Design Financing Around Your Customers’ Price Tag

In the previous two blogs (“Your Prescription for a Customer’s Headache” & “Top 5 Tips for Incorporating Financing into Your Sales Strategy”), Americorp has provided advice on how to incorporate financing into your sales strategy when buyer consternation makes an upfront cash sale impossible based on budget constraints. You also understand the decision maker will want the cheapest price available to acquire your equipment/software and other potential services (i.e. installation, maintenance, training).

This process could involve asking management for a small to large discount on the equipment, which in turn, could affect your products’ market price based on the discount you concede to close the cash sale. Before you head down that road, Americorp’s creative financing solutions could maintain your market pricing without losing the sale.

Your Americorp sales representative has a full arsenal of solutions to align with your sales strategy. A closed sale with financing is the same as a closed cash sale – so we want to provide effective programs tailored toward your customer’s goals for acquiring your equipment. Targeted programs make selling a financing option easier.

Understanding the Flexibility of Financing Equipment

  • Your “Easy” Solutions: When leasing or financing equipment, two factors can adjust your customer’s payment without discounting the equipment’s cost – monthly term and end of lease buyout.
    • Monthly Term: Spreading the financing term over a longer period will lower the payment (i.e., 12 months is higher than 36 or 60 months) and Americorp can accommodate up to 84 months (7 years). We can develop pricing for 12, 24, 36, 48, 60, 72 and 84 months to provide monthly payment options without affecting the overall price tag of your equipment.
    • End of Lease Buyout: Typically, your customers want to own the equipment at lease end, so they select a $1 Buyout financing program geared toward acquisition at term end. Fair Market Value (FMV) Buyout is tailored for technology equipment where the customer has options at term end including buy the equipment, continue financing, or return the equipment. FMV leases will have lower payments than $1 buyout based on those three options and ownership potentially not being the main goal at term end.
  • Your “Middle Ground” Solutions: As a business, you understand that occasionally you need to give a little bit to close the sale. Just like the concessions in a cash sale, Americorp can develop financing programs that have less concessions to your bottom line and are very attractive to your customers.
    • 0% Interest or Low Interest Financing: Who hasn’t seen a 0% Interest or same as cash financing program? Customers enjoy an option where they acquire your equipment without paying any or paying low interest over a shorter term of 12 to 24 months. With a smaller blind discount to the customer, this program usually closes the sale with financing.
    • Step Financing: Your customer pays a specific lower payment for up to 12 months (i.e., 3 months at $99) and then makes standard financing payments for a 36-month or longer term. This program allows your customer to generate revenue with the equipment for that “step” period, which they can earmark for financing payments.
    • Deferred Payments: Would your customer like to acquire your equipment and use it for a specific period before a payment is due? Of course, they would. The 90-Day Deferred program is standard in the industry, but Americorp also has extended this deferral program to longer periods for certain customers.
  • Your “Difficult” Solutions: As a healthcare financing provider for more than 30 years, Americorp has customized programs that fit into a non-traditional situation with multiple pieces of equipment, consumables/disposables, software and other “moving parts” to fit within a tight budget. Our team thrives in these environments and can deliver a competitive solution to help close the sale (i.e., Rent to Own, Bridge to Budget, etc.).

Remember, Americorp can build a customer-focused equipment financing solution using any of the above concepts for a generic sales program for all equipment or build a promotion around a specific piece of equipment. We also create professional promotional materials with your corporate branding customized for your sales team’s use.

Contact your Americorp sales professional directly or email us at sales@americorpusa.com so we can combine our efforts and resources to develop a targeted financing program for your customers.