When offering sales aid leasing can have such an impact on your business, you should give serious thought to how your needs will transform over time – ideally before the transformations happen.
Changes in areas as diverse as new sector opportunities, average order value or even the legal structure of your customers can require changes to your leasing offering.
In our experience of clients who come to us from other providers, there are five main areas to watch out for:
"My firm is entering new sectors and markets"
It’s important to liaise with your leasing partner to ensure that their solutions can accommodate your sales plan, without any impact to your existing sales processes. Ideally, they should also have the capability to view any new opportunities with the same appetite as your existing markets.
"We’re going to concentrate on our current sweet spots"
Concentrating business in one specific sector can potentially place the leasing provider at risk of increased repayment arrears or bad debt. Ultimately, this may result in rate increases for your clients, heightened credit assessment processes leading to more declines and even the possibility that funding to this sector may be withdrawn.
"Our average order value is likely to change"
Fluctuating order values can impact leasing by raising the processing requirements for things like credit proposals, underwriting, documentation, invoicing and pay out. The risks here are underperformance on SLAs and a slower cash cycle.
Increasing order values alter the credit underwriting model even further and can result in the need for a more granular assessment and potentially the requirement for more customer information. It can also result in underperforming SLAs, since decisions are likely to take longer, and/or result in increased declines.
"We’re selling to different kinds of customer"
Many leasing providers have strict credit policies that may exclude certain markets and business models – for example, start-ups, partnerships, charities, sole traders or corporates.
It’s likely that you already know of opportunities that may be being missed or are not fully explored due to restrictions with your leasing solutions.
"We’re extending our range"
Leasing solutions are typically agreed on products that you already regularly sell. As technology advances you may want to launch new products, so it’s important to understand whether your leasing solution can accommodate them.
Changes to hardware, software or other intangible aspects can affect your leasing solution, and some leasing providers may have limitations on the level of product intangibility of the product which in turn, may have an impact on your leasing opportunities.
Download our white paper
This blog was taken from our white paper, "Continuous transformation - Unlocking the power of sales aid leasing". In it we look at how sales aid leasing can transform a business’s fortunes – including taking an in-depth look at the success stories of two of White Oak UK's own partners.
We’ll also highlight some of the things you should be looking for to help your leasing offering keep up with your business success.
We hope you find this paper interesting and informative. If you have any questions, or would like to contact us about any aspect of sales aid leasing, just call us on 0330 058 0836.