Financing comes in handy for equipment/software vendors looking to sell more of their product. Buyers love having the option to break upfront costs into smaller and more manageable payments.
Of course, as a vendor you are not in the business of lending. You might think that providing financing to your customers will mean mountains of paperwork, payment delays, a steep learning curve, and legal ramifications. All of this could not be further from the truth when you partner with a financing company like GSG Capital. That is because your financing partner will take care of all that for you.
Here are the 3 big reasons you need to offer financing to your customers:
1. Financing takes the attention off the price tag
Take your buyers focus off of the price tag by offering an easy to understand monthly payment. Even the most seasoned buyers get sticker shock sometimes. That’s because a buyer is thinking about their business cash flow in a monthly or seasonal way. Conceptually, it’s easier to understand a number that fits into their regular cash flow.
Let us look at an example: Say your customer wants to buy a $40,000 mini excavator. Which do you think makes more sense to them?
Statement #1: “The mini excavator costs $40,000.”
Statement #2: “The mini excavator costs $800 a month.”
$40,000 sounds like a lot of money – especially when you have to pay it all up front. Conversely, $800 is a very manageable expense for nearly any business owner who will be earning income off that mini excavator!
These days, everyone is running their businesses on thin margins. This means most of the cash-flow available is tied up in day-to-day operations. As such, they probably can’t buy equipment with cash. Financing overcomes this by tying the equipment costs into their day-to-day cash flow.
2. Retain your customers longer
Happy customers come back (and send their friends to you). It’s that simple.
Your job as a vendor is to make the purchase experience so positive that you are the customer’s first thought the next time they need to purchase again or upgrade.
How does offering financing help with this? You will save your customers countless hours searching for a 3rd party lender. The question of how your customer will pay for the equipment is already addressed. Instead, you can use the time to really focus on what the customer needs.
3. Financing gives you flexibility and your customer options
Without financing, you only have one payment option to offer your customer: lump sum payment in full. Chances are good, if they can’t afford that, you will suggest they talk to their bank about securing a loan. Weeks, possibly months later, the bank has finally approved them.
By offering financing, you don’t need to send people away. You can easily offer on-the-spot financing with plenty of options.
Let’s not forget to mention that financing takes only minutes, sometimes a bit more, to approve your customers. Paperwork is minimal.
Take Control of Your Sales with Financing
Start selling your customers equipment and add ons based on what they need, not on what they think they can afford. It’s much easier to handle price objections when you can break the costs into small affordable payments. Your customers will appreciate how easy it is to work with you, and they’ll come back. Financing covers all the costs including taxes, documentation, shipping, and inspections.
You’ll can get up to 100% paid on the day of the purchase too.
Contact GSG Capital at www.gsgcapitallc.com or info@gsgcapitalllc.com