Customer Finance Programs Key to Increasing Sales

While studies show that spending on technology is on the rise again, there's a reason you have not heard a collective sigh of relief from the software industry. While many budgets are once again allow the purchase of enterprise software, hardware and peripherals, there is no doubt that buyers of today are smarter, savvier and more selective than ever.

Even if you have loosened the purse, the competition is at all times. It is no longer enough to offer a software solution that meets the needs of potential clients, or even to offer the best price. Today, smart sellers are constantly looking for ways to stay one step ahead of the competition.

While sales growth is always part of a competitive strategy of companies, software companies often overlook a simple method for achieving this goal - making it easier for customers to buy.

One option growing in popularity among software vendors is to provide a customized financing program that provides hassle free financing solutions for prospective clients. Apart from the "one-stop shopping", customers can reap the other benefits of funding that make it easier for them to commit to technology purchases, including:

Financed by 100 percent - Many finance companies offer finance 100 percent of the cost of software maintenance contract, which does not require prepayment. Because customers do not need to come up with a down payment can make a purchase immediately, rather than hold up the sale with a "wait and see" mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more funds to activities that generate revenue.

Improved management of cash flow - The financing of the software, your customers can save capital to reinvest in their business and improve the accuracy of the budget through fixed monthly payments. Funding also makes it easy for customers to access multi-year budgets to pay for the benefit of your software over its useful life.

Flexible payment structures - Customers can optimize project budgets by taking advantage of flexible payment structures are available through funding to maximize the return on their investment. For example, finance software, customers can ramp up payments to match the revenue generation of a new project is the technology that uses software-funded.

While the funding provides a clear advantage to the buyer when a program is well designed, the list of advantages for software developers, distributors and resellers can be even more beneficial.

Improved Customer Relations

As mentioned above, the financing packages add value for customers, enhancing their purchasing power, providing more flexibility and provide convenience. It also increases customer satisfaction through the leverage of their budget to obtain the total technology solution - which could include software, hardware, service, support, integration and training - and not only parts and pieces could not afford through an outright purchase.

Shorter sales cycles

From the standpoint of sales, any customer who expresses an interest in a product that looks like a good lead. However, there are many times when the question of how to pay for the new software does not allow the sale from happening. Time lost in hopeless values ​​can be eliminated if funding is part of the sale, such as ability to pay directly into account in the equation. Furthermore, many finance companies are now offering fast, easy credit and documentation procedures, so you can complete a sale quickly and avoid costly delays in processing.

Another advantage is that software needs as discussed in the sales process, the finance specialist can work with the chief financial officer or accountant to determine what alternative funding and payment plan best suits the needs of business and cash flow .

Direct financing customer can also save software vendors millions of dollars annually by reducing the number of days the sale is excellent. Consider a company with sales quarter cash $ 50 million. On average, it may take 45 days to collect payment. Suppose the interest rate of 6 percent, 45-day delay in payment results in an exercise cost of $ 371,204. If the same numbers run with a leasing program that generates payment within 2 days, the carrying cost drops $ 82,253, saving the company more than $ 288,951 for the quarter of businesses.

The Big Picture

Overall, the equipment financing programs can:

Create larger, more profitable sales faster;

Increase Account Control;

Improving sales efficiency and productivity;

Lower days sales outstanding;

Improve cash flow;

Differentiating your company from its competition; And

Provides solutions for your customers.