By: Matt Macnamara, Business Development, Univest Capital, Inc.
According to a 2015 study done by the National Small Business Association, 73% of small businesses used financing over the course of 12 months. One area businesses frequently need financing is for equipment. A huge cash outlay for a new machine, vehicle or technological device is often times not in a small business’s budget. Here are a few reasons why it is beneficial to offer financing:
Stay Competitive and Increase Sales. Many equipment suppliers have partnerships with banks and equipment financing companies to help their customers purchase their equipment. In fact, the 2016 Survey of Equipment Finance Activity found that equipment financing grew 12.4% in 2015 (from 2014) — meaning that more businesses signed up for new loans, leases and lines of credit to finance equipment. If you don’t offer financing, your buyers will find another company that does. At Univest Capital, we have found that our vendors have been able to boost their average sales up to 20% by using our customized finance programs.
Foster Customer Relationships. By offering financing to your customers you are able to build a connection by addressing your customers’ financial needs. Financing creates a win-win situation for you and your buyers. A business can work with a finance partner to develop lease terms that best accommodate a customer’s budget. This can help build long-term relationships which can lead to repeat business from your buyers. Working with a finance company, such as Univest Capital, can be like hiring another sales team as they are invested in helping your team close the sale.
Speed Up the Sales Process. Instead of going back and forth with your customer about the price of your equipment, offering a monthly payment option can help accelerate the close of the sale. Working with the right financing partner can also provide access to the latest technology such as electronic signature documents to make closing your sales as quick as possible.
By providing financing you may be able to close more sales, make more money and build better, more prosperous relationships with your customers. Interested in getting started? Call me today at (866)-604-8160 ext. 5022.
Univest Capital is a subsidiary of Univest Bank and Trust Co. an Equal Opportunity Lender.