When it’s something you’re not utilizing on a daily basis, the ins and outs of equipment financing can be confusing. But, when you get used to talking about it, can be one of the most effective tools in your sales kit.
Whether you’re helping a customer overcome hesitation or are simply trying to close the deal faster, understanding how to present financing (and respond to objections) can make all the difference.
Here’s a quick guide to help you do just that.
Why offer financing?
| BENEFITS FOR YOU | BENEFITS FOR YOUR CUSTOMERS |
| Fast approvals – close more deals | Affordable, fixed payments |
| Solution for customers on the fence | Accelerated tax benefits |
| Mitigate sticker shock or budget concerns | Conserves operating capital |
| Make upsells and add-ons easier | Speed! Same day documents |
| No chasing customers for payment | Start-ups are welcome |
The 5 key pieces to successfully use financing to close more deals:
- Be strategic about how you present financing. Money is a sensitive subject. Help your customers feel comfortable talking about it by using words like: Opportunity, Growth, Smart, Savings, Benefits, etc.
- Introduce financing early…on every deal. It speeds up the process, gets the customer committed, and helps qualify customers sooner.
- Use financing as a closing tool. Ask, “How are you planning to finance this purchase?”. It keeps you in control of the sales process and provides an on-the-spot solution. Don’t give them the opportunity to go elsewhere.
- Avoid sticker shock by quoting monthly payments. Affordable payments instantly put new equipment within reach and open the door for upsells. Present a monthly payment wherever you can. Our favorite place: equipment quotes. They’re interested enough to want a formal quote, now give them an easy way to take the next step!
- Remind them there’s no costs or obligation to apply. Our application takes just a few minutes, and we’re (really) quick with answers. They’re never required to use our financing option, and except for special cases we only do a soft credit pull.
Here are some common objections we hear, and examples of how to respond:
“We want to avoid interest and financing costs so we’re going to save up before buying.”
“We totally get it. One thing to think about is that cash is a limited asset, and there may be better ways to use it than tying it up in equipment. Keeping cash on hand is smart business. If you’re worried about finance costs, we can explore a larger down payment or shorter terms. There are also some great tax benefits that come with financing.”
“We don’t want to be stuck with an enormous buyout.”
“There are a lot of end-of-term options that don’t include a buyout – whether you’re looking at lease financing or an EFA (Equipment Finance Agreement). Structuring is flexible and we’ll make sure you have terms you’re comfortable with.”
“Our line of credit has a great rate – we might just use that.”
“That’s great! Just keep in mind that LOC rates are subject to change, whereas lease or EFA payments are fixed over your entire term – which makes budgeting a breeze. It’s also nice to keep lines of credit open for unforeseen expenses. Something to think about anyway.”
“Financing takes too much time.”
“Actually, financing with us is fast. Our application takes just a few minutes to complete, and we can often get your equipment financed that very day.”
More hesitations and ways to mitigate them
Final Thought:
Financing doesn’t have to be complicated. With the right approach, it becomes a powerful way to ease your customer’s mind and move toward making a purchase with confidence. Use these tips, lean on our tools, and let’s close more deals together!
