Offer A Vendor Equipment Leasing Program To Enhance Sales And Profits
Keywords: equipment leasing, business equipment leasing, commercial equipment leasing, leasing
Vendors who offer a properly structured equipment leasing program are giving the customer a viable financing option. In addition,they are taking a major step to increase sales, market share, and profits. Yet it’s surprising how many companies will not provide a leasing program. Some say it’s because their customers have their own sources. Others say their customers pay cash. This mindset can be costly in a variety of ways. The biggest problem is that it can drive the customer to the arms of your competition. Customers can view the vendor as a one-stop shop where they can both fulfill their orders and get the financing they need, rather than having to seek financing from a bank or other financial institution.
Some equipment suppliers do offer a leasing program, but give the customer a choice between several leasing companies for them to use. That may sound practical, but shopping deals with a multitude of leasing companies can actually lower the chance of approval. If the customer chooses one of the leasing companies, and is subsequently declined, two negative actions may result. First, the credit inquiry lowers the customer’s credit score. Second, it will be clear this is a shopped transaction, and will make it more difficult to get the credit approved. If it is approved, the lower credit score will cause the rate to be higher.
Establishing a sound relationship with one reputable leasing company is the best course of action for both vendors and customers for several reasons:
1. The relationship (allowing one leasing company to be involved) should result in lower rates for your customers, thereby making it more attractive to buy from you. If a vendor uses multiple companies and shops deals, they will not usually get the best rates.
2. Using one leasing company results in better pricing because of increased volume. Leasing companies make more money when deals come through referrals, rather than expensive marketing. The referral business is more profitable because it provides a steady stream of deals from clients who are looking to acquire equipment now and need financing.
3. Because maintaining the relationship with the equipment supplier is critical to profitability, they will do everything in their power to keep the approval rate high and the lease rates low. These savings are passed on to the client.
4. The leasing company will also be more motivated and go the extra mile to fund the most challenging credits.
5. Because of economies of scale involved with large volume directed to the leasing company, the supplier is often entitled to referral fees of 1% to 2%, thus providing an additional income stream.
Utilizing credit control allows the vendor to maximize approvals while getting the best possible rates for clients. Leasing companies often spend a lot of money on marketing to increase their sales volume. With a vendor leasing program in place, the leasing company receives a steady flow of very similar clients who are seeking equipment now, and need financing. Since no additional marketing funds were incurred to get those clients,leasing companies pass on the savings by virtue of favorable pricing. Thus,the company’s customers benefit by enjoying lower financing costs as a result of its direct relationship with the leasing company.
Providing a lease option for your customers has tremendous advantages to everyone involved. Both the leasing company and equipment supplier will likely enjoy increased profits and the customer can acquire much needed equipment without a large down payment. Another advantage to the customer is that leasing allows them to easily upgrade their equipment package to a state-of-the-art level.
To set up a vendor leasing program, the financing company will typically expect the company to be in business for at least a year. It will review the stability of the business and its customers. Leasing is usually easier to obtain than bank loans or letters of credit, even though there is a determination of risk to the finance company.
Kent Harlan has been a CPA since 1984 and is the owner of Ozarks Capital Funding, a Missouri-based company offering financing in the areas of accounts receivable factoring, equipment leasing, asset based lending, and financing for healthcare providers.
ocflink.com
Previous Articles Highlighter:
Mutual Funds Make Investing Simple (1)
A mutual fund is really an investment company in and of itself, with a manager and other officers who administer it. When you buy shares, you are buying a portion of the holdings of the fund, which contains many different stocks and bonds within the portfolio.
Get The Best Debt Relief From A Free Debt Consolidation Program (2)
Otherwise in your current situation bankruptcy is not far. Facts That Can Bring A Difference Generally it is the nonprofit companies that provide a free debt consolidation program. They study your condition thoroughly before giving advice on consolidating loans.
Student Loan Default - Avoid It With These Easy Steps (3)
In any situation where a student loan default is looming, the very first step must be to contact your lender upfront. They will be far easier to work with, if they know them what's going on, particularly when you go to them with some sort of plan, or options, to get back on track.
Establishing Credit Though Student Credit Cards (4)
Although student credit cards come with certain limitations and restrictions, for the most part they can be used similar to more traditional cards. Many banks and companies which offer student credit cards require the student to have a co-signer as their form of collateral or insurance.
