In an ideal world, your customers would be able to purchase without cost or budget barriers, creating a smooth and consistent sales cycle.
Finance is an excellent enabler for businesses. It can increase the average transaction value, as customers are much more likely to increase the level of investment when there is an option to spread the cost, often spending up to three times the amount of those not purchasing using finance.
Used tactically, technology finance (also know as technology leasing) can provide an excellent selling tool offering a number of key benefits for IT Suppliers.
➀ Increase repeat sales and use finance as a trigger to purchase
- 67% will purchase hardware/software if their existing equipment has reached its end of life
- 64% of companies will be looking to purchase the hardware and software they need to grow their businesses
- 57% will purchase to upgrade or as a part of a refresh cycle
However, it is predicted that most IT budgets will remain static and in some cases decrease:
This makes the importance of offering IT finance vital for increasing repeat and cross sell opportunities and enabling you to forge stronger and longer lasting relationships with your customers.
On top of this 33% of companies have stated that budget availability will trigger a purchase. Finance simply aims to accelerate this process, given the customer’s ability to spread the cost of the investment.
➁ Win business you didn’t know was there
By offering a technology finance option you will attract leads that you previously did not know about. With 94% of B2B buyers researching suppliers online before making a purchase and 57% making a purchase decision before even contacting a supplier, if a potential customer needs an IT finance option and you are not offering one, they will never make contact.
And there’s more…
➂ Maintain & Grow Margin
Remove the need for discounting by offering customers equipment finance as a way of paying for your products and equipment. By spreading the cost over an agreed period, you no longer have to discount equipment to secure sales, helping you protect your margins.
➃ Improve your Cash Flow
When you partner with LDF, we have a joint interest in successfully completing finance agreements for your customers. We work with you to shorten the sales cycle and improve cash flow.
➄ Get Sales Faster
By offering LDF finance options, you decrease your sales cycle significantly by removing budget objections, thereby reducing the time it takes for your customers to commit to an equipment purchase.
This is an excerpt from our IT Sector paper, download How Finance can help IT Equipment Suppliers to learn more.