Vendor Equipment Leasing Programs

Imagine this scenario, a customer likes your product, they are keen to buy and they tell your sales team will place an order within the month. It never comes. This all-too-familiar train of events is not necessarily down to a problem with your pricing strategy, your product or with your sales team’s ability to sell. It is far more likely to be the effect of your customer’s cash flow situation or reluctance on their part, to spend heard earned capital.

If your product sells for over £2000 – and this price can include a maintenance contract – then you can offer your customers leasing finance. By doing so, not only will you shorten the sales process but you will gain access to a powerful deal-closing tool. Even better, you can make the product instantly affordable to a whole raft of potential purchasers who may have the desire but not the capital to buy out right. This is known as a vendor programme and here is how it works…

Where to begin, getting your vendor programme started

If you wish to launch your own vendor programme the first thing you will need to do is find an appropriate lender. The key here is to find one who will be able to fund as many of your customers as possible at a competitive rate. Once you have established a relationship with them you could be offering your customers finance after minimal training, shortening the sales cycle and bringing in new business.

We will be happy to help you find just such a lender and introduce you for no charge.

Why you should introduce a vendor programme

Vendor leasing can bring substantial benefits to your business. Here is a good way of identifying whether or not it would work for you. Ask your customers whether they arrange their own finance to buy your product. If they do, you know you already have a demand for the service. Why let other lending companies and financiers profit when you can? Here are five more reasons why offering your customers finance is a good idea:-

1. Finance adds value to your product. By including finance as part of your whole package you make it easier for your customer to buy so your sales team will find it easier to close more deals.
2. Finance allows you can be flexible on price. This will give your sales team more deal closing opportunities, for example, you could sell your product at a discount but on a finance scheme that allows you to claw back the difference. Conversely, you could sell at full price but offer a low cost finance package.
3. You can speed up the selling process. By offering finance you give the customer the option to buy at once. That means that they are less likely to change their mind and might search less thoroughly for a better deal elsewhere.
4. It puts you in control. If you offer finance facilities you control of the interest rate and have free rein to negotiate, that means the process will be quicker and sales are less likely to be lost or delayed.
5. It gives you a marketing tool. You can use the finance to devise innovative pricing schemes to increase sales leads.

How a vendor leasing programme can benefit your customers.

As well as being good for you, providing a vendor leasing programme can be good for your customers. Here are four ways they will benefit:-

1. Continuity, you can offer a single point of contact for customers requiring finance for equipment.
2. Quicker turnaround, with finance, they can make the decision to buy quickly and easily. Even better, because the finance can be put in place fast the equipment will be delivered quickly, as well.
3. Leasing is flexible and allows customers to upgrade and replace equipment easily with just a simple adjustment in rentals.
4. You can offer your customers a near guaranteed acceptance rate for their application for finance. Start ups may be a little more difficult but it can still be done.

How a vendor leasing programme can benefit you

As well as being attractive, not to mention beneficial, to your customers a vendor leasing programme also offers significant advantages to your company. Here are five reasons to lease your equipment rather than sell it.

1. Leasing makes a barrier between your customers and your competitors - if it's so easy for your customer to keep trading in and trading up with you, they are less likely to look at your competitors’ products.
2. You can control the second-hand market because all used equipment comes back to the vendor.
3. You can increase profits from maintenance activity by making maintenance a condition of the leasing.
4. Your company can earn commission on finance deals for filling in a simple finance proposal form.
5. You can choose your rate of commission on any deal because you set the interest rate.
6. Any commission you earn is 100% profit.

Free service! How we can help you arrange vendor leasing

If you would like to arrange a vendor leasing programme here is how we can help.

First we will need to research the relevant information about your company and customers. Based on this information we can then ascertain what type of finance house would be most appropriate to work with you and approach a suitable candidate on your behalf. Once we have found the company which will ensure the best service to you and your customers we will help you set up the facility and keep in regular contact to ensure everything is going smoothly.

To sum up, it’s this simple. If you offer vendor leasing finance it benefits both you and your customers. It benefits your customers because it makes the buying decision easier, allows them to purchase without using precious capital and can also simplify maintenance and upgrades if you offer these services. It benefits you by allowing you greater flexibility on customer offers and pricing and allows you to keep your customers engaged with your product or service. It can increase their loyalty of existing customers because of the benefits it gives them and bring in new customers who may previously been deterred from buying by cash flow concerns – not to mention the new and highly profitable income stream it will add to your business.

If you don’t offer your customers finance, your competitors could get in first and you will be consigned to playing catch up for ever.

With expert guidance from Eland Business Services Limited setting up a vendor leasing finance programme is easy and painless. Even better this service is free.