Offer your clients the possibility of financing the equipment that you supply through Vendor finance, the ideal leasing solution for your clients.
With Vendor Finance you offer your clients the possibility of accessing the latest technological equipment, without using their bank lines and thus maintaining their market share in an environment as competitive as the current one.
In today's competitive environment, your customers need flexible solutions to take advantage of business opportunities. In this post, we explain why leasing through tools such as Vendor finance can help you increase your sales.
What is Verdor finance?
Vendor Finance, also known as vendor financing, is used by equipment vendors to increase their sales.
In other words, Vendor Finance allows your client to take advantage of their business opportunities when they arise. Accessing your company's equipment through leasing, without having to affect your cash flow, or use your bank lines. Which presents a very attractive option for most companies.
The deal is made when the vendor introduces the buyer-customer to his financier, who approves the line and provides him with the funds to purchase the vendor's equipment.
In this way, the equipment supplier maintains control over the sales process and eliminates the uncertainty that can arise when a client requests financing from unknown third parties.
At the same time, Vendor finance offers more benefits for vendors. Since this leasing tool allows your buyers to acquire more equipment, it is easier to retain them and ensures that they have greater liquidity.
If we add to this the tax advantages and payment facilities, you will be offering your clients a flexible, valuable and very attractive solution, which can only strengthen your relationship and make it much easier to close deals.
What are the benefits of using Vendor finance?
Supplier financing offers many other advantages, it not only helps buyers, but also sellers.
Vendor finance includes the same advantages as a lease, but goes a little further. We are going to summarize them for you, so that you can decide with criteria if it is the solution that you really need.
Advantages for you, supplier
Increase sales closing
Leasing is a fast, flexible financial solution that customers value as it allows them to get the equipment they need, when they need it. Thus, financial obstacles are removed and the sales process is accelerated.
Increase customer retention
Leasing is the perfect answer for customers without budget approvals. In this way, you can respond with leasing, a flexible financial tool that ensures your sale to your client, excluding the competition.
Improve sales and margins
Offering a financial solution early in the sales process allows you to break down costs into periodic payments, making the initial investment less expensive. This, in turn, reduces margin pressures as less attention is paid to the price of the equipment.
Create additional sales opportunities
Offering leasing increases your chances of selling a more complete solution and additional equipment.
Alter Finance will help you structure the payment plan that best suits your client's budget and needs.
Forget about administrative procedures. Once the leasing has been chosen, your Alter Finance contact will help you manage it quickly and easily.
Advantages for your client
Purchase or renewal options
At the end of the term, your customer can choose to purchase their equipment, upgrade to new equipment, or continue financing at substantial savings.
Conservation of the investment budget
Since your money is not tied to equipment costs, your client can spend it on other items, such as supplies, personnel, and training.
By blocking payments now, the customer can avoid the risk of inflation in the future. Fixed monthly payments also help your customer to better budget for the life of the contract.
Other costs such as maintenance, software and training can also be included in the monthly payment.
While most banks only lend in the short term (usually 12-36 months), Alter Finance offers financing terms ranging from 12-72 months.
No impact on your credit lines
By offering you financing with a funder introduced by you; the client does not use its financing lines with its relationship banks, which can continue to be used for other operations.
Alter Finance, experts in leasing solutions such as Vendor finance
Leasing solutions such as Vendor Finance are one of the most useful financial tools for those companies that need financing to purchase a product.
As we have explained previously, Vendor finance is a leasing solution that accompanies the sale between client and supplier.
This leasing must be managed by a financier, such as Alter Finance, which will help you manage it quickly and easily.
At Alter finance, we are specialists in alternative financing. We make the financing process simple, fast and efficient. Always, tailored to your business, adapting to the moment of growth of your company.
If you are considering some type of financial solution beyond banking, such as Vendor finance and you are looking for advice, do not hesitate to contact our team of experts.