How to sell the benefits of asset finance to your customers and grow your business
Five things to think about before you choose a partner.
Now you are convinced of the benefits of offering asset finance options as part of your sales process, the next big question is “who should provide that finance?”. You’re not a finance expert yourself – but the good news is, there’s no need to be. Your best bet is to partner with a reputable, professional finance provider with experience in your industry, and practical knowledge about the best options for your clients.
Your client’s capital constraints may be stalling your sales growth
Your customers need the latest technology and equipment to grow their business, but the large capital outlays required can mean they miss out. If your sales team are telling you that sales are being lost due to clients’ inability to finance the equipment they need, there is a solution.
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.
Even with strong sales revenue, long accounts receivable terms means you are being treated like a bank which offers interest free loans. Consequently, most small to medium businesses understand that well managed cash flow makes the difference between just surviving and really thriving. So, with short-term cash flow being the number one reason cited for accessing financing, and access to finance the most common barrier to innovation according to ABS data, a successful business needs to manage cash flow tightly and leverage it for growth. To help ensure your business falls into the “thriving” category, here are the most common reasons you might be experiencing cash flow difficulties and how asset financing can help.
Before you sign-up to partner with anyone, think about these five thingsIf you are an asset finance provider, chances are you are spending a lot of time thinking about your service offering. Is it enough anymore to simply provide customers with finance – or should I be trying to provide more? With US statistics showing managed solutions are on track to account for 22% or more of the total equipment leasing and finance industry volumes over the next 3 to 5 years, it’s a good question to be asking.
While you can read my overview of important insights from the 2017 Alta Group conference in my earlier post, “Adapt or Business as Usual? Challenges and opportunities in equipment finance”, one of the key themes occupying equipment finance providers globally was the impact of technology.
In February this year I attended the 2017 Alta Group Equipment Leasing & Finance Industry Summit in the United States, a think tank discussing the future of equipment finance.
According to the Australian Government’s Financial System Inquiry, Australia’s two million small and medium sized businesses employ almost 70% of the workforce and are major drivers of economic growth. They account for over half the output of the private sector, and are a significant source of innovation in the economy.
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.