If your idea of pitching financing to a customer is “Do you want to lease or pay cash?” you might be missing out on bringing even more value to technology buyers who aren’t educated on the full upside. While cash and bank lines are viable options, they can negatively impact a customer’s bottom line, cash flow, and access to credit.
By asking these three impactful, needs-based questions, you will differentiate your offer, eliminate competitors and position yourself to sell more long-term maintenance contracts (read: recurring revenue).
How important is cash or working capital to your business? Why?
Most companies say they use their capital to invest back into the business and help it grow. Even if their growth expectations are modest, they are still going to invest in marketing, headcount and maybe even inventory. If you establish that it is important to them to have working capital, they should finance technology. You have successfully positioned a lease or rental program.
What are your growth expectations over the next three to five years?
If your customer is growing, you can provide leasing recommendations that scale with their plans. Leasing also frees up their operating cash for growth. You can also help mitigate financial risk with your structured maintenance program.
How would your company be impacted if your system were down for a day? What would it cost you?
Most companies rely on technology to keep their business running. Even a temporary loss of functioning technology would be costly. The prospect of down time is a strong way to position the cost of a new system today against potential loss. It also presents the importance of long-term maintenance contracts that protect the customer.
These three questions will get you off on the right foot when offering a monthly payment structure for equipment and service. Download the full list of 13 Questions to Differentiate Your Sale & Position Financing.
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- recurring revenue