1. Align with a distributor that provides a wide selection of creative financing solutions. We have strength and stability that resellers can draw from. The most successful resellers develop a purchasing plan with their distributor that allows for a smooth flow of their orders based upon customer purchasing habits, credit strength and their own financial growth. The right financial solutions can solidify the sales process and improve your financial strength.
Also, distributors can help resellers manage their financing so they can focus on being a selling machine. At Arrow, we provide personalised support by integrating our leasing service representatives into the sales organisation and locating them close to you. We can manage your portfolio data and provide periodic reports showing when your customers’ lease deals end, thereby helping you generate more leads.
Once a lead is generated, we can manage the quoting and contracts process for you, saving you hours of work effort. Training and educational sessions to help maximise cash flow are other services typically offered.
2. Manage cash flow to maximise available funds. Managing cash flow is important for resellers right now. It helps manage needs during slow periods and positions you for growth when the market turns. Financing purchases accelerates accounts receivable payments - even small attach-rate increases free up significant cash flow to pay bills and make investments in the business.
3. Give customers managed-expense options. Today, companies are more interested in having predictable expenses that they can forecast. The trend is moving toward operating expenses rather than capital expenses. Operating leases, for instance, provide a pay-as-you-go plan that can be easily managed as environments, technology and financial positions adjust to market conditions.
4. Help customers bridge the gap until reimbursement funds are available. Resellers can accelerate sales by integrating finance options such as operating leases in their sales proposals. This allows you to make payments nominal or even defer them until financial incentives can be realieed—while still providing for the option of ownership at the end of the contract term.
5. Present financing that matches the solution and market. We understand your financial position and propose solutions to meet those needs in terms of cost of capital, return on investment and accounting methods utilised, among others.
6. Build in a return-on-investment or total-cost-of-ownership model into sales proposal tools. Many resellers engage financing in the quote-forecast and close stages but not the proposal stage. Earlier discussions allow the seller to present the metrics and costs along with the profitability potential.
7. Keep the communication flowing. Speak to your partners about what you are trying to achieve and any challenges that you may have. Being fueled by information about what you desire will help us find the right solution for you.
8. Consider leases first. Leases do not typically place covenant requirements on the reseller, and they offer quicker access to funds. In addition, resellers do not typically incur costs related to leases, whereas loans come with interest charges.
9. Be a smart shopper. Captive financing programmes generally offer the best rates and participate in brand buy-downs. Private-label programmes are another option when captive programmes aren’t available or don’t work for a specific deal. Look for programmes that match financing to the solution and work with the financing company to negotiate variations to best meet your needs. Again, distributors can be particularly helpful in assisting in those negotiations.
10. Learn to manage deal margins with financing. The right financing structure creates a competitive edge and ensures deal profitability. The most successful resellers generally integrate financing into their process. Deliver true financing solutions to your customers. Build trust with your customers by offering financing that has no hidden costs or fine-print loopholes.