You’ve got a successful business selling equipment (or you’re starting out and looking to increase sales).
Chances are you’ve already got it down when it comes to finding customers and selling to them.
But did you know that you might be missing out on an important opportunity to increase sales with a vendor finance program?
It’s not a surprise to know that sometimes customers will walk away from a potential deal when they realize that they don’t have the funds or can’t afford the payments. Or sometimes because they realize that in order to secure a deal, they’ll have to go to a different vendor or lender just to the funds to buy from you.
In the eye of the customer, that can be a real hassle!
This is where equipment vendor financing comes in.
Start a private label vendor financing program.
In order to secure customers and make sure that you’re not losing them to your competitors, you have to make it as easy as possible for them to buy.
Know Your Target Audience
First you’ve got to recognize who your audience and target demographic is. Are you dealing directly with consumers of your product? Or are you targeting other businesses?
Not only does the financial specifics change based on who you’re working with, but the way you interact with each type of audience will vary.
Understand Your Delivery
Once you understand who your target audience or demographic is for your services, then you can figure out how you’re best going to approach them.
Some companies like to offer financing in-person, directly to the customer. Others like to use a website and an application form.
Both have their merits. You want to make sure you are not making false or misleading (but “tempting”) offers on your website.
If you try to “persuade” a customer with “tempting” offers and they realize what you’re doing when they apply, you’ll look like a shady company. That’s not what you want to have for a reputation.
Using an online application can also result in losing out on potential sales and transactions, because an online application doesn’t have the “human touch” to be able to tell whether or not it’s possible to work through “deal breakers” that an online application is hard-coded with.
As a business owner you’ll have to determine what the best approach is to reach out to your customers or whether or not you want to provide multiple avenues.
At the end of the day, you’re still going to want to get as much information as possible from your applicants and potential customers:
- Credit scores
- Bank statements
- Tax information (e.g., tax returns)
- Information on personal finances
How you get that information is entirely up to you, but we encourage you to be as open as possible with potential applicants through your equipment vendor financing: some customers that might be “deal breakers” could also be your best customers if you work with them.
At the very least, if you use an online application software to filter applications, at least manually look through all of the entries and reach out to any applicants that stand out.
Offering equipment vendor financing through your own business or “as” your business is a great way to secure future customers that would otherwise look elsewhere.
Being able to minimize the number of steps or the amount of “third party” people they have to go through helps you to maintain leads, regardless of what kind of business you’re operating. Especially when it comes to high ticket products like heavy industrial equipment, you don’t want to ignore potential leads and lose business due to the high return available.
Trust Capital can assist you with building a private label vendor financing program.
Call Trust Capital at 866-458-4777 to speak with a vendor finance program specialist about How Equipment Vendors Can Offer Unbeatable Financing .