- Can this help sales lost to declined financing? YES!
How much time and money have you invested in your sales/marketing department only to have your representatives not be able to get an interested customer approved for credit? As major financial service providers across