Are you worried about your business having trouble with cash flow? If so, you may want to consider how selling on finance can help.
If you're in the business of selling equipment to other businesses, it can be a stressful, competitive space. It's difficult, because your results are largely contingent on someone else - you can only make money if your clients have the capital available to spend. If they go through a dry spell, you almost certainly will too, and there isn't much you can do about it.
This presents difficulties not only with making sales from month to month, but also with collecting payments on those sales. Cash flow is a common problem for businesses in Australia, in fact, Business Victoria noted that 80 per cent of Aussie businesses that fail do so because of problems with cash flow.
And if you're an equipment reseller, you're absolutely not immune to that.
How vendor finance can brighten your outlook
Vendor finance can be used to improve your cash flow and mitigate some financial risk. If you partner with a financier (like Classic Funding Group) and sell equipment to customers on finance, you can get paid straight away, rather than having to extend uncertain payment terms to customers.
Once you remove the "sticker shock" your customers feel about your upfront prices with a monthly repayment amount, the entire sales process tends to go more smoothly. As a result, you'll probably be able to increase the average size of the deals you make.
This also means that if your clients do not have the capital to invest in your equipment, you have offered them another way to access the equipment they need, and support your sales pipeline and that precious cashflow.
Get on the fast track to a growing business
If you're eager to see your business expand, vendor finance is a great secret weapon to help make that happen. If you partner with us at Classic Funding Group, you can begin selling your equipment on finance and immediately bring in steady cash.