If you are sailing close to the wind by not offering a finance option on the solutions you provide, here are 3 things to do when your customer asks if finance is available.
1. Say “sorry, but no we don’t”
That’s one way to play it but also one way to risk losing the deal to a competitor who offers monthly payment plans. In today’s subscription or ‘buy now pay later’ world, a chunky upfront invoice is seen as a little outdated.
By saying no, your customer has two choices. Find a supplier who does offer finance or seek their own financing which can be slow or worse, unfruitful.
Either way, all of your hard work to date may very well lead to nothing.
2. Say yes, and finance the deal in-house
Now as we always say, a deal is not a deal until it has been paid. So bank-rolling your customer means years before your revenue and profits are realised. Not to mention, a costly impact on your cash-flow. Of course, playing the roll of the bank makes you completely liable for the customer’s repayments, which in any climate is a risky manoeuvre. What if the customer defaults? What if they go into administration? Are these risks you can (and are) willing to take?
If negative cash-positions and collection challenges are what you went into business for, then you’ll do well by financing deals in-house.
3. Say yes, and then frantically Google finance/leasing companies
Finding a suitable credit broker or bank that really understands your business and integrates neatly into your existing sales process is a time consuming process. Whilst your customer awaits their finance quote, you’ll be impatiently dealing in lengthy exploration meetings and onboarding processes, signing terms that are quite frankly overkill for your immediate requirements, all the while, running the risk of your customer finding a faster solution elsewhere.
“I’ll look into a finance option when my customer requires it”, is something we hear often, but the reality is, time will be of the essence and the funder you choose to Partner with will be born out of a rushed decision, rather than an informed one.
With all of these options considered, it makes sense to set up a no-obligation account with a funding provider that understands your business and has a swift quoting and application process ready and waiting for when the need arises.
Lease Group already works with over 1,000 suppliers in multiple sectors, putting instant quotes and credit decisions at the fingertips of salespeople via our market-leading platform.
What’s more, there’s no obligation and you can be set up with us within the hour.
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