Offering Leasing Can Boost Sales
Businesses often use leasing finance so that they can get the equipment they need to operate, be it a new car or van, some new catering equipment or the computers and other IT equipment needed by their back office staff.
Why do businesses choose to lease rather than to buy? For some it is because they cannot raise the cash any other way, the banks not being as free with their money as they used to be. For others, who could raise the cash that way, they chose to go down the leasing route as leasing does not affect their ‘bottom line’ of credit in the way that a capital loan does.
Others go for leasing as it enables them to reduce their tax bill in a more favourable way than renting or purchasing (be sure to check with your accountant here if you decide to lease).
There is still another group who prefer to lease as this often includes yearly upgrades, something that can be very useful in fast moving areas like Computers and Information Technology.
The reasons for choosing leasing are therefore plain to see, so it makes sense, if you are a seller of cars, vans, catering equipment or computers to ensure that you can offer any potential customer the ability to acquire what they need using leasing finance.
Why the above may sound simple enough, it is not the sort of thing that is easy to set up with your (friendly?) bank manager. No, you need to talk to the specialists, those finance firms who have the structure and experience to help you help your customers.
In the UK there are quite a few players in this market place, so you do have a few to choose from (always better that way). What you need to look for is a company that is sound and most importantly customer focused and efficient. It must be said that many companies in this area are ‘helpful’ but this does not make them efficient.
To be efficient in the area of leasing equates to having the right structure and processes in place, the right IT systems. Plus above all, access to funds and a sympathetic attitude to financing businesses (at least as sympathetic as can be expected these days).
So, when deciding which leasing company to offer to your customers, give them all a ring, ask them how long it takes to make a decision (the good ones will be able to get back to you within hours and some even have ‘guaranteed’ levels of funding, different levels being set for different types of equipment and borrower).
You can also check up on how well they treat their customers by checking the Internet for reviews as well as their websites for testimonials and case studies. Reviews always have to be taken with a bit of a pinch of salt, but some of them are sure to be the truth. To assist here many companies today are even going to the trouble of having their testimonials independently checked (look out for the signs like those offered by verifiedcredible). In the latter cases you can be sure that all is OK and can believe what you read (a rare thing these days!).
Once you have decided on your leasing ‘partner’ you will be able to offer leasing services for your products, something that could easily result in many more sales, and that can’t be a bad thing can it.
