Equipment Financing – Perfect for Vendors

Vendors that automatically offer a financing option for their products have higher overall sales. This is a fact. The automotive industry has been a leader in offering captive financing to sell more and higher priced vehicles, than they otherwise would have, to their clients. When the sales manager sits down with you after your test drive, the first thing they do is give you a total price and a monthly payment over 5 years. Why? Because when you offer a payment option you increase the likelihood that a sale will be made and increase the dollar amount of that single purchase. If someone can afford $300 a month for your product then they can usually justify spending $325 for all the bells and whistles.

You take away the “wow, not sure I can afford that or fit it into my budget” excuse which business owners sometimes cry out. But if they have done their due diligence and know your product will help them make more money or save more money they can usually fit it into their monthly operating budget. If 36 monthly payments don’t work then 48, 60 or even longer may work so their cash reserves are secure.

If you sell a product to your business clients then please consider these reasons to always offer a financing solution:

1. Offering your customers a payment option will increase the chances of closing a sale because you minimize the reasons to say no. A large total amount is scary but small monthly payments may not be.
2. Monthly payments can usually fit into any businesses operating budget if they are a viable entity.
3. Giving your clients a payment solution shows that you are organized and prepared to service the client in any way possible; it increases your value because you have multiple resources to offer.

Offering financing terms is simpler than it seems. Align yourself with a financing company which understands your business and clients. The key is that they be motivated to work with you and not send you to an 800 number when you call. The second step is to promote the fact that you offer financing terms which can be done through all your standard marketing channels but a great way to start is to include the following statement on every quote or proposal you give out –FINANCING TERMS AVAILABLE; REQUEST A CREDIT APPLICATION. Give it a try and you will be pleasantly surprised.