Most commercial customers who understand the time value of money will not spend the upfront cash to purchase your equipment – especially if acquiring technology-based equipment with a life cycle shorter than five years. For equipment with longer lifecycles (machine tools, etc.), some companies know the equipment will last 10+ years but want to spread the payments over a longer time period (3 to 5 years) to budget annually for the cost.
If your customer isn’t paying cash (almost 80% are financing equipment), then you need an in-house financing program when your buyer’s upfront cost consternation occurs viewing the price tag. When the prospective or current customer says “Sorry, I can’t afford that equipment,” what does your sales team do to counter that objection?
You also should consider what happens if your customer needs to use outside financing (bank loan, credit line, etc.). What happens if they walk out the door or have to get back to your sales team member? Once the prospect/customer leaves the “sales cycle” – whether walking out your door or hanging up the phone – how often do they come back?
That’s why you should consider an in-house financing program from Americorp Financial. By having equipment financing available for your sales team, your representatives (or dealer network) can provide a viable financing quotation to fit within your customer’s budget. Our sales quoting tool allows you to generate monthly payments for the equipment upfront or on-demand to eliminate the upfront cost constraints and close your sale with our financing program.
Americorp believes in simplifying the financing process. We’ve developed an efficient flow, which only requires a single page credit application which your customer can complete electronically or handwritten. Based on the transaction amount, our credit team will review the customer, do our best to get him or her approved, and then handle the rest of the administrative work. Most transactions are approved within a few hours or less! After we receive the financing documentation from the customer, we fund your deal and you complete the sale just like a cash transaction.
If the above process seems like a lot of work, your customer would go through the same process for a bank loan or other form of financing or credit. For a loan, the approval process may take weeks plus your customer might have to put 20% down and leverage their other assets as collateral. The financed equipment serves as the collateral for the transaction and Americorp typically does not require a down payment in advance.
Our team also will work with your sales staff to determine ways to improve the application process including online applications, pre-screening customers for financing, and other methodologies aimed at fast turnaround. Contact Americorp today to see some of our tools and receive our 5 Steps to Financing flyer!