In the new normal customers and businesses a-like will change their way of purchasing and operating. There will be an expected spike in safety equipment being purchased, change in payment methods, moving to more digital formats and demand will soar as certain industries re-open.
However with the commercial impact of many businesses being forced to close down, or demand tumbling during lock down, customers will need a broader range of options when looking to purchase new equipment to stay competitive and handle demand.
How can this be achieved whilst capital is tight?
Suppliers can consider making life easier in hard times through asset finance, and cast your net with a wider sales angle!
Asset finance (or equipment leasing) can be for almost any business and is an incredibly effective way of allowing a business to hold on to its cash while investing in business equipment for the future.
Leasing benefits for your customer
Leasing equipment through financing enables your customers to have the option to invest when capital is tight. Your customer can acquire a solution they need, rather than make-do because of budget constraints and the unfavourable climate we find ourselves in during covid-19.
To summarise a few key benefits for your customer:
- Keeps cash in their business!
- Offers budget control, with fixed payments through the life of the agreement.
- Helps to futureproof technology and removes burden of disposing of outdated technology as this is managed by the supplier via a leasing upgrade/refresh.
So, how does leasing work?
As an example of how leasing works, an office wishes to invest in a better IT system so colleagues can continue to work from home.
With a 3 year finance agreement:
COST of the new IT System - £10,000
36 monthly payments - £327.40 + VAT
Interest you pay over term - £1,786.40
Total Payments - £11,786.40
Tax relief at 19% (£11,786.40 * 19%) - £2,239.61
The tax relief amount returned is more than the interest you pay over the term! *
Interested in becoming a GRENKE reseller today? Find out more.
We consider a very broad range of equipment (including but not limited to): IT Hardware, Software, Copiers, Printers, Telecoms, Medical Equipment, Coffee Machines, Vending Machines, Vehicle Telemetry, Commercial Catering Equipment, White Goods, EPOS - and much, much more.
It may be possible to lease other items – simply talk to your local GRENKE contact.
*This is indicative only and you should be checked with an accountant.