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How to increase your sales volumes through vendor finance

Integrate vendor financing into your sales strategy and reap the rewards

Vendor finance - the definition of a win-win

Sales and growth-focused companies understand that a well-structured, well-priced equipment leasing program lies at the heart of their competitive advantage. That’s why successful companies have been involved in financing discussions with their customers in order to facilitate the sales process almost as long as banks have been lending money for the same purpose.

The reason is that it’s the very definition of a win-win. The vendor is able to convert sales more easily, while at the same time transforming a short-term sales relationship into a long-term mutually beneficial partnership. And because the customer has access to a wider range of products, he/she may be more likely to choose a more expensive option, or multiple products, with the happy outcome for the vendor of rapidly growing sales volumes as well as satisified, imbedded  customers.

On the other side of the equation, it’s a win for customers as well. Vendor finance allows for the purchase of big-ticket equipment needed for growth, while freeing up funds which can be diverted to other areas of their businesses.

For most business owners, none of this should come as a surprise. In fact, according to bizbuysell.com, over 90 percent of brokers cited vendor finance as either ‘important’ or ‘essential’ to speeding up the business sale process.

Why is it then, that only a third of companies actually incorporate a discussion of vendor-finance in their sales process?

The simple answer might be that they don’t know how, or are not sufficiently familiar with the benefits. But what they may not realise is that the benefit doesn’t run only one way - there’s plenty in it for them as well.

So, before we delve into the details of the different vendor finance options – here are three key benefits that your sales force should be raising with your customers right now.

Vendor finance is the smart option – so make the benefits crystal clear

It’s simple and easy

There’s no drawn-out bank loan approval required. The application process is typically quick and easy, in large part facilitated by your finance partner.

It’s a cash-flow dream

Your client no longer needs to come up with the full (and sometimes large) purchase price of the equipment. Instead they can sign-on to monthly intallments and use their capital for something else.

It helps businesses grow

If smaller companies can’t access the equipment they need to grow, they can’t compete with their larger counterparts. Asset finance overcomes this problem and allows them to purchase what they need.

And if you need a carrot to get your sales force  moving – here’s what’s in it for them.

Higher conversion and retention rates means a better bottom line - and the potential for better commissions for your sales force

A financed sale is typically more profitable than other sales

There is less incentive to provide up-front discounts as clients can focus on the monthly payment amount rather than the total cost. BizBuySell.com found that even partially-financed sales typically result in a price that is more than 15 percent higher than the cash sale.

It cements relationships and improves retention

Being able to address buyers’ needs around both the equipment and how to finance it broadens your relationship with your clients, helping move you move from equipment seller to trusted partner. It also keeps the conversation going at end-of-life or asset upgrade decisions, increasing your potential for repeat business.

So what can Eclipx do to help?

Including equipment finance should be an integral part of your sales strategy. Equally it should be easy and automatic for your sales force.

At the same time, designing, developing and implementing the best possible financing program for your particular organisation can be challenging – and that’s where Eclipx Commercial can help. We provide you with financing specialists who can work with you step-by-step by tailoring a package that works for your organisation.

Generally speaking, most industry-leading vendor-finance programs fall into one of four categories:

Private Label

You control the entire sale cycle, all under your own label.

Sponsor

You offer financing programs to unique groups of customers.

Co-Branded

You use your own brand combined with the strength of Eclipx Commercial behind you.

Joint Venture

You form a dedicated company under a purpose-built joint venture entity to underwrite, fund and service financing transactions that originate through your sales channel.

However, because we are flexible, transparent and offer a wide range of options, we can focus on aligning your organisation’s needs and values with a customised program which does exactly what you want it to.

If you would like to know more about making an equipment finance program a central part of your sales strategy, talk to one of our specialists about designing a tailored solution that would best suit the needs of your business.

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Anthony Roberts
Anthony Roberts
As Managing Director of Eclipx Commercial, Anthony is a true asset and equipment finance expert, having specialised in this area for over 20 years. Anthony’s role encompasses sales leadership, business development and strategic growth for Eclipx Commercial. He is passionate about delivering smarter, more innovative finance solutions to the market and empowering both staff and clients to achieve greater success.

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