When your business is selling vital operational products to other businesses and organizations, it is crucial to understand the role that equipment leasing plays in the success of a sale. Because 80 percent of businesses in the United States use lease financing to acquire the capital needed to grow, lacking sufficient resources to make this possible can be detrimental to the sale.
Your customers consider equipment leasing over buying because many may not have access to the up-front cash required for straight purchases. Moreover, equipment leasing preserves bank credit lines, allows for upgrades and add-ons and, and as an added bonus, provides significant tax advantages. As a result of this freedom from pricing restrictions, your customers have the ability to make larger purchases.
Offering equipment leasing also benefits your customers because you spend less time collecting accounts receivables and more time providing your niche goods and services to customers. Another mutual benefit for you and your clients is that equipment leasing companies often offer direct support to make the entire process run without a hitch.
On your end, the leasing process is simple. Simply provide your client's information and the lessor will care of the rest, dealing directly with the client to attain the necessary information for their approval. Once all the documentation is in order, a purchase order for the products is submitted and the payments are completed upon verification of delivery.
Use the following tips when deciding to use equipment leasing as a closing tool:
- Keep customers focused on the benefits of your product rather than the price.
- Be proactive by introducing equipment leasing and highlighting the advantages while on every sales call and in every proposal.
- Don't assume your customer can pay cash up-front. Instead, advertise monthly payments in your product literature.
- Quote monthly rental early-on in your presentations to assure your customers are aware of their payment options.
- Facilitate the addition of new equipment by focusing on the low monthly payments.
Several informational tools are available online to help you land a sale using equipment leasing as a selling point:
- Online leasing quote calculators instantly generate equipment leasing proposals for your customer
- Rate sheets
- Informational guides that you can provide to your customers
- Tax benefit information and tips regarding equipment leasing.
- Links to online leasing applications.
- Website links to valuable sites so your clients can easily access to leasing information
As the economy continues to recover and businesses increase their spending on new capital, exercise these sales tips to assure you're using equipment leasing opportunities to your advantage.