Equipment financing paves the way for small businesses to create jobs and contribute to economic growth, but not every financing solution is the perfect fit for every applicant.
Traditional B2B lenders are tightening loan requirements for the commercial and industrial sector and across the board. Consequently, more and more start-ups, mom-and-pop shops, and mainstreet businesses are left without access to essential capital. Here’s how offering more than one financing solution can unlock this underserved pocket of your customer base and increase your sales by as much as 40%.
8 of 10 U.S. Companies Need Equipment Financing
According to the Equipment Leasing and Finance Association (ELFA), 8 out of 10 U.S. companies rely on equipment financing to acquire the equipment they need to do business. That’s 79% of businesses of all sizes who would otherwise be unable to operate without the assistance of loans, leases, or lines of credit.
In ELFA’s U.S. Economic Outlook Report for 2021, banks tightened lending standards for Commercial and Industrial (C&I) loans in response to the economic downturn and high-risk financial conditions caused by the pandemic. Surveys show that while standards continued to tighten into the final quarter of 2020, the demand for financing also dipped as many businesses battened down the hatches to wait out lockdowns. The climate was likewise unappealing to startups, but an upswing is in effect, and the need for capital remains as businesses get back on their feet.
Clicklease was recently listed as a Most Innovative Emerging Disruptor by Monitor Daily. Monitor explains: “With the objective of disrupting equipment finance, Clicklease built its automated digital payment solution by nurturing vendor relationships and solving traditional financing pain points...innovation is a key principle upon which the company was built.”
Clicklease is committed to innovative solutions to customers' pain points. Chief Commercial Officer Doug Houlahan explains: “We take direct feedback from our partners and iterate until we get it right.”
40% of Customers Are Abandoned by Traditional B2B Lending
As players in the B2B space, present-day conditions have necessitated both ingenuity and adaptability to survive. The ability to embrace emerging trends has proven to be a vital characteristic of businesses that flourish, which is why payment solutions that allow for incremental purchasing have drifted from the B2C market into the world of B2B transactions.
Even before COVID-19 lockdowns, it was already difficult for 40% of your customer base to qualify for working capital loans. Traditional B2B lenders require the following even in the best conditions:
- A FICO score of more than 680
- A minimum loan value of $15k and up
- Minimum time in business (TIB) of 3 or more years
For about 60% of your customer base, the financing solutions you’re currently offering might be sufficient, but what about the missing 40%? New businesses and credit-challenged small businesses also need your products to do business, but if you don’t have a payment solution that works for them, they may leave “empty-handed.”
Adapt to today’s market and supplement your current financing provider with a no-risk payment leasing solution that will provide a new opportunity for these under-supported businesses.
Open the Door to New Business with a Leasing Solution
As a supplemental payment solution that costs vendors nothing to implement, Clicklease doesn’t replace the financing solutions that are already working for you or increase your expenditures. It’s a free bonus leasing option that appeals to the 4 out of 10 buyers who don’t qualify for traditional lending solutions.
How Clicklease scoops up the missing 40% of your customer base:
- Instant approvals at a rate of 68%
- Proprietary algorithm that doesn’t rely on FICO scores so we can approve applicants that lenders can’t
- Breaks equipment costs into affordable, incremental payments
- No TIB requirements (startup friendly)
- No chasing documents or expensive underwriting
Whether you’re losing customers in the showroom or online, Clicklease not only makes the lump sum of your equipment costs more palatable but infinitely more affordable. Stop losing sales and add Clicklease as a leasing solution today. No risk, no fuss. Just sales.