Put Your Agent To The Test (5)
A "Stewardship" Selling Agent: Advises and Consults Educates and Directs Uses Judgment and Experience Is Irreplaceable Is Highly Compensated Focuses on the Client's Values and Needs The Typical Agent: Is merely an Information Source Tells and Sells Stays away from Guiding the Client Follows the Rules and Procedures Is Replaceable by any other Agent Is looking to make a "One Time" Sale Focuses on the Agent Once you are able to assess which areas your Agent satisfies, you will be able to clearly determine whether you are working with a Champion Agent!
House Price Growth 'Slowing' (6)
Commenting on the figures, Fionnuala Earley, Nationwide chief economist, said: "As per the first quarter of 2007, Northern Ireland and London led the market during April-June, with annual price growth reaching 54 and 15.7 per cent respectively." However, she added: "Even London and Northern Ireland - the two most buoyant regional markets - saw the quarterly pace of house price inflation slow." Meanwhile, the north-west was said to have seen the lowest growth during the three-month period with prices rising by 5.8 per cent.
Britons 'Get Carried Away' With Holiday Spending (7)
According to research conducted by Alliance & Leicester, 4.2 million consumers - about one in ten - are willing to go abroad even though they are yet to finish paying off money owed from their previous break.
Insuring Yourself In A Changing Economy (8)
This stripped down version generally offers coverage for routine and preventive services with little to no co-payments. Medical visits may be limited to four to five annually, and benefits may be capped at as little as $2,000 a year.
The High Deductible Health Plan - What Is It And How Does It Benefit Me? (9)
Depending on the HDHP you purchase, you may have the choice of using in-network and out-of-network providers. Using in-network providers will save you money. With the exception of preventive care, you must meet the annual deductible before the plan pays benefits.
Medical Bankruptcies The Growing Reality (10)
Keywords: precedent, health insurance, affordable health insurance texas, health insurance dallas, texas, health Catastrophic illnesses are claimed to have triggered approximately half of all personal bankruptcies in the United States. According to recent findings from a Harvard University study, most people who go bankrupt because of medical problems also have health insurance.
'Marked Growth' In High Loan To Value Mortgage Uptake (11)
"The growth in high loan to value mortgages and interest only loans are a warning to borrowers who are overstretching and they should consider what they will lose from their pay packets, which are not increasing at the same pace as house prices and mortgage repayments," he said.
Stopping Smoking And Summer Budgeting 'Could Ease Finances' (12)
According to the financial services company a couple who stop their 20 cigarettes-a-day habit could save themselves up to 2,576 pounds over the course of a year, a figure which could well help many with meeting various expenses when moving home such as property deposits, secured loan repayments and moving fees.
UK Has 'Higher Than Average Inflation' (13)
According to retailers the recent rise in British food prices has been due to increased costs from farmers as a result of poor harvests. Meanwhile, hikes by utility providers were attributed to the rising prices in the wholesale oil and gas markets.
Newer Articles Highlighter:
What Is High Risk Home Owner Insurance? (1)
This is something that can be improved over time by improving your credit score. This is the one thing that a home owner has complete control over. While high risk homeowner insurance will undoubtedly cost more then regular insurance it is important that you purchase insurance to protect your home and family against unforeseen damage that may occur.
Borrowing Should Be 'Structured In Best Way Possible' (2)
Since the MPC voted to increase the base rate to 5.75 per cent, Peter Griffiths, chief executive of Principality Building Society, claimed that homeowners in Wales are among those set to be the most adversely affected.
Student Loans Also Known As PLUS Loans (3)
These are also known as PLUS loans. These loans have a much higher limit. This helps in meeting any gap in the education cost but the payments start immediately as there is no grace period.
Real Estate Financing - What You Need To Know About Home Mortgages Before You Commit (4)
15-year mortgages are an ideal option if you think you can handle the higher monthly payments and if you'd like to have the loan paid off in a shorter period of time, for example, if you plan to retire.
Getting Engaged? How Should You Handle Health Insurance? (5)
Look for high-quality individual health insurance at affordable rates, specifically created for young, healthy individuals. Pat Carpenter writes for Precedent Insurance Company. Precedent puts a new spin on health insurance.
7 Cash Flow Steps To A Healthy Budget (6)
All a budget does is track where the money is flowing from and where it is flowing to. Cash flow; it's what makes the world go around. Here are 7 steps you can use to plan your cash flow and before you know it you'll have built a budget.
Considering Health Savings Accounts (7)
Any high-deductible health insurance policy can qualify, as long as it meets the IRS requirements. The deductible must be at least $1,050 for individuals or $2,100 for families, and the annual out-of-pocket expenses cannot exceed $5,250 for an individual or $10,500 for a family.
