How to increase sales is a question as old as entrepreneurship! Traditional answers are to acquire new customers, build loyalty, increase product and service price and increase sales volume. In order to boost sales, you need to be inventive and offer stand-out solutions, particularly if you are a B2B player. One possibility is sales financing.
What is sales financing?
Sales financing can be defined as a medium- or long-term financing transaction, paid by the customer, in monthly instalments. Sellers receive the proceeds from their sales immediately through an operating lease company. The latter is reimbursed by the customer's lease payments during the lease term.
Increase sales by offering solutions rather than products
When you offer your products to your customers with this leasing solution, you are not selling a product only. No. You are selling use of the product and related services.
For example, if you manufacture or distribute computer hardware, you do not sell just a simple computer. By leasing the computer, you are selling the use of the computer as well as related services such as repairs, updates, maintenance, etc.
When you offer to lease car fleets to business customers, you are offering vehicles tailored to their business and employees, as well as all related maintenance services. The same applies to medical equipment, which by its nature requires flawless maintenance and repairs.
Your customers may ask to add or replace equipment at any time during the contract. Once the contract ends, they return all the assets and can replace them with state-of-the-art machines. If they had bought their devices in the traditional way, they would have quickly ended up with obsolete machines that no longer met their needs. This flexibility lets you sustain a long-lasting relationship with your customers.
This is how you can offer a solution that makes you stand out from your competitors. And this is the solution that will attract customers that want high-performance equipment, so that they can increase productivity and focus on their core business, without any need to worry about upkeep, maintenance or repairs. You will be able to increase your sales by capturing this type of customer.
Increasing your sales and secure margins with operating leases
Sales financing is an effective way to boost your business and that of your customers. By integrating Olinn solutions into your offers, you can meet different objectives. On the one hand, by enhancing your services, you will attract new customers and thus boost your sales and increase your turnover. On the other hand, you will secure your margins and optimise your cash flow.
With operating leases, you pay the invoice directly to the customer. You therefore will not suffer from any late payments or even unpaid invoices and will secure your cash flow. Your customers, meanwhile, will not have any bad financial surprises because their lease payments are at a level they can afford every month, regardless of any problems they may have with their equipment.
Attract customers who are environmentally aware
By integrating leasing into your commercial strategy, you are also engaging in a virtuous circle, both economically and environmentally. You will become part of the circular economy which, as opposed to the linear economy, aims to limit overproduction and overconsumption. This is likely to convince the growing number of companies that are aware of sustainability issues.
To conclude, sales financing is a win/win solution for both you and your customers. It is a real growth lever that is becoming increasingly popular with companies.
Olinn helps you develop your sales.