As a commercial equipment seller, you know that differentiation and added value are crucial for success. Having offerings like financing that solve problems and empower your sales teams means customers can purchase the equipment they need, not just what they can afford. But offering a finance program through a strategic partnership isn’t just a powerful tool to enhance existing sales strategies – it also allows you to break into new markets, capture new customers, and grow your business exponentially.

Here’s how over 5,000 businesses and 2,200 equipment sellers are leveraging finance programs to open fresh opportunities and drive growth.

1. Improving Customer Reach and Retention
   According to recent surveys, 39% of equipment buyers delay equipment purchases because of upfront cash concerns. By integrating financing options, equipment sellers can attract a broader range of customers, including those who may not have the capital to pay upfront for the equipment they need. Financing breaks down the economic barriers to entry, making it easier for smaller or newer businesses to acquire essential machinery. This flexibility can expand the seller’s market reach and diversify their customer base.
2. Upselling and Cross-Selling
   Based on research, 66% of equipment sellers that offered a payment option on every quote reported higher revenue and margin per sale. When customers don’t have to worry about upfront costs, they’re more likely to consider higher-end models and additional features that they wouldn’t have otherwise. Plus, the ability to bundle products with service agreements in a finance package can create customer loyalty and grow their lifetime value.
3. Entering New Markets
   Of the 1,422 equipment sellers surveyed that entered a new vertical or geography in 2023, 74% of those reporting sales beyond what they projected had developed a specific finance program to assist with the rollout. With the help of a financing program, equipment sellers can venture into new markets that were previously out of reach due to high entry costs. For instance, high-cost sectors like heavy machinery for mining or construction are more accessible to smaller players with attractive financing options. This strategic move not only diversifies the seller’s portfolio but also stabilizes revenue by tapping into less saturated markets.
4. Accelerating Innovation
   According to the survey data, buyers who financed equipment were 2.6x less likely to cut 2024 CapEx budgets. Financing options can also play a critical role in encouraging customers to adopt innovative technologies. By offering financing solutions, sellers can help customers overcome the high initial costs of cutting-edge equipment and upgrade their systems sooner. This is particularly important in industries like healthcare and technology, where ongoing advancements can quickly make older models obsolete.

Leverage the Full Power of Financing With LEAF

Offering financing isn’t just a buying incentive – it’s a strategic move that can redefine your market and drive bigger sales that close faster. And for commercial equipment sellers, it enables you to support your customers in a way that aligns with their purchasing preferences and today’s economic realities.