Not all businesses have the finances to pay for their equipment upfront. If you offer a payment plan to customers, not only can they afford much-needed assets beyond their current means, but you also end up gaining significant benefits. Here’s what you need to know when providing customers with financing options.
Enjoy Advantages When You Offer a Payment Plan to Customers
For manysmall businesses, equipment financing is a crucial service they need to grow and succeed. Whether they lack the funds to obtain necessary machinery or spend money on other investments, the fact remains that turning to financing solutions can be a vital business strategy.
However, there are several advantages to offering B2B consumer financing. For starters, your consumers will appreciate your business more as a result of the flexibility you provide. This enhances your business's image and raises the likelihood of repeat customers and new referrals. In other words, you can increase brand loyalty and conversion rates.
Furthermore, your clients will feel more secure when making large purchases. They gain the ability to purchase what they desire rather than what they can afford.
However, flexible payment options may not immediately result in a significant boost in revenue. Nonetheless, most businesses profit in the long run because they avoid losing out to competitors who offer customers payment plans.
Of course, equipment financing is not for everyone. You need to be careful with presenting your B2B payment solutions because there are certain requirements to meet and financial commitments to fulfill. It wouldn't be good to get your customers’ hopes up only to have them discover that they’re not a good fit for your payment plan.
The good news is that with Clicklease, equipment financing is fast and convenient. Your customers can take advantage of lenient credit requirements and a quick application process. Equipment sellers like you won’t have to worry about turning away customers or offering discounts just to close sales. Your customers can get the technology they need while you boost your revenue.
How Do You Get Equipment Financing?
Every lender has different requirements when it comes to approving payment plans. General qualifications typically include:
Good personal and business credit scores
A business plan
A statement of revenues
A minimum of one year in business
However, Clicklease processes applications of businesses even with low credit. There are no required minimum business and revenue history criteria, allowing more of your customers to expand their business. You can offer a payment plan to customers at rates they can afford.
How Equipment Financing Works
Equipment financing is similar to other financial solutions but particularly deals with business equipment purchases or leases. With this service, you can offer a payment plan to customers to fund their equipment in installments.
Once a business applies and qualifies for the financing option of their choice, they can receive the funds needed for the purchase. Afterward, they will need to pay in installments over a set period. When all their financial obligations are settled, they can then own the equipment.
In contrast to other lending organizations, Clicklease does not impose rigorous requirements or affordability restrictions. As a result, your customers should have no trouble finding a payment plan that fits their budget.
How Long Can You Finance Heavy Equipment?
In most cases, the length of time you can finance equipment is determined by several factors, including the cost of the equipment and its expected depreciation. As a result, the payment period may be as short as one year or as long as seven years.
The same principle more or less applies to heavy equipment financing, but note that there are still fundamental differences. Aside from the basic fact that heavy equipment involves bigger machinery, there are also greater purchasing costs. Farm and construction machinery are two examples of this type of equipment.
Most heavy equipment financing has a term length of five years because the average useful lifespan of heavy machinery is about this long. Remember that equipment financing typically won’t have a term length that exceeds an equipment’s expected lifetime. It’s best to discuss with your customers how heavy equipment can impact their payment plan.
Learn More About How You Can Offer a Payment Plan to Customers
A Clicklease partnership can help you provide businesses with instant access to fast approval and flexible payment solutions. By giving them more options, you can also advance your business growth. Contact Clicklease today to get started.