With today’s economy, equipment manufacturers and dealers have new struggles. Budgets are tighter, customers are spending less, and banks have less money to borrow. But that doesn’t mean you can’t increase your sales. In fact, there’s a way to close more sales by offering a way for customers to more easily purchase your products. These are the major benefits of equipment leasing.
The key is to offer consumers more options. Instead of marketing the total purchase price of the equipment, advertise a monthly payment. (Think car dealers – how often do you see a total price advertised?) A monthly price can help customers see exactly how they can afford your equipment based on their monthly cash flow. This more affordable payment also attracts buyers who may have previously wavered on the price, since they don’t need to go through the bank for a large loan, or tie up all their cash reserves. Figuring a monthly payment is just the first step. Next, advertise your own financing programs. By providing in-store (or on-website) financing, you can maximize impulse buys, increase upselling opportunities and minimize the hassles buyers have with time-consuming outside finance methods.
So how do you provide in-store financing?
Fortunately, it’s simple. You partner with an equipment leasing company which can help you present a completely seamless transition to the buyer. Depending on which company you work with, your business can receive all of the forms and paperwork, guidelines, instantly calculate a monthly payment, and even a get a personalized website banner and landing page that outlines the leasing arrangements. The leasing arrangement helps you get the sale, but the leasing company does all of the work.
Is leasing right for your customers?
The Equipment Leasing and Financing Association (ELFA) research shows that eight out of ten U.S. companies lease some or all of their equipment. And nine out of ten say that they will use equipment leasing again. Of all the ways to acquire equipment, leasing is the method most frequently used for all equipment types. According to the U.S. Department of Commerce, U.S. businesses acquired approximately $582 billion in capital assets during 2002 and, of that, about $280 billion were leased. This translates to about 31% of all equipment as being acquired through leasing. ELFA predicts that leasing will continue to grow by at least 6% annually.
If you haven’t considered leasing before, this is the time to do so. Equipment leasing provides a faster turnaround than working with a bank, frees up working capital, and can offer tax benefits. Leasing benefits can be maximized when working with a company that provides individualized and flexible payments, such as seasonal payments, skipped payments, advance payments and no pre-payment penalties. Choosing a direct lender provides flexibility, increased approval ratio, and a quick turnaround that allows you to personalize the leasing process to fit your business.
Ready to start offering leasing to your customers?
Find out how easy you can get started today by applying for our vendor program.
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Take Advantage of the Benefits of Equipment Leasing
Advantage Equipment Leasing is based in Milwaukee, Wisconsin and we serve clients nationwide in the small ticket category. We are not brokers, so we can offer you better rates. And since we lend directly to you, we offer more flexibility on payments, such as no penalties for prepayment, and a personal approach that you don’t receive with computer generated companies.
Contact us online or call us at 800.949.7040. .