Top 5 Tips for Incorporating Financing into Your Sales Strategy

Last month, Americorp discussed how you should take a few minutes to ask some questions to understand your customer’s situation. This process helps our sales team determine what financing programs may work best for your customers.

However, we do not live in a perfect world. As a busy salesperson with a monthly/annual sales quota, you may not have the time to ask those questions – or have a prospect/customer with the patience to answer them. Time always will rank as your most valuable commodity during the sales process.

We also understand how you prefer a quicker cash or credit card sale vs. going through a “longer” administrative process for your customer to secure funding through a financing program or alternative funding source (i.e., bank loan, credit line). Financing tends to become the “second” choice when the upfront cash price is eliminated from consideration. So, the question becomes, “How can you best use financing to close a sale with your customer?”

Tips for Selling Financing to Your Customer

  • Lead with a Financing Option: We value your business – our sales team develops competitive programs that make sense to your customers. Americorp has quoting tools designed to generate pricing parameters before talking and negotiating with your customer. You input the total equipment price – Americorp’s sales quote generator provides monthly payment options customized to your program. If the customer balks at your upfront price, you can counter with, “How much can you afford monthly for this equipment?” You already will have a pricing range using our quote calculator – and you may be able to go lower than their budgeted price.
  • Avoid the Word “Lease”: Have you ever heard a word that just makes you cringe when you hear it? Well, the word “lease” has evolved into one of those words businesses don’t like to hear unless the situation involves Section 179 tax benefits or removing obsolete technology from a building closet. Instead, you can lead with a “financing program” with a fixed monthly payment. Most businesses will choose to lease based on the tax benefits, but Americorp has additional programs available (rental, equipment finance agreement, etc.) if the customer balks at using leasing.
  • Offer a “Total” Solution: Does your equipment have additional software or service costs? Based on your industry, these expenses could include: monthly/annual software licenses; maintenance fees; training; installation; disposables, reagents or other consumables in healthcare; monitoring in security systems; toner or usage for copiers/printers; or other equipment/services. Financing allows you to “bundle” all the equipment and service costs into ONE invoice (from Americorp) vs. multiple invoices (from different vendors at different times). You also can leverage Americorp as your financing provider for commonly-used “As A Service” type programs (SaaS, HaaS, RaaS, etc.) currently implemented across most industries.
  • Generate Income Before Making Payments: Americorp also has deferred payment programs where your customer has a specified period (typically up to 90 days) before a financing payment is due. By paying cash, the equipment might not generate a profit for a few months or even a year. With financing, your customer receives and uses the equipment to generate funds before a payment is due, which can be earmarked for the equipment/service payments.
  • Discuss Financing’s Advantages: Americorp has customer-focused flyers that explain why businesses finance equipment, why leasing makes more sense than a loan, and even estimated Section 179 tax benefits from financing equipment. We can provide these sales materials to you to give to a customer – and we can brand with your logo and contact information. You also can visit the ELFA’s customer-focused resource website for additional tools, videos, infographics and information.

At Americorp, our team is redefining how you offer customer financing solutions. Looking for a few ideas to spur more third quarter sales? Contact your Americorp representative today to learn about our flexible financing solutions and in-house marketing resources to promote your financing programs. You also can reach out at sales@americorpusa.com for assistance.