Wednesday, November 1, 2017

Why Sell A Leasing Solution?

Leasing is a widely used method for acquiring equipment. By including a leasing option in your proposal, your image will be enhanced with your customers and will help you to close faster and more profitable sales. As you will find – and may already know – lease financing provides your customers with unparalleled flexibility and control. Your customers likely are very familiar with leasing. Consider that:
  • 8 of 10 U.S. companies use leasing
  • One-third of all equipment purchased is financed using external funds and leasing is second only to bonds as a financing source.
Question: With all the decisions your customer has to make about their purchase, what’s going to make them select YOU?
Answer: You make the selection and acquisition process easy. You provide the right products to fit their needs. You offer service on those products. And you show the most economical way to pay for it. Your customers have several options when it comes to paying for the equipment you propose. They can:
  • Pay cash
  • Take out a loan
  • Lease Finance
Customers need to determine the best payment alternative given their accounting, tax, ownership, and cash needs.
Why Do 8 of 10 Of Your Customers Use Leasing?
  • Leasing companies assume that the equipment will have residual value at the end of the lease... so they can offer lower rental payments, and thereby provide a cash savings to the lessee.
  • Leasing requires little or no upfront cash vs. a down payment in a loan.
  • Lessees can lower the cost even more by paying one or two advance deposits.
  • Whether zero, one or two down payments are used, leasing should result in lower monthly payments than traditional loans.
  • Leasing comes out of the operating budget, making it possible for the customer to use the working capital budget for equipment purchases more central to its core product or service offering.
  • Leasing can be an additional source of capital.
  • Low, fixed-rate payments protect against inflation and enhance budget planning.
  • Leasing allows the customer to finance additional costs such as freight, installation, maintenance, extended warranties, and up-front sales and use taxes.
  • Leasing provides the ability to upgrade equipment as needs change.
Don’t lose customers that need financing to your competition. Offer a leasing solution with every proposal.