Six common customer objections and how asset finance can overcome them
If you sell IT equipment and software, your customers’ problems are your problems.
If they don’t have the budget they need, your challenge is to come up with a solution they can afford. If they don’t know how long they need their equipment for, if they think that they might need to hand some of it back before the end of its useful life, or if they fear that some pieces of equipment (laptops for example) may disappear, or even become obsolete and need to be upgraded – how you solve these problems become your competitive advantage.
This is where asset finance can help. Providing finance options as part of your sales process, with the right partner, will help you structure your offering to solve these common customer challenges.
So here’s a checklist - six of the problems customers typically face, and the ways well-structured asset finance, can help.
1. “I’m thinking of buying new technology outright – then I will own it”
Buying depreciating assets outright is often not the best use of funds. The value of IT equipment reduces substantially year-on-year, and the resale value of old technology is very small. Recent research commissioned by global technology manufacturers estimated that after the average lifespan of a computer, 3 years, each computer costs US$250 per year to maintain.
Asset finance via an operating lease means that after 3 years, or whatever period of time is negotiated, IT equipment can be handed back after the end of lease to and replaced with new requirements. This means your customer won’t have to come up with the cash outlay to pay for the upgrade.
2. “My budget is too small for the IT equipment I really want”
Of course everyone has to work to a budget, however, the flexibility of asset finance means that more of your customers will be able to afford more equipment, because the additional cost can be spread over a number of years. Add-ons – and additional features become more affordable when the small marginal cost is added to the cost of the equipment amortised over the term of the lease.
In fact, in recent research we conducted, we found that 90.2% of resellers and channel partners who offered asset finance as part of their sales process were able to sell more, and 75.5% were able to close larger deals.
It’s a win-win for your customers too – the same research indicated that 30% of small businesses said they missed out on opportunities due to lack of credit. With asset finance, their IT needs are taken care of, costs are known and budgeted for, and the additional cash they have in their pocket can be used to pursue business opportunities and grow. In fact, over 87% of businesses say that’s exactly what happened.
3.“Technology goes out of date so quickly – I don’t want to be paying for something which is obsolete.”
With the right asset finance structure, your customers can upgrade and update regularly, and more frequently. The cost of maintaining an IT footprint, keeping technology up to date and managing the fleet and the infrastructure can be a significant cost to a business. But it is also one of the things which help them attract quality staff – having the latest in IT. And best of all, upgrading with asset finance will usually not result in significantly higher lease payments.
By working with an asset finance provider who can solve all these problems, your customers can concentrate on their core business, not on the IT which serves it.
4. “Cash flow is my biggest headache. I need certainty around my expenses.”
Certainty of payment, flexible terms and known end-of-lease terms and costs are some of the biggest advantages of asset finance. With the right asset finance provider, all of these things are negotiable – so you can help your customers find the solution which matches their cash flow cycle and budget.
5. “I am an educational institution which loans laptops to students and teachers, so I need flexible return conditions.”
One of the biggest nightmares for schools and universities is their inability to keep track of their laptops. Without doubt, a certain number will disappear during the year, handed back early because a student leaves or sometimes it is just plain lost.
This is where a specialist asset finance provider that understands the sector can really help. Flexible return conditions are a must – for both devices and other peripheral items. It’s also possible for the finance providers to keep track of serial numbers so that specific devices can be tracked down, and for institutions to have the option of handing back a certain percentage of the equipment before the end of the contract.
6. “I’m not sure which equipment will suit me best.”
As a reseller or channel partner, this is your problem to solve – but with asset finance providers that specialise in your sector and work day in and day out with similar businesses to your own, they see first-hand which products perform best for different businesses. Their expertise can help you advise your clients better.
For a complete guide to offering finance and incorporating in your sales strategy, download The Equipment Manufacturer's Guide to Growing your Business:
If you would like more information about how we can help you jumpstart your sales growth please contact us at email@example.com or call us at 1300 832 962.