Should I offer my customers financing?

posted in: Distribution, Financing | 0

As a salesperson, you have probably asked yourself more than once: “Should I offer my customers financing?” Especially if you sell expensive products, the question comes up again and again. As a rule, your customers will not pay cash for them and may even have to take out a loan. Both options can delay the sale. Find out here how financing for your customers can speed up the sales process and increase turnover.

Why does it make sense to offer customers financing?

There are several reasons for offering customers financing. Financing is particularly useful if you sell large or expensive products to business customers, for example with a value of between 2,000 and 75,000 euros.

Offer different payment options

On the one hand, it always makes sense to offer buyers the widest possible choice of payment methods so that the sale does not fail due to a lack of payment options. This includes financing, for example leasing, as well as the option of paying by credit card, EC card or invoice.

Lowering the purchase threshold

On the other hand, many customers would perhaps like to buy your product, but the high total price makes them sweat. They may then tell you that they need to speak to their bank first to see if the purchase is even possible. You will therefore not be able to close the sale immediately and may not even be able to close it at all. However, if you offer your customer direct financing at this moment, regardless of the customer’s bank, the situation is completely different. The customer can buy the product immediately and generally has a positive experience with you that will keep them coming back.

Increase sales through up- and cross-selling

But it gets even better, because your customers do not necessarily have to experience the daunting total price of the product through financing. You can simply offer them manageable monthly installments. This makes the expensive product suddenly affordable and lowers your customer’s purchase threshold. What’s more, you can even sell other products by upselling or cross-selling, which you can simply include in the monthly rate. This allows you to sell more and increase your turnover.

Secure revenue for you

The security you gain when you offer your customers financing should also not be underestimated. If you sell a product via sales financing, for example, you don’t have to worry about whether or not the customer will pay their invoice in the end. This saves you writing reminders and sleepless nights. Your financing partner will transfer the money to your account immediately after the sale has been completed. He also ensures that the customer pays the monthly installments. You have nothing to do with it and can simply look forward to secure proceeds.

Further advantages of financing

Financing, for example in the form of leasing, offers many other advantages, not only for you, but also for your customers. These advantages for buyers are unbeatable sales arguments that will help you sell even more. Read all about the advantages of leasing here.

How do I offer customers financing?

It all sounds great, but you think it’s incredibly complicated to find a bank that will support you in your project? Maybe you’re right. Searching for a suitable financing partner yourself is often tedious. And if you don’t know the financing sector, you won’t feel confident when negotiating with the bank. So let a financing broker take care of this for you.

The financing broker will find the right financing partner for you. The broker can often get better conditions for you than you can yourself. This is because they usually have years of experience in the financing sector and therefore many contacts in the form of banks and financing partners. The broker has already agreed a number of framework conditions with these partners and therefore knows which customers are eligible for a financing partner. From his broad repertoire, he can therefore approach only those financing partners that are suitable for you and negotiate the finer details with them. In the end, of course, he concludes the best deal for you and you can get started immediately and offer your customers financing.

It’s so easy to offer your customers financing

This is how easy and effective it is to sell using this payment method. If you would like to find out more or have specific questions about sales financing or leasing, please contact us and we will be happy to advise you personally and without obligation.