3 perks of selling equipment on a payment plan
Would you ever consider giving an employee 5 years worth of advanced wages? Purchasing equipment outright is a bit like handing over year's worth of wages upfront.
The business coughs up the money and bears the cash flow burden, also taking on the risk that the resource will still suit their business in 5 years time. Financing equipment is like paying an employee on a monthly basis – much more conventional.
The cost is spread over a realistic period of time, ensuring accounts are not drained, and allowing for flexibility in case resourcing requirements change.
Furthermore, offering your equipment on a payment plan has perks for both your customers and your business:
1. Instant gratification
Your customers acquire the equipment immediately without having to organise chunky upfront payments. They can start benefiting from the equipment straight away, so that they equipment effectively pays for itself. The perk for you is that you close the sale faster.
2. Cashflow friendly
Spreading the cost of the equipment over 2, 3, 4 or 5 years makes the monthly payments more affordable. Moreover, on an Operating Lease these payments may be 100 per cent tax deductible, whilst on a Secured Loan the asset may be able to be depreciated*, giving your SME customers flexible cost-effective options. The perk for you is that you get paid straight away, improving your cash flow also.
Technology is always changing and equipment is improving with these advancements. When your customers lease the equipment, they have the option to upgrade at any time. If their business grows rapidly or their needs change, they can add additional equipment to their payment plan. If you offer a service and maintenance plan, this too can be included in the customer's payment plan, ensuring that the equipment continues to run smoothly for a better customer experience. The perk for you is that the customer is more likely to come back to you for their future equipment needs.
Partnering with an experienced equipment lender like Classic Funding Group provides you with the ability to provide a one-stop solution, to create win-win situations for you and your customers.
Sound appealing? We think so too. To learn more about the benefits of selling your equipment on a payment plan get in touch today – 1300 780 895.