Selling equipment is easier when you offer financing. There is no question about it. With a Vendor Finance Program by CCR a manufacturer or distributor can offer financing options to customers that need to acquire the equipment or software.
A successful Vendor Finance Program requires three parties to collaborate in unison. One the Vendor that can be the manufacturer or a distributor/reseller; Two the financial entity; and Three the customer. CCR will be design a customer finance program so that each party will perform its part to the end result of a new sale to a satisfied customer.
Programs in Latin America programs can be designed country specific. CCR will contact both the local representative of the manufacturer to understand its needs and that of its customers and the local financial entity to get input on what is available on the market. The Program will be designed with a holistic view that incorporates the nuances of that territory.
CCR can also manage the on-going program to facilitate communication flow between the manufacturer, the distributor, the financial entity and the customer; implement promotions to boost specific products or seasons, monitor results to suggest modifications that improves the process, compare results, reporting, etc.
CCR has a network of banks, leasing institutions and other financial entities in various countries in Latin America that could implement this programs.
What are the benefits of a Vendor Finance Program?
One stop shopping. It makes it easier for your customer to make the buying decision as the ‘how to pay it’ question is resolved. This also means more control on the selling process as the customer will not go elsewhere to find financing, getting exposed to the competition.
Some food for thought:
- Financing can be a selling tool
- Sell more equipment. Thought process shifts from a big-cash-expense analysis to low-monthly-payments, thus taking pressure off the selling price and focusing on the appropriate characteristics, size and add-ons of the equipment
- Equipment has a higher ROI as less of the companies money is invested. Successful business customers typically look for financing options. Vendor is adding value
- Sell more frequently. Monthly payment makes it easier to pay. End of lease generates a selling opportunity
- Possible tax advantages for your customer to benefit its bottom line
- Sales process is shorter as the financing process can be done in parallel to avoid waiting for price negotiations to be settled to start discussing financing
If you are not currently offering a financing option you are missing a great opportunity. Providing customers with a way to finance your product can make the difference between high growth and stagnation.