More and more suppliers are becoming enlightened to the benefits that offering finance to their customers can provide both them and their customers.
Quite simply put, by offering leasing many suppliers of ours have seen an increase in their sales. And quite understandably so, as this is a far more attractive option for their customers compared to that hefty upfront cost. Therefore, not only does this option benefit your customers but it will also benefit you. Throughout this blog I will be listing the advantages finance can offer both you and your customers.
There are several advantages to offering your customers an alternative finance option to paying cash up front. Just to name a few:
- Breaking the budget barrier
Sometimes, the only thing holding customers back from making a buying decision is the lack of funds. Quoting a monthly rental figure will make it easier for your client to budget and finance their purchase.
- Watch your sales surge
Often, a company will consider how to finance a purchase before they choose the equipment or supplier. Many sales are lost even before a prospect calls you. Talk about a monthly rental option and watch your sales surge.
- Improve customer loyalty
Customers who choose finance are more likely to become returning customers by renewing their finance agreement with you. This is a great way to gain a long-term competitive advantage.
How leasing and finance helps your customers
Now let’s talk through why your customers will appreciate you offering a leasing option.
- Cash flow advantages
Small, fixed monthly payments offer a huge advantage to your customer’s cash flow, whilst also regulating the return on their investment.
- Spreading of VAT liability
Not only is the cost of their investment spread, but the VAT on that investment is distributed, also saving them from paying that lump sum from the get-go.
- Tax planning
Using a lease rental agreement, 100% of the rental is deductible against a company’s Corporation Tax bill.
- Your customers can remain competitive
With you making the latest equipment affordable to your customers with budget-friendly payment plans, it will most likely put them at an advantage to competitors in their industry.
- Alternative funding lines
There is no need for your customer to use up an existing funding or bank facility.
- “If it appreciates, buy it. If it depreciates lease it.”
Wise words from famous oil baron Paul Getty are smart advice to follow. Leasing will save your customers from losing money on depreciating assets, and instead give them the opportunity to renew their equipment once their agreement is over.
Contact Us
If you want to explore your options for providing finance to your customers, please contact of our sales team on 01494 611 456 and they’d be happy to advise you. Alternatively, you can drop an email to hello@westwon.co.uk. You can also see more over on our LinkedIn page.