Customers may be excited about upgrading their IT infrastructure initially, but when they see the price tag, their enthusiasm falters. “It’s just not in the budget right now,” they say, promising to revisit the idea in the months ahead.
For an IT equipment supplier, it can be frustrating to watch deals slip through your fingers due to long decision-making cycles and budget restraints. However, there is a way you can address these issues, speeding up sales cycles and helping your customers gain access to state-of-the-art equipment.
IT equipment financing can be utilised as an effective sales strategy that allows you to offer customers a manageable way to invest in the technology they need without the shock of a large payment. In this blog, we’ll explore how IT equipment financing options can solve these common sales hurdles.
IT equipment financing is a flexible payment solution that allows customers to acquire the technology they need without paying the full cost up front. It typically takes two forms :
Leasing customers pay to use the equipment for a set period. At the end of the lease, they can return it, upgrade to newer models, or even buy the equipment outright if the option is available.
Hire purchase Customers spread the cost over time, and once all payments are made, the equipment becomes theirs to own. For IT suppliers, financing isn’t just a tool to help customers; it’s a valuable strategy that can transform your business.
Close deals faster
When customers can spread payments over manageable instalments, budget concerns are less likely to stall the sale. Financing removes a common barrier, making it easier for you to finalise deals quickly.
Increase deal sizes
Offering financing can encourage customers to invest in higher-end or additional products, knowing they won’t face an immediate financial strain. This means bigger deals and better revenue for you.
Build long-term connections
When customers know they can rely on you for affordable solutions, they’re more likely to return for future needs, turning a one-time sale into ongoing business.
Stay ahead of technological change
Technology evolves rapidly, which means owning equipment can be a burden for your customers. Leasing allows them to upgrade to newer systems when needed, ensuring they always have access to the latest technology without being stuck with outdated tools.
Having a customer walk away from a sale because they couldn't manage the upfront cost is a familiar scenario for most equipment suppliers. Offering financing options can help turn this around, providing benefits to both you and your customers.
Here are the three key business benefits of offering IT equipment financing options:
Boost sales and deal sizes
Many customers hesitate when faced with a hefty price tag, even if they're interested in your product. Financing removes this hurdle by allowing customers to spread the cost over time. This doesn't just make high-value purchases more accessible; it can also lead to increased sales and larger deal sizes. Suddenly, that top-tier package or additional upgrade feels achievable, opening the door to more revenue for your business.
Enhance customer satisfaction
Every customer’s financial situation is unique, and a one-size-fits-all approach rarely works. Financing offers flexibility, letting customers choose payment terms that suit their budget. By providing tailored solutions, you show customers you understand their needs, leaving them more satisfied with their experience - and more likely to recommend your business.
Build retention and loyalty
Financing isn’t just about closing the initial deal. It’s about creating long-term connections. When you help customers afford the technology they need, they’re more likely to return when it’s time to upgrade or expand their systems. When technology is constantly advancing and staying competitive means frequent updates, this is especially valuable. Offering financial solutions that ease these transitions keeps customers coming back, strengthening loyalty and increasing repeat business.
How can you set yourself apart and attract more customers in a competitive market? Offering financing options may be the key. Beyond being a tool for closing deals, it positions you as an innovative supplier who makes IT equipment more accessible through a smoother sales process.
Here’s how financing can help you stay ahead:
Makes high-value equipment affordable for all
Not every business has the budget for large upfront investments in IT infrastructure, but that doesn’t mean they don’t need the latest technology. Financing allows you to cater to businesses of all sizes by breaking down cost barriers. Whether your customer is a small startup or a growing enterprise, financing makes your solutions attainable and positions you as the supplier they trust.
Speeds up sales cycles
Budget constraints and cost concerns are some of the biggest barriers to closing deals. Financing clears the path by offering a manageable way to pay. Without a substantial upfront cost, customers can commit faster, helping you move from discussion to deal closure in no time.
Common concerns when offering finance options
Introducing financing might seem daunting at first, but with the right partner, it can be a smooth process. One of the most significant concerns for suppliers is credit risk. If customers default on payments, it could result in financial strain and loss of revenue.
However, when you partner with a financial provider, they assume responsibility for assessing and managing the credit risk, protecting your business from defaults. Similarly, some suppliers may have worries about the added complexity of offering financing options, fearing it may complicate their sale processes or require additional resources.
At Shire Leasing, we offer a straightforward and efficient system that integrates easily with your existing operation. From our dedicated account management team, who will guide you through setting up financing plans, to our in-house underwriting, which ensures fast approval processes, our streamlined approach allows you to focus on closing sales while leaving the complexities of financing to us.
Ready to learn more about how Shire Leasing can provide effective financing solutions that help accelerate your equipment sales and business growth?
Don't hesitate to contact a member of our expert team today.