"It's a round ball and a round bat, and you got to hit it square."Pete Rose
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Do You Need a Mortgage Refinance Loan?
Is your home loan interest rate higher than the national average? Is your home in need of some much-needed repairs or are you in need of some extra money to pay off credit cards or other bills? A mortgage refinance loan may be exactly what you need to ...
Home Mortgage Loan Refinance – Benefits To Refinancing Your House Online
Here are some of the benefits to doing your home loan refinance online:Everything seems to happen faster - Online, when looking for a mortgage loan you can search around, fill out an application and a few minutes later, you can be receiving a pre-approval ...
Uk Finance From Venture Capitalists
Any new startup would require proper funding and without that it is difficult to be successful in their business venture. Choosing your UK finance partner is an important step in setting up your business. The venture capital firm should be able to ...
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The simple answer to this question is that they are offering finance to their customers as a sales, marketing & deal closing tool. It cements their relationships with their customers because leasing finance can usually be offered the same day. The customer is then more likely to return in the future because of the financing is arranged with minimum hassles and no time consuming trips to the bank manager. This type of financing arrangement is known as a “Vendor Program”
Can I Offer Finance to my Customers?
Again, the answer to this question is yes. You can benefit from establishing a relationship / partnership with an appropriate lender and start taking advantage of the sales & marketing opportunities and shortened sales cycle. Your Company, Sales Team and Customers all benefit from a Vendor Program arrangement that can be set up with minimal training and effort on your part.
So now, let us take a look at the benefits in a few more details
Sales Benefits
Finance adds value to your product, by including finance as part of your whole package you make it easier for your customer to buy therefore your sales team will find it easier to close more deals. Deal closing opportunities present themselves via price flexibility, you could discount products & claw back via finance or sell at full price but offer low cost finance. If you have customers who arrange their own finance then you already have the demand for the service, which means that some customers who require finance are probably going elsewhere! Fast finance decisions means that customers are less prone to changes of mind or finding a better deal elsewhere. If you allow others to offer finance facilities you will not be in control of the interest rate & sales could be lost / delayed. Finally, additional Leads can be gained by innovative pricing schemes.
Customer Benefits
You offer, a single point of contact for customers requiring finance for equipment. Quick finance decisions means quick delivery of equipment. Leasing allows customers to upgrade and replace equipment easily with just a simple adjustment in rentals. A near guaranteed acceptance of all finance proposals, start up companies are the more difficult proposals but can be done. Finally there are the tax benefits of leasing, payments are 100% tax deductible, cash and existing credit lines are preserved.
Company Benefits
If you offer finance it presents a barrier to competitors, if it's easy for your customer to keep trading in and trading up with you, your competitors do not get a look-in and as used equipment comes back to the vendor, the second-hand market can be controlled. Vendor maintenance can be made a condition of the leasing, increasing the vendor's profits from maintenance activity. Your company can earn commission on finance deals all for filling in a simple finance proposal form. You can choose whether to earn a commission on any deal because you set the interest rate and best of all any commission earned is 100% profit. Just think what could you do with the commission on finance sales, it could allow you to employ extra salesmen with the profits and generate even higher profits!
If you are NOT offering vendor finance & your competitors are you should ask yourself why Today?
Copyright © Mark Dalton
Eland Business Services Limited
www.ebslfinance.co.uk
About the Author
Mark Dalton is the founder of Eland Business Services Limited. For more information about business finance in the UK please visit www.ebslfinance.co.uk
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