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What Makes Financing Successful?

Understanding the benefits and targeting your customer markets

Think about what happens when you decide to make a purchase for your home. You take some time to research the product online and then may even head to an actual store to check the product out in-person.

Once you’ve settled on the product, you need to determine how you want to pay for it. Do you have the cash in your wallet or purse to pay for the product? Does the store have a special financing program (i.e., 12 months at $99) or do you want to place it on a credit card?

Businesses take the same philosophy when they earmark budget dollars for new equipment. Sometimes, cash makes sense at that time.

However, based on the ELFA’s research, 80% of businesses choose to finance equipment.  This makes utilizing a credit card, bank loan or financing solution the next best option for their budget. Credit cards tend to have high interest rates and a limit based on credit history. Bank loans require the same type of application and require some collateral or security deposit. An in-house financing program provides a solution to retain your customers, quick approval, and flexibility for your customer. By offering a financing solution with the cash price, you can easily transition to a closed sale and eliminate the buyer’s objection over price.
Financing programs provide you and your customer with flexibility. Your customer can control the financing term, the payments, and the equipment much more than a credit card or bank loan.
  • Bundling programs can add in services like training, installation, maintenance, and software.
  • Deferred payments can give the customer a specific time frame (90 days) before making the first payment.
  • Rent to Own provides a monthly rental with the option to purchase at any time.

Your financing provider aligns with your sales strategy to pre-determine in-house programs that will fit your customers and make the process easy for your sales team. These resources also will assist when a customized solution is required for your niche customers.

By incorporating a financing quotation in every quote, you already are closer to finalizing a sale. You eliminated the buyer’s price objection and make your equipment budget-friendly.

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