Since 1969, United Leasing & Finance has been structuring vendor lease programs across a wide array of industries. We enjoy successful vendor relationships with companies nationwide.
You will find our size and expertise means we are fully capable of servicing not only your needs, but also your customer’s needs. Coupled with our quality and service philosophy, United Leasing & Finance provides customized services and financing solutions in a timely and personal manner. Our goal is to help you close the deal!
Here are a few ways your customers benefit from leasing and you benefit from the speed and ease of our transaction process:
Currently, more than 80% of all B2B equipment sales are financed. Offering payment options automatically keeps you in front of this group.
Financing allows you to get paid in full right away. You make the sale, we take the risk.
Cash flow and cash reserves are more important to businesses than ever. Not offering financing means you are susceptible to losing these customers to finance-offering competitors.
No more having customers hold up sales while waiting for the bank or other funding. Offering instant financing also takes “let’s see if we have the budget” out of the equation.
Offering a payment option is a good benefit to tout, but it can go further. Smart companies are tailoring custom, creative financing and lease programs to their clientele.
By offering financing, you can offer low monthly payments making it easier to increase your margins. Financing helps the customer avoid making a large cash outlay and frees them up to make more purchases.
How To Sell Financing
Many equipment sales are lost when the equipment sales rep does not offer financing and leaves it up to an outside party like the customer’s bank. If the bank turns the customer down, chances are the customer will look to the equipment company that does offer financing in their proposal. Be a one stop shop. This loss of control during the sales process is an open door for the customer to entertain other proposals from competitors; control the sales process from start to finish.
The biggest mistake equipment sales reps make is to wait until the end of the sales process to bring up financing. Waiting until the end of the sales process leads to wasting time on customers that don’t qualify for financing and don’t have cash to pay for it. Another downside of waiting until the end of the sales process is that the equipment sales rep has stripped out any gross margin upside that could have been used to pay for a finance promotion like a 90-day skip or interest rate reduction, that would have put them over the top and win the deal.
- Do you plan on financing your equipment purchase? (Starts the equipment finance discussion on the front side of the sale).
- How long do you plan on using the equipment? (Lets you know the term of the finance contract)
- What do you typically do with old equipment when purchasing new? (Good indicator if a FMV or Guaranteed residual lease would be beneficial. Using a residual allows for lower payments during the lease term and is usually a good fit if the customer typically trades in or sells the asset at the end of the term)
Including a finance quote on every deal at the very least lets your customer know that financing is available.
Don’t be afraid to ballpark a monthly payment verbally during the initial part of the sale. This allows you to judge the customer’s reaction to pricing.
When more than 50% of the equipment is financed, the best sales reps will quote a monthly payment without ever discussing the equipment cost. This allows them to maintain higher gross margins by using the flexibility of leasing to maintain pricing margins.
- One of the best ways to justify the price of your equipment is to use a monthly payment to minimize the price shock. Use creative ways to breakdown the cost of the equipment to show how your equipment can help improve the customer’s sales and profitability.
- Example: Assume a piece of equipment costs $50,000, the customer does 20 jobs/month, each job pays $500, and the lease payment is $1,000. Show the customer that the cost of the equipment would only be $50/job (Lease payment of $1,000 divided by 20 jobs per month) and that it would only take 2 jobs/month to pay for the equipment.
Getting a credit app completed increases the customer’s level of commitment to the sales process.