Vendor Equipment Financing Tips

Many equipment vendors have now realised that by positioning a finance option to their clients, they are not only making the product easier to sell, but more importantly, it becomes easier to buy.

Here are some further tips that will assist in the process of increasing equipment sales:-

• Include a monthly payment option with every proposal sent out to clients. Don't wait until the client has turned down the capital expenditure.

• Show the client how by paying for the system as they use it, they will see an immediate return on investment.

• Relate the monthly finance amount to monthly savings. Show how the equipment actually pays for itself.

• Reduce the cost to the lowest common denominator. Show the customer what the cost is per user per day.

• Avoid getting involved in a technical leasing discussion. You are there to sell the product. Call your finance partner whilst on site and they will be able to arrange something to fit the customer's needs. This flexibility may be the final piece of the jigsaw to make the sale

• Use the credit application form as a signed order. When they sign this form, in their mind they have bought the equipment.

Mike Boss is the Managing Partner of The Boss Corporation, one of the UK's leading independent provider of IT finance. The Boss Corporation specialize in the provision of IT finance, including Software transactions. They also work with Software Houses and Resellers enabling them to offer a bespoke client financing option.

10 useful points to consider before signing a finance agreement

We have often seen clients coming back to us for funding, having tempted by offers from other companies, which aren't quite all they seem.

Therefore, we have put together a list of 10 basic tips that should always be considered:-

1. When comparing quotes from different lenders, always ensure the payment profile is the same, ie. number of payments paid upfront, as this affects the rate greatly.

2. Always keep a record of when the first and last payments are due to be made.

3. If the agreement is a finance lease, write to the funder / broker one month before the end of the agreement confirming your end of term wishes.

4. With any finance agreement, always ask the lender to confirm the end of term title fees in writing before you sign the agreement. Make sure there are no other "Residual" or "Balloon" payments due by you

5. When comparing rates, compare the total amount of interest payable. Different lenders have different methods to calculate their published rates.

6. Due to the considerable tax benefits, leasing can work out cheaper than paying cash.

7. Always ensure the schedule of equipment matches that of the equipment you are buying.

8. Brokers can save you time and money as they have access to a number of lenders and often can obtain better rates than single customers.

9. Leasing makes it easier to keep pace with technology - Most Leases have built in upgrade paths meaning you are able to keep up with technology, without always increasing your monthly payments.

10. Finally, if a supplier is offering an interest free deal, yet you still want to pay cash, ask for the discount to be given to you instead of the finance company.

Mike Boss is the Managing Partner of The Boss Corporation, one of the UK's leading independent provider of IT finance. The Boss Corporation specialize in the provision of IT finance, including Software transactions. They also work with Software Houses and Resellers enabling them to offer a bespoke client financing option.