Many catering equipment distributors offer a leasing option to their customers. But many still do not realise the full benefits their company often receive from offering this free-to-use service.
WestWon gives you an insight into the benefits that offering leasing can bring.
Increased Order Values – I’m sure you’ve been in this scenario before. You’re talking with a customer about what they want. However, their budget limits them to only ordering what they need immediately, and not what they really want. Offering a leasing option means you can give the customer exactly what they want, at a price that they can afford through leasing, also known as asset finance.
A lease spreads the cost of the initial outlay across monthly or quarterly payments, up to a 5-year term. Ultimately, this means the customer is able to spend more on more equipment and more often than not, at higher specifications. This leads to increased order values and a higher profit from your sale.
Protect Profit Margin – If you are offering a finance option and the customer sees the project split into monthly or quarterly payments, you are less likely to be asked for discount. Therefore, you are making more money than if they pay with cash. Additionally, WestWon offers our catering suppliers 2% commission on all paid-out leasing deals. This not only protects your profit margin, but could potentially increase them!
Speedy, Guaranteed Payments – Have you been stung in the past with late payments or even by dreaded bad debt? Maybe you’ve got short payment terms with your manufacturers, so you cannot offer 30, 60 or even 90 day credit terms to your customer, while your competitors can? Leasing offers a solution with quick, speedy and guaranteed payments. Your invoice will be paid within 72 hours of the equipment being delivered or installed. Bad debt and worries about receiving payment are a thing of the past!
Client Retention – As all catering businesses know, repeat business is the key to success. It is estimated that 40% of an average company’s revenue comes from customers they have already worked with. Sometimes this estimation is even higher! So, client retention is vital in the day to day life of a catering equipment supplier, and first impressions count. This is the same with leasing. At WestWon, we know how important first impressions are. This is why we’ve worked with some of the largest and most reputable companies in the UK.
By using our free Partner Portal, you can see all of your customers who are on an existing lease. Client retention is all about timing. Our portal will let you know exactly when their current agreement expires. 3 – 6 months before the end of the lease, you’re more likely to repeat the order if you make contact during that period and see if they want some more equipment, right?
Soft Costs – Many people don’t know this, but you can add an element of soft cost on a lease. Installation costs, project management costs even the decoration of the restaurant/bar can be leased! All of this can be bundled into one package for the customer. This allows them to spread the cost of everything over a term of their choice.
Simple Processing – The leasing process is very simple. High Street lenders are reluctant to fund the hospitality sector due to a perception of higher risk, and therefore, place more application process hoops to jump through. Our competitive funding lines have an appetite for such equipment agreements, since the asset holds it value well throughout the term of the lease. Our process is therefore much simpler.
The simple process is as follows: we send you a quote for your customer, should they wish to proceed we get the credit in place (usually within 24 hours), raise documents and send to the customer to be signed. Once we have the signed documents back, and the equipment has been delivered and installed – you get paid in full within 72 hours. Simple for the customer and the supplier.
WestWon offer all of these benefits to you and more. If you’re interested in working with us or would like to know more, please give us a call on 01494 611 456 or email firstname.lastname@example.org.
Written by George Shillingford.