in the financing process, your sale can be put at risk in the following two ways.
First, if the customer cannot figure out financing by themselves, then there will not be funds to complete the transaction and therefore no sale.
Second, if the financing process is taking some time to complete, it opens up the possibility that a competitor may get involved with the customer and grab the sale. The competitor can grab the sale by providing a better deal and/or providing a financing option for the customer that the customer could not find on their own.
So even though your deal is all set to close, there is no closing and profit if it doesn’t close.
That’s why its so important to provide your customer will a pre-qualified and highly relevant financing solution at the point of closing. It will also be important that any financing option you introduce you client or customer to works seamlessly with your sales process so it does not put the sale at risk either.
To clarify further, its not enough to just have a vendor equipment financing program in place. You’ve got to have one that’s going to help you close a high percentage of sales and that adds value to the closing and funding process versus placing it at greater risk not completing.
The best way to know for sure what type of vendor equipment financing program will work well for your business is to get a customer equipment financing assessment from one of our equipment financing specialists. The process can be completed over the phone and at the end of the financing assessment, we will provide you with specific vendor equipment financing programs to consider as well as an evaluation of any programs you currently have in place.
Once again, there is no cost to getting this assessment completed and you will be one step closer to making sure you are going everything possible to maximize the closing of all sales you’ve worked so hard to get lined up. Having a higher sales close ratio can be the difference between breakeven and profitability, or marginal profitability to exceptional returns.
Give us a call today and we’ll get all your questions answered right away.