In light of the recent Global Financial Crisis (GFC), businesses are always looking for ways to remain competitive and at the forefront of their industry, and more recently expand their business, without the normal associated price tag. Finance solutions tailored to individual businesses needs offer budget-friendly options to obtain the equipment required to succeed in the industry without having to outlay capital upfront. As an equipment supplier, by offering vendor finance options to your clients, you can offer them the peace of mind of the latest business equipment without the upfront cost, while at the same time allowing you to gain a competitive edge in the industry.
There's more than one advantage for your equipment supplying business to offer vendor finance to your clients.
1. Reach more clients - by offering your clients a variety of payment options that can be tailored to the needs of their business, you are effectively reaching a greater number of clients, as money is a major factor behind equipment choices. 2. Retain more clients - by offering attractive finance options to your clients that stand out when compared to other business equipment suppliers, not only allows you to reach more clients, but it also allows your business to retain more clients over a longer period. 3. Know your clients - by creating a relationship with your clients from the start, learning their credit history, company background and even their goals, your business is able to accurately gauge which clients to offer finance options to. Knowing this information from the start will allow your business to forecast revenue and predict cash flow. 4. Avoid heavy discounting - by offering attractive payment plans, there is less reliance on discounting and other business gimmicks to make sales. 5. Long-term cash flow - with payment plans for your client established from the start, long term cash flow for your business is guaranteed as your clients make payments over the approved timeframe. 6. Boost sales - agreed payments for business equipment over a set timeframe, means the needs of the client are met whilst also often increasing the bottom line profit of your business. 7. Expand your business - through reaching more clients by offering a range of payment options and avoiding discounting, your business is likely to expand as more businesses realise the potential such payment options for equipment could hold for their business.
Vendor finance gives your clients access to the equipment they need to remain competitive in their industry without having to worry about upfront payment concerns. These options are just as valuable to you as a business equipment supplier as they are to businesses looking for equipment.