We’ve heard it all here at WestWon with our 182 years’ combined experience in the leasing industry and counting. We hear a wide variety of reasons why catering equipment suppliers don’t offer leasing to their customers. Did you know that these companies are potentially putting their own business at risk by not offering leasing?
WestWon’s new blog series ‘Why Don’t You Offer Leasing?’ (see Part 1), describes the most common excuses suppliers use for not offering leasing. And more importantly, why they may be losing out on sales because of it.
‘Our Customers Never Ask For It’ or ‘It Rarely Comes Up’
The most common reason we hear why a supplier doesn’t offer a leasing option on their equipment or product is ‘we never get asked for it.’ There can be multiple reasons why your customers don’t ask for a leasing option, including:
Many businesses are too proud to ask for leasing options. There is a stigma in the UK that asking for a finance/leasing option means you can’t afford something. This is simply not the case. Customers don’t necessarily want to spend their hard-earned money on depreciating assets. They want to keep that cash in their business to spend on other things which will yield them a higher return in profit.
They Don’t Know Leasing Is Available
The reason your customer isn’t asking about leasing is simply because they don’t realise that leasing is an option for catering equipment. While for some specific industries – for instance, property, vehicles, and even photocopiers – there is an expectation for a leasing quotation. This still is not yet common practice for the catering industry. Although, the time this becomes the norm is fast approaching. You may not realise that most of your competitors do offer a leasing option. If your customers aren’t aware you also offer leasing, then you’re handing the advantage to your competitors.
Some customers may be nervous about asking for a finance option, because they’re not sure if they’ll get accepted for credit. Maybe they’ve had a difficult 12 months. Maybe they are simply unaware of the credit worthiness of their company and may want to discuss their options with someone knowledgeable or who can help. If your customer talks with a dedicated finance company such as WestWon, they will be more relaxed and open about their current financial status, in comparison to talking to you, their potential supplier. WestWon can also advise them on what they would need to provide us, if anything, to get the credit agreement for your equipment in place.
The solution is simple – offer a finance option! If you’re at a stage where you have agreed upon the equipment and are discussing payment options, congratulations! You have won the deal! The next hurdle is to close the deal – this is where leasing comes in. By simply asking your customer if they have seen the payment options available, you eliminate any embarrassment they could have felt if they were to ask for leasing. If a customer knows a leasing option is on offer, they are more likely to use it knowing that other customers have also been offered this.
Speaking to a finance company such as WestWon eliminates any uncertainty for your customer, but also for you. You may be wandering whether your customer can afford your equipment – are they bad payers? Leasing eliminates these worries as you will be paid within 72 hours of delivery, meaning you eliminate the potential of any bad debt, and the customer gets what they want!
For more information, give us a call and speak to our catering specialists on 01494 611 456.
Written by George Shillingford.