Equipment or asset finance is a proposition that suppliers can no longer ignore. Using equipment finance is proven to drive an increase in sales by overcoming common cost based purchasing barriers. This enables the purchase of the latest equipment with little or no upfront cost, via fixed manageable monthly repayments.
Impact of Finance in other sectors
Finance is a product that is used widely in consumer retail. As individuals we often welcome the benefits of finance to buy technology and equipment ourselves. Yet this option is often overlooked when it comes to purchasing within our own businesses, despite the clear and growing similarities.
In the retail sector, the promotion of a finance offering plays a huge part in driving sales, especially in sectors such as technology and furniture, where purchasing takes place at regular, often cyclical intervals. This can be a costly day-one outlay that enjoys a typical life cycle of 3 to 5 years. Businesses face the same issues when acquiring equipment, so financing the economic life of the asset makes sense, especially for capital expenditures.
Giving your customers the option to pay in fixed monthly instalments is a major advantage in the current market as the need for equipment suppliers to differentiate their offering against their competition is vital.
Changes in Business Buying Behaviour
The changing dynamics of the economy and the need to maximise budgets has had a major impact on business buying behaviour and the global equipment market. Increasingly, customers are looking at finance as a means to achieve greater purchasing efficiencies. Customers now understand that they have the power to purchase on their terms, more than that, they have come to expect it!
Equipment providers are re-thinking their business models. Growing numbers are harnessing the benefits of a finance offering in order to compete in today’s competitive and increasingly commoditised environment. Finance adds value to the sales model and creates differentiation, which in turn maintains income and drives higher sales.
Equipment Finance is the flexible way to pay
Remember that there are many influencing factors on a business' decision to purchase. Whilst the basic elements of product range, quality and availability still apply, more businesses are seeking a combination of better service teamed with easier and more efficient ways to pay.
Historically, equipment suppliers selling high cost assets have offered finance to their customers. Today, however, this has become increasingly important to all suppliers. Whether your equipment costs £2,000 or £200,000, appealing to a broader audience has become a crucial consideration as customers look for more flexible ways to purchase.
This is an excerpt from our white paper, download Winning More Business: Offering finance to your customers to learn more. You can also see our infographic here.