Want to get to a quicker yes with your prospects? Here are a couple of important points to stress the benefits of equipment financing, a couple of objection handlers, and a reminder about the importance of sharing success stories.
1. The Right Fit for Your Prospect’s Needs. Let your prospects know upfront that they can acquire the equipment that best suits their needs rather than having to settle for what they think they can afford. On the other hand, while some purchasers are prepared to pay for equipment, they may not have factored in the costs of delivery, installation, and maintenance, to mention a few. These soft costs could result in some serious sticker shock for your prospect.
Moreover, these costs can represent a significant percentage of the total cost of acquiring equipment, and some lenders may have little appetite to include them in the financing. In most cases, specialized lenders can fold them into the overall cost of the financing. Knowing this can tip the scales in your favor.
2. To Everything Its Season. If your prospect’s business experiences peaks and valleys in terms of cashflow, offer a seasonal payment structure. It’s likely to be an attractive alternative to paying a fixed amount each month. These structures help to manage cashflows and avoid the need to access working capital lines during slower periods.
Another option is to defer payments to be timed with increased cashflow needs or to change monthly payments to a quarterly, semiannual, or annual basis. Maybe a step payment financing option is a better fit since it offers lower payments at the beginning. With this option, payments gradually increase over time to sync up to the prospect’s projected revenues.
Issues like soft costs and repayment schedules can be as important as any other factor when a prospect is considering an equipment acquisition. Be prepared to offer the options and flexibility that best accommodate the realities of your prospect’s cashflow.
You’re presenting your deal, and you’re confident things are going well. And then it comes: the dreaded objection. With any luck, your prospect will express her or his concerns directly. Things like, “Okay, what’s the bottom line here? How much is this going to cost me?” Or, “Why wouldn’t I just buy this equipment outright?” Here are tips for answering these common objections.
3. “What’s the Bottom Line?” Assuming you have a solid sense of your prospect’s equipment needs going into your meeting, be prepared to offer the affordable monthly payment option right off the bat. What happens if your prospect still balks? Extend the terms of the deal to lower the cost of monthly payments.
4. “Why Not Buy It Outright?” To address the “Why wouldn’t I buy this equipment outright?” curveball, you might simply rephrase the question to ask, “Why would you?” Explain how leasing offers your prospect the ability to control and conserve their cash with a predetermined monthly expense and the opportunity to upgrade equipment as technology advances.
When your prospect expresses an objection in vague terms, ask questions, and gather some facts to uncover his or her true concerns. Taking the time to clarify the nature of the objection is well worth the effort since it’s almost sure to arise further down the road.
Nothing Succeeds Like Success
5. Share a Success Story. In preparing for your meeting, challenge yourself to recall three new and relevant customer success stories. When the conversation leads to the right moment, reach for one of these which best addresses your prospect’s current situation. This approach can set you apart from your competitors. Success stories move the conversation from a theoretical concept to an actual result. They also validate your capabilities instead of merely touting them. Also, don’t be afraid to borrow success stories from your colleagues. And in the spirit of collegiality, share yours with them.