Do You Have An Equipment Leasing Program
In Place For Your Customers?
Or, even a better question would be if you do have an equipment leasing program in place, is it well suited to the lease financing requirements of your customers, or is it costly you sales.Ok, lets start with the first question.
An equipment leasing program for your customers is when your business has an established relationship with one or more leasing companies that are capable of financing the type of equipment you have for sale as well as the typical customer financial and credit profile.
The customer must still qualify for the financing themselves, but the starting point becomes one in which they are working with a highly qualified leasing company that is seriously interested in providing financing versus starting from scratch with a lender or leasing company that 1) may or may not be very interested in the assets, and/or 2) that does not have any comfort level with the vendor selling the equipment.
To answer the second question, a poorly suited equipment leasing program can potentially do more harm than good.
For instance, if customers are being declined for credit more often than not, there is a good chance you’re going to lose out on the sale to a competitor that has a more suitable equipment leasing program in place.
In the end, the true measure of any equipment leasing program is the bottom line of your business … did providing a readily acceptable financing program generate more sales and profits for your business or not?
Equipment Leasing Programs Can Make Or Break A Deal
The sales process can be hard enough, but to add the unknown variable of available customer credit is going to just make it that much harder.
And while no equipment leasing program can guarantee you that your customers are going to be approved for credit, a good program should be able to provide a financing option for the customer’s consideration at least 80% of the time.
If that’s not the case, then your equipment leasing program is likely not covering off a broad enough spectrum of potential customer credit and financial performance.
The best way to either get an equipment leasing program in place, or to find out if what you already have can be improved upon, is to give us a call so we can provide a free assessment of your requirements as well as recommends for a equipment leasing program that is capable of helping get sales closed and profits earned.