With our combined 182 years of experience within the leasing industry, we’ve heard it all here at WestWon. We hear a colourful variety of reasons why catering equipment suppliers don’t offer leasing to their customers. However, did you realise that you are potentially putting your own business at risk by not offering leasing?
Our new blog series entitled ‘Why Don’t You Offer Leasing?’ aims to describe the most common reasons why suppliers don’t offer leasing. We will then try to explain why and how you may be losing out on sales because of this decision.
‘Our Customers Are Cash Rich’
One of the most common reasons leasing isn’t offered by suppliers that we hear frequently is ‘Our customers are cash rich, and don’t lease.’ First of all, that’s fantastic news! You work with customers who have great credit. Secondly, you are exactly the type of supplier we want to work with!
However, whether your customers are cash rich or not, the reality is that they will be leasing equipment in some shape or form. It may be their company cars, IT equipment, furniture, phones, or even the water cooler! So, why should catering equipment be any different?
If your customers are cash rich, it could be because leasing is already part of their company culture. As such, keeping cash in the business is part of one of the known benefits. Additionally, if this is the case, they are more likely to seek out a supplier who can lease them the catering equipment needed. Is it likely they will spend their valuable and hard earned cash on catering equipment, or a be lured by a leasing option your competitor is offering? If you don’t offer a leasing option to your customers, your competitors will have an advantage. This could mean you risk losing business, but why take the risk?
Benefits of Leasing
With the tax benefits received from leasing equipment, it makes sense for cash rich companies to lease equipment. Did you know that 100% of the customer’s rental is tax deductible against their corporation tax?* This deduction often makes it cheaper for the customer than paying cash. So not only are they paying for the equipment as they use it, they also are keeping much-needed cash in the business. And even better, they’re saving money too. It’s a no brainer!
Cash Rich Doesn’t Always Mean Cash Purchase
WestWon have worked with some of the most ‘cash rich’ companies in the UK, including Honda, KFC, National Express and HR Treasury. Just because a company is cash rich, it doesn’t mean they pay cash for everything. There must be a good reason they are cash rich. Why risk pushing your cash rich customers over to your leasing competitors?
Your competitors offer leasing. It’s also a free to use service. In addition, WestWon pay our catering suppliers a commission of 2% of the capital cost for every paid-out lease deal.
So, why aren’t you offering leasing again?
For more information, give us a call and speak to our catering specialists on 01494 611 456.
Written by George Shillingford.
* Subject to agreement type and equipment being financed.