Is your business growth as strong as it could be?
In our survey of 646 Australian SMEs with annual turnovers of A$5-100 million, we found that the average business is predicted to grow by 3.7% over the next year. Contrast that with 5.9%, the average figure for those businesses who, as equipment vendors, included financing options as part of their solution.
Download our free whitepaper based on research with East & Partners
If your company’s forecast isn’t closer to the latter figure, the first step is to uncover the hurdles to growth, then find a way over (or around) those hurdles. And the way forward could be simpler than you expect.
Sales. The natural place to start.
Without sales growth, your business can’t flourish. But if you’re confident about the quality of your product or service – it can be hard to understand why sales aren’t going gangbusters. The simple answer is that in plenty of cases the quality of your product or service offering isn’t the problem. Often enough, your customers’ ability (or inability) to pay, i.e. their capital constraints, may prohibit them from signing on the dotted line.
Asset finance. It’s the key to sales growth.
That’s where asset finance comes in. According to research conducted by Eclipx Commercial [hyperlink to whitepaper], even though 65% of small and medium sized businesses already use asset finance to buy the equipment they need, nearly 25% of Australian businesses with turnover between $4 million and $40 million p.a. aren’t considering it. But at the same time, 30% of businesses reported missing out on opportunities due to a lack of credit.
Sounds a lot like a wasted opportunity. On both sides of the fence.
Clearly most of your customers could do with better finance options, but quite a few (16%) aren’t sure how to access it.
It’s a win-win which is hard to ignore.
Our research confirmed that over 90% of vendor businesses which offered asset finance sold more, 75.5% closed larger deals, 63.7% closed deals faster and 66.7% said their customers felt they were better served. And far from the 21 days the banks take to approve loans, a specialist asset finance provider you partner with can take as little as two hours.
We know that vendors and equipment manufacturers alike are leaving money on the table and missing out on the sales they need because of the capital constraints of their clients.
Banks are letting small and medium businesses down.
While traditional banks are often the first port of call, many small and medium sized businesses, burnt by inflexible lending practices, a hostile reception, and slow turnaround times (on average 21 days from application to approval), don’t really want to go there. That’s a real opportunity for you.
Two thirds of small and medium sized businesses report that they are ‘less than satisfied’ with their bank, and three quarters stated they would definitely switch for a better proposition.
What if you could be the one to offer that better proposition? Imagine if the 75% of businesses which said they would move for a better offer did? You’d be looking at sales growth through the roof.
If you are selling something which could be financed, you should be offering finance.
Plenty of vendors don’t think about offering finance, or in some cases, even realise that they can. Only 15.8% of vendors include finance as part of their product package.
So why wouldn’t you think about offering asset finance. After all, what have you got to lose… except your next big sale?
RESEARCH: VENDORS NOT OFFERING FINANCE ARE MISSING OUT ON SALES
Equipment vendors offering finance sell more, close larger deals, and close deals faster.
Download our free whitepaper The Equipment Manufacturer's Guide to Growing Your Business to read more about our research on 646 Australian equipment vendors and buyers.