Eight Ways To Save Money On Gas (8)
A simple Internet search can help you locate the cheapest local options before you even leave your house. 5. Look after your tires. High resistance tires and under inflated tires make your driving less efficient.
Business Finance Resource Availability Issues For Telecommunications Companies (9)
Asset based solutions can be a bit easier to find, and cheaper than trying to do a receivables factor. A third alternative to explore is the idea of an investment capital cash infusion.
Is Your Identity Stolen? - What You Should Do (10)
Follow it up with a written report sent through registered mail. The letter must state that you dispute such charges due to their fraudulent nature. Request that these fraudulent debts be resolved and that the account be closed.
The Importance Of Having Umbrella Insurance (11)
Or, if that pedestrian then decides to sue you for negligence and seeks punitive damages, your umbrella can be utilized to cover your legal expenses and to pay any judgements levied against you.
How To Pick A Good Home Owner Insurance Company (12)
Apart from learning about average rates and consumer complaints made against the companies you are considering; it is also a good idea to look into their financial stability history. The insurance business is regulated by individual state laws which can be different from state to state.
Your Credit Report And Credit Score (13)
Your creditors and lenders actually provide such bureaus with information about your accounts like account status, credit limit, status of monthly payment, account balance and other information necessary to identify your credit worth.
The Personal Financial Budget Is The Door To Financial Freedom (14)
With a budget in place you can quickly identify those areas where you are spending to much money and those areas that maybe you need to redirect money to, such as credit card debt, car loans, or even retirement savings.
What Is A Mortgage Refinance? (15)
Keywords: a mortgage refinance, mortgage refinance, mortgage refinancing, home refinancing A mortgage refinance involves renegotiating an existing mortgage in order to get a better interest rate and lower monthly payments that will help improve your financial situation.
Understanding Virtual Banking (16)
ING and HSBC are good examples of virtual banks. ING started its operations in Europe and is now established in North America. It is able to offer customers no account fees savings accounts at a higher rate than regular banks, there is no charge either for withdrawals at certain levels.
When To Refinance Your Home Mortgage (17)
In most cases, a lower interest rate is a good reason to refinance a home especially when the home is still quite new, for example the homeowners have been paying on it for only a few years.
Do You Know Why You Want To Become A Trader Online? (18)
Don't be afraid to write your thoughts in detail. When you are thinking of investing even a small amount of money, those who don't do the proper preparation and research are the ones who lose their money.
Buying Home Owners Insurance Online (19)
Keywords: home owners insurance online, homeowners insurance, home insurance quote If you are looking to buy your home owners insurance online then is advisable to research and compare at least 4 quotes that can be had from competing insurance companies.
Understanding Your Annual Percentage Rate (APR) (20)
All lenders are required under the Consumer Credit Protection Act to disclose the effective APR as well as the total finance charge in dollars. This helps the consumer figure out the impact that additional loan fees, such as application fees, have on the total cost of the loan to the consumer.
Foreclosed Homes List- An Important Tool (21)
.. Insufficient detail: There are many lists that merely state the location and rate of the property without any significant amount of information regarding the features of the property.
Foreclosed Home Listing- An Insight Into Foreclosed Home Listings (22)
It is fairly easy to get into a foreclosure home listing as the bank will be usually working with you because one day without sale is like money lost for them.
Foreclosed Home- Discover The Truth About Foreclosed Homes (23)
Foreclosed homes can prove to be of good value for the right person who is willing to consider all the options available. If you are a buyer of foreclosed homes, keep in mind that these houses are not necessarily vacant.
Consumers Determined To Buy First Home (24)
This same proportion of first-time buyers was also reported to be in debt - a rise from the 49 per cent noted during last year's study. Figures from the financial services firm also indicated that 17 per cent of respondents owe more than 15,000 pounds.
Buy Foreclosed Homes- Be An Informed Buyer (25)
Foreclosed homes are mostly sold 'as is', therefore, ensure that you know the condition of the house before bidding. .. Make sure the house is in your price range.
Are You Paying Too Much For Your Loan Insurance? (26)
However, if you shop around and know exactly what you need to be covered for, you can find insurance that will cover you in the event that you cannot keep up with your loan repayments.
Banking Alternatives: Do You Need A Bank? (27)
Credit unions can be fairly large and organisations, and some offer similar levels of convenience to a regular bank. If you are looking for cheaper fees and better interest rates on savings then a credit union might be right for you.
Permalink to Offer A Vendor Equipment Leasing Program To Enhance Sales And Profits