The UK economy grew just 0.2% in July, according to the Office for National Statistics – a bounce back one leading KPMG economist called ‘feeble’.
In the face of these challenges, businesses will be looking to the bottom line and how they can protect it. And as banks close ranks on issuing credit to Small and Medium Enterprises (SMEs) in favour of larger corporations, the importance of leasing, and asset financing partners, to keep businesses agile and resilient grows.
Any sales team worth its salt will be looking for ways to help potential clients manage costs in times like these – ultimately, this will be the difference between hitting or missing a target. So, what are three ways asset financing can support your sales team during a cost-of-living crisis and a recession?
1. Supporting your prospects with their cash flow
They say that cash is King – and this rings doubly true during a recession. Your customers will be facing difficult decisions about where to inject cash flow and where to cut to save for a rainy day.
In a highly competitive environment, any point of difference you can offer people to help alleviate these pressures could be the difference between making or losing a sale. With large and expensive items such as manufacturing equipment or irrigation technology, many customers will be looking for leasing or financing options to spread the cost of their purchase.
Not only could this close the sale but it could also help you to build better relationships with prospects – allowing you to react to their concerns with a solution that suits both parties.
2. The chance to upsell
A customer with a fixed lump sum budget might already have a certain product in mind. But as a salesperson, it’s not necessarily about the budget but the best solution for the problem.
This is where leasing comes in. As costs can be spread over a period of time, your team can focus on selling the solution that is right for the customer, safe in the knowledge that, should you need to navigate budget concerns, you can offer asset financing as another way to pay – so a customer can purchase the item at a higher spec than their budget might have allowed with a cash purchase.
And when it comes to offering the best solution, your chances of securing a sale will be higher if you can offer the latest cutting-edge technology in a way that works with your customer’s budget.
3. Asset financing won’t affect your end of the deal
Asset financing means your business will still get its lump sum payment. Working with a financing partner means that your customers get the benefits of a secure financial agreement, and your business is protected by partnering with an established financial partner who can maintain the agreement on your behalf. With a leasing agreement in place you receive the full sum from the lender, who are repaid by the customer.
The softer touch in a time of crisis
These are difficult times for a lot of businesses and employees – perhaps your own included. The ability to spread costs over time isn’t just practical, but can have psychological benefits, too. In times of crisis, big, unwieldy lump costs can feel overwhelming and a big commitment. The risk is that you lose a customer before they’ve even had the chance to become a customer.
By offering your product on a leased basis, you can help circle around this concern, potentially breaking down any resistance in the process. Whether or not a customer chooses to lease your product, the ability to offer variety is a point of difference.
And in a competitive sales environment, your team can use all the support they can get to get deals over the line.