If you own and operate an equipment vendor business, some customers may be reluctant to purchase the equipment, machinery, vehicles, or other assets you sell. This reluctance can stem from various factors, including concerns about the overall cost of the investment or lack of capital. To move business owners along the path to purchase, consider offering them financing options.
Financing makes your equipment more accessible to a broader range of business owners. This increased accessibility can lead to higher sales volumes and market share growth, positioning you as a leader in your industry. Keep reading this Huddle Business Capital blog article to learn eight reasons why your equipment vendor business needs to offer financing.
1. It helps overcome budget restraints.
Don't let budget constraints prevent your customers from acquiring the equipment their businesses need to thrive. By offering in-house solutions such as equipment financing and equipment leasing, your customers can get equipment in a quicker, easier, and more budget-friendly manner. These financing options allow business owners to spread the cost over time, effectively managing their company's cash flow without compromising quality.
2. It shortens the sales cycle.
The process of selling business equipment can often be lengthy, especially when dealing with equipment with high price points. Providing convenient financing options to customers can help expedite the sales process. It's a win-win situation: customers get the equipment their companies need without straining their finances, and you close deals faster.
3. It builds trust and loyalty.
By providing convenient financing options, you show your customers that you understand and empathize with their financial circumstances. This fosters trust and loyalty and demonstrates your commitment to delivering solutions catering to their needs and budgets. Moreover, it can help generate repeat business and professional referrals.
4. It boosts your customers' buying power.
You've probably consulted with business owners who are looking at different makes and models of equipment but cannot proceed with a higher-priced purchase due to financial constraints. That's where in-house financing can help. It increases your customers' buying power and can make it easier to afford more expensive, feature-laden equipment by spreading the cost over time.
5. It increases cross-selling opportunities.
When your customers save money by leasing or financing the equipment your vendor business sells, they might be open to options, upgrades, extended warranties, or complimentary equipment that pairs well with their initial choice. This presents you and your sales team an opportunity to cross-sell to your customers and provide them with a more complete solution for their business's unique needs.
6. It helps drive sales revenue and profit.
Sales are paramount to the success of your equipment vendor business; they are needed to keep your company moving forward. By offering in-house financing options to customers, you can move more inventory faster, leading to increased sales revenue and higher profits. And when your vendor business is doing well financially, it provides peace of mind to you and your sales team.
7. It attracts a broader customer base.
According to a report published by the Equipment Leasing and Finance Association (ELFA)*, 79% of businesses in the United States use some form of financing when procuring equipment. Simply put, most companies in countless industries prefer leasing or financing equipment instead of buying it outright. Offering in-house financing opens the door to a broader customer base and more sales opportunities.
8. It helps create a competitive advantage.
Implementing an in-house financing program for customers can give your vendor business a competitive edge in the market. Business owners seeking fast, flexible, and affordable financing options are likelier to choose your vendor business over competitors who may not provide in-house financing options.
Source:
*. Equipment Leasing and Finance Association (ELFA)
Disclaimer.
Huddle Business Capital is not affiliated with nor endorses the Equipment Leasing and Finance Association (ELFA). This Huddle Business Capital blog article is purely educational and contains general information and opinions; it is not intended to provide advice or recommendations of any kind.
