Benefits
Having the means to offer flexible, sales aid financing arrangements delivers many benefits, both for you and for your customers.
How your business benefits from a customer sales aid financing programme
Financing can help you increase sales, revenues and customer retention. You’ll be able to secure more deals, accelerate sales cycles, protect and increase your margins, and reduce debtor days. In addition, you’ll be able to overcome cost objections, provide customers with a value added service, and generate more profitable, longer-term relationships. There are four major areas of benefit for you from establishing a sales financing programme:
1. Marketing Enhancement
- Help salespeople to overcome price objections
- Product Differentiation – solution plus finance may differentiate your offering from competitors
- Pricing Differentiation – selling your solution on a ‘pay-as-you-use’ basis, or a ‘revenue-share’ basis can also differentiate your proposal
- Competitive Response – your competitors may already offer leasing or innovative pricing schemes
- Market Penetration – a special financing campaign could be useful when launching new products or prolonging the demand for a mature product
2. Marketing Control
- Account Control – finance is used extensively by vendors with fast-changing technology. For example, leasing allows customers to upgrade and replace products easily with just a simple adjustment in repayments
- Barrier to competitors – if it’s so easy for your customer to keep trading in and trading up with you, your competitors do not get a look-in
- The second-hand market can be controlled
3. Additional Income
- The technique of ‘up-sell’ works well with finance because the removal of a budget constraint allows customers to afford more than they thought
- Maintenance can be included in the financing arrangement, increasing revenues from support activity
- Additional profits can be made from redeployment, export or break-up of returned off-lease equipment
4. Accounting & Administration
- Vendors finance departments can often be under pressure to use in-house resources to finance deals for cash-poor customers, adversely affecting their cash flow and balance sheet strength
- Dealing with problem sales can also take up valuable management time whereas a financing solution can overcome this
Services
Capitas offers a range of flexible, dedicated services which you should find valuable.
Branding
What’s the best way to deliver and promote financing to your customers? Whether you use the Capitas brand or choose to position yourselves as total provider of the financing, our wide range of options will ensure you get the right marketing solution for your business.
Integrated marketing
From volume incentives and customised paperwork to tactical promotions and sales finance sales training, we can provide a wide range of services to help promote the financing programme to both your sales team(s) and customers.
Management data
Expert information analysis is available via Capitas Partner CRM helping you make informed sales decisions to drive sales and revenue performance. Within the secure log in area you may perform Company credit checks, track the progress of your financing proposals, obtain pipeline reports, download marketing resources and diarise using the calendar function.
Service levels
Through effective two-way communication and consultation, we highlight key service priorities and produce a customised partnership and service level agreement. We monitor and report back on our service delivery always requesting feedback to see how we can further improve the delivery and execution of core financial products and services.
Programmes
Capitas specialises in creating sales finance programmes that are expertly tailored to meet the needs of our vendor partners.
To help design a programme that fits your unique requirements whilst providing your customers with flexible and competitive financial solutions, we can offer you a number of arrangements depending on how little or how much you want to commit in time and resources.
Here are some of the ways we can partner you to provide sales finance to your customers:
Referral programme
Working together on a deal-by-deal basis you simply refer deals to us and we manage each request individually, using Capitas documentation. This system is easy to manage and usually you take no further responsibility for the funding arrangement.
Wholesale Funding
Here you retain customer control but then sell the deals on to us, so you can still recognise day one revenues.
Co-branded
Under this arrangement, all financing documentation shows your branding alongside Capitas branding. This underlines the stability and integrity of our relationship - and boosts credibility and customer trust in the financing.
Own-label Referral Programme
Here all customer communications and documentation are branded to position you as the provider of a total customer solution and to reinforce your own brand value. Whether you disclose your relationship with us to customers is entirely up to you. The benefits to you are that your sales-force is armed with a sales finance tool which looks an integral part of its sale proposition.
Joint Venture (JV) with Capitas
Whether it’s a virtual or legal joint venture, you can share in the risks and rewards of your exclusive vendor finance programme, which will look and feel to your customers like your own in-house finance facility. The benefits of this arrangement are that you create the effect of a dedicated finance company without having to commit to the time and expense of company formation. Revenue recognition of sales is not a problem and there are no adverse balance sheet implications for your business.
Vendor Finance Division
The best reasons to promote financing to your clients are the immediate benefits to your own business.
Capitas Finance operates sales financing programmes for respected national and global equipment manufacturers, independent software vendors and suppliers spanning a wide variety of industry segments. These include information technology, automotive, manufacturing, telecoms, services, aviation and more.
Vendors in different vertical markets have very different goals and challenges. Whether you require the arrangement to be structured on a transaction-by-transaction basis or be a fully supported customer finance programme, we have a broad range of options that will suit you and your business. Your options range from simple Referral to Own-label Referral Programme and Joint-Venture (JV) arrangement.
Capitas has a simple but highly effective philosophy in respect of its vendor relationships - listen, respond and deliver.
“For your customers, financing is often simply the best use of their business cash, increasing return on investment and maintaining liquidity. It gets them the solution they need, without having to make financial compromises or worry about product obsolescence. And then there are the tax incentives, the budgeting advantages, and the all-round convenience”.