Flexible Financing Options for Q4

Using financing as a sales tool to help close business in the fourth quarter is much more than just waiting for customers to ask about financing. It’s about understanding your customer’s needs and putting together a solution to address those needs. That’s certainly true when you’re selling the benefits of your equipment and it’s also true when providing a financing solution tailored to meet those needs.

To that end, TEQlease is rolling out a series of customized, flexible financing options designed to help our vendor partners sell more equipment. These are part of our special promotions available through the end of 2017.

These options include:

 

Deferred Payment Plan

This option is perfect for situations where it may take a few months before the equipment is generating revenue for the customer. It gives Vendors the option of making the sale today, getting paid in full today, and allowing the customer to defer payments for as long as 90 days.

Seasonal Payment Plan

This option is designed for customers with fluctuating periods of higher or lower revenue. Think of an ice cream store in Minnesota or a winter coat store in Florida. The customer can designate 3 consecutive months during any 12 month period for reduced (as low as $25.00) monthly payments.

Quarterly, Semi-Annual, Annual Payments

Different companies budget in different fashions. TEQlease has the ability to customize the timing of the payments to fit the client’s budget. For example, a Charter School may receive annual funding. We can create an annual payment option to mirror this. Or a contractor might get paid on a quarterly basis. We can schedule the financing payments accordingly.

Residual Programs

If it helps close a sale, we have the ability to “backload” a transaction and thereby keep the payments especially low. For example, we can defer 10%, 20%, even 30% as an end of term residual payment. As a result, the customer’s monthly payment would go down accordingly.

“Same as Cash”

Need a special program similar to the “5 years, 0% interest” programs you see on TV? Let’s talk! We have experience putting these together for qualified vendor partners.

Which of these programs would be most helpful to you? We’d be happy to discuss how these options can work in your business and help you close more equipment sales faster. Want to learn more? Give me a call (or email) today so we can get started for you. If you’d like schedule a specific time to talk, click here.

“All my customers pay cash”

TEQlease works with equipment vendors across a wide range of industries.  The common denominator across all of these industries is that we make it easier for vendors to sell equipment by making it easier for their customers to buy from them.

Occasionally, we’ll hear a vendor tell us that financing doesn’t apply to them.  “All my customers pay cash”, they say.

Let me be clear, if you have a customer that’s paying cash, take It!  (Of course, there may be an opportunity to up-sell, but that’s a topic for another time.)

But according to recent surveys, nearly 8 out of 10 businesses across the United States use financing to acquire business equipment.  You can review the key findings here.

If all your customers are paying cash, you’re probably leaving money on the table.  According to that report, “The share of cash purchases declined for companies of all sizes from 2011 to 2015″.  (emphasis added)

If your sales aren’t what you’d like them to be, and you’re not offering financing, you might be competing with somebody who is.

Want to learn more?  Give me a call (or email) today so we can get started for you.  If you’d like more information first, click here.

 

Keeping The Entrepreneurial Spirit Alive

A few months ago, we published an article (here) about the value of thinking like a startup.  A few people responded by saying it’s really a matter of thinking like an Entrepreneur.

In a recent article published on the website Elite Daily (here), it describes the necessary attributes and habits that an entrepreneur must have to be successful.  The article shows what entrepreneurs are doing right, but may people say that this applies to all business owners everywhere.  Would you agree? Continue reading “Keeping The Entrepreneurial Spirit Alive”

When To Bring Up Pricing

We work with a wide variety of equipment sellers and distributors.  They sell widely differing types of equipment, to different types of customers and at
different price points.

But there’s one thing that is the same for each of them.  It’s the question of pricing.  How do you bring it up?  When? And what kinds of options do you offer to make the customer’s investment decision an easy one. Continue reading “When To Bring Up Pricing”

Lease Financing Helps Close the Deal

At TEQlease, one of our divisions focuses on technology financing.  In one recent transaction, it was the

Mobile World

financing that helped address the final objections and close the deal.

The transaction in question was for approximately $84,000.  It involved some technology equipment for a local school district.  We had a previous relationship with the school district and were brought in by the equipment vendor who was also a partner of ours.  It was a very competitive situation and our vendor partner had already gone through several rounds of tough negotiations with the school’s budget office.

What finally won the deal for this vendor?  Once we understood the specific budgetary considerations, we were able to put together a financing option that allowed the school district to meet two critical needs: Continue reading “Lease Financing Helps Close the Deal”

Selling B2B: What’s New?

For close to a full century, salespeople have been trained to use some form of what’s called the AIDA” sales model.  AIDA stands for Attention, Interest, Desire, Action.  For most companies who sell business-to-business (B2B) solutions, their sales funnels and sales reporting systems have been built around this or similar models.  The effectiveness of these models is based upon certain assumptions about how buyers buy.

Historically, those assumptions have always been that buyers follow a distinct and linear process when it comes to making buying decisions.  According to research from a leading research and advisory company (here), the current reality of how B2B buyers buy is quite different.  Rather than a linear process, most buyers work through four different, parallel streams any time they make a significant buying decision. Continue reading “Selling B2B: What’s New?”

Using Financing as a Sales Tool

Imagine having a powerful sales tool that helps qualify prospects early in the sales cycle and also makes it harder for them to go to your competition!

Having worked with hundreds of Vendor partners over the years, at TEQlease, we have found that the most successful Vendors use our Lease/Finance options as exactly that type of sales tool.

Vendors who use our Lease/Finance options as a way to qualify opportunities early in the sales cycle have significantly higher closing ratios than Vendors who bring them up at the last minute. Why? Because using the Lease/Finance option as a sales tool means taking the pricing objection off the table early and having better control of the sales cycle by controlling the financing.

Consider the following example. A prospect is considering equipment that costs $100,000. The salesperson presents him with the following options:

  1. One Time Payment $100,000.00
  2. Capital Lease (60 Months) $ 2,027.64*
  3. Operating Lease (60 Months) $ 1,799.32*

By offering these options early in the sales cycle, the Vendor is accomplishing several things. Continue reading “Using Financing as a Sales Tool”

Survey of Equipment Finance Decision Makers

According to a recent survey of decision makers in the Equipment Financing space by Sawbux Marketing (here) the majority of equipment vendors are “regularly” looking for new lending relationships.  And the standards these vendors are requiring continues to increase.

To many financing partners, servicing a vendor used to mean sending out a pad of applications, setting up an 800 number and expecting applications to come rushing in.  Those days are gone!  For a financing source to earn the right to do business with a vendor, it needs to demonstrate the ability to truly add value.  This is much more than asking for applications.  It’s much more than just offering low rates.  (87% viewed banks as low rate sources who were “slow and restrictive”)  It’s about helping vendors sell more products using financing as a tool in sales. Continue reading “Survey of Equipment Finance Decision Makers”

Lease Vs. Bank Financing: Which Makes More Sense for Your Business?

 

For most executives, the first consideration is to evaluate the objective of the transaction. Is it owning the equipment?  Or is it using the equipment that will be the source for the future profits to the business?

“Invest In Assets That Appreciate In Value… Lease or Rent Assets That Depreciate In Value”

“Owning” business assets can be particularly beneficial when those assets appreciate in value; real estate being the prime example.  However, most assets like furniture, fixtures and equipment, only depreciate in value, in most cases fairly rapidly.  When the objective is getting the maximum use out of a depreciating asset, it is that “use” that brings profits to the business, not ownership or the “appreciation” of the asset itself. Maximize the “use”…minimize the investment.

Leasing Makes Business Sense And Tax Sense

Most businesses will write off 100% of their lease expenses.   Continue reading “Lease Vs. Bank Financing: Which Makes More Sense for Your Business?”

School Tech Supply and TEQlease Capital Partner to Provide Lease Financing Solutions

TEQlease Capital, a private equipment lease finance company and School Tech Supply, a Division of Pacific OneSource, Inc., today announced that TEQlease Capital has become the preferred financing resource for School Tech Supply. Through this relationship, TEQlease Capital will provide lease financing solutions for School Tech Supply customers throughout the United States. School Tech Supply is an industry leader providing refurbished PCs and discounted classroom technology to more than 50,000 public and private K-12 schools, colleges and universities across North America. Read the full press release here.