We’re the first to admit we have all made mistakes (could we call them strategic mis-steps?!) in business. Here’s one mistake not to make – lose business and sales revenue because you don’t offer financing for customers. Let’s look at how customer financing programs and vendor loans and leases work.
We’ve spoken recently of ‘ obstacles to innovation ‘. That a great term for trying to understand why some of your prospects or clients don’t acquire your product and services. In fact, there is one reason that consistently ranks high in surveys as to why Canadian business owners and financial managers don’t acquire new assets or technologies or upgraded services. That reason? You guessed it, price/cost/budgets.
So is there a way to eliminate one of the largest obstacles to innovation your client has. We’ve got the answer, and it’s ensuring you have the abilities to offer financing for customers via a formal (or informal) vendor loan or lease program.
The #1 reason for firms such as yours to offer customer finance programs is probably ‘ sales ‘! We’re talking increased sales of course. The thought of getting involved in putting together such a program might seem a bit overwhelming to some of our clients. But the reality is that if you don’t choose to offer the financing yourself you do in fact have the ability to partner to offer this service to your client base.
So what is a vendor program? It’s simply your firm utilizing lease and loan financing to increase sales of your products and services. And yes, services, software being and example can in fact be financed!
Many clients we talk to feel strongly that offering such a solution is simple a strong weapon in their overall sales tool kit.
So why do we feel strongly that offering customer financing is such a good thing. For a variety of reasons. Here are some of them. In business we all agree it’s about relationships, and offering a financing solution to your client base simple enhances that overall business relationship.
All sales people in business probably regard ‘ the budget ‘ as the proverbial enemy. Boy is it hard to make a sale of your great product and services when ‘ the budget ‘ of your client precludes him or her from signing that P.O. on the dotted line. But lease financing via a customer vendor program allows you to circumnavigate that budget in many instances.
While you might dwell on your own firm’s financial condition remember that the customer has their own situation to think of. Quite often clients don’t commit to your products and services because they ‘ haven’t got the financing lined up ‘. So unbeknownst to you your customer is out there trying to arrange financing for the acquisition of your product and service. Wouldn’t it be easier to hand them that solution, ensuring your sales cycle just got a whole lot shorter?
Remember also that if customers are out there prospecting for financing solution they just might run into a competitor’s product or a financing offer that in fact makes your competitors product more attractive.
So whats our bottom line point today, simply that by offering financing for customers via client financing programs that work you can clearly differentiate yourself from the competition, and enhance your own reputation with your clients . That’s a classic win win unless we’re missing something! Speak to a trusted, credible and experienced Canadian business financing advisor who can help you set up a simple program to achieve the benefits of what we have discussed. Whether on a program basis or on a single transaction you’ll find customer programs tailored to financing your products work. And that’s a good thing.