Why offer your clients a Finance Option

Do you currently work with a finance partner to offer your clients a finance option ?

Some replies we often get from IT Vendors:-

1. "All our clients are large, blue chip companies, who don't need finance" - Due to the considerable tax benefits associated with leasing (making it cheaper than paying cash), 89% of Times Top 100 companies are now leasing their IT Equipment.

2. "Our clients always pay cash" - Great, but do you actually see their cheque when it comes in ? - Often they are using a finance company without you realising and the delay in you getting the order is actually due to the client trying to source the finance. Also, Do you get the cash the same day you deliver the equipment ? Are you waiting 30 days or more for your money ? Do you have to handle payment and collection issues ?

3. " There's no requirement for finance from our clients as they never ask us for financing" - That's because most companies still don't realise that you can finance software ! Their banks/finance companies will happily finance their cars and machinery, and maybe even their Hardware, but as most lenders won't consider funding software, many companies still don't realise that it can be done.

4. " We offer the manufacturers recommended finance scheme" - So you're a Reseller, selling the same products as your competitors and offering the same finance scheme ? Wouldn't you like another way to differentiate your offering ?

Aside from the obvious benefits to the client (including the tax benefit), you will benefit from:-

* Accelerated ROI - It's easy to demonstrate this through the client paying for the system on a pay as you use scenario
* Shorter Sales Cycle - By bypassing budgetary constraints and offering a monthly option, many FD's are able to sign this off without having to get board approval
* Increased Sales - By simply making the product more affordable, you will win more business and clients will be able to order more product from you
* Increased Profit - Clients are less likely to ask for discounts when offered a monthly payment rather than a large lump sum.
* Faster cash - You will be paid within 24 hours of the client installation


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.

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.