When I started in the equipment financing field, I was overwhelmed with industry jargon and numbers with decimal points (hey I’m a marketing guy after all). One of the first things I discovered was how easy it was to calculate a monthly payment using a “rate factor.”
Rate factors are used as a simple multiplier. If you know the equipment price, you multiply it times the rate factor to get your monthly payment: Equipment Cost X Rate Factor = Monthly Payment.
Rate factors will vary based on equipment type and program needs. Contact your finance partner if you don’t have rate factors readily available. Below is an example.
Rate factors are extremely simply to use. Below are ways to incorporate them into your sales process.
Excel Worksheets and PDFs
- Some Excel and PDF files allow sales reps to input a price and generate monthly payment options. Using resources you already have makes this a low cost solution though the process is still fairly manual and not ideal for mobile devices.
Dedicated Finance Website
- Having a website that includes a payment calculator is fairly easy and relatively inexpensive with the help of a web developer. The website should be accessible to your sales reps, and possibly your end customers. Keep in mind as ecommerce and online selling continues to work its way into new markets, your web strategy may need to change as well.
- If you’re a sales person on the go and want to calculate and send payments from your iPhone or Android, it pays to have a dedicated app. Development costs can be high and you may need a solution to accommodate all mobile device operating systems. For most dealers the best option may be to leverage an app like SnappShot® for their sales team.
Integrated Sales Tool
- The Cadillac of quote tools would be to fully integrate a monthly payment in to your sales quoting and order entry system. The monthly payment option would automatically populate based on what the sales rep entering in the order form, and submits directly to your finance partner for approval. All of this is made even better because it’s housed in your ERP/CRM system.
Call or Email
- Yes! This is still an option, and despite the growing trend of sales enablement, having readily available sales support is becoming exponentially important.
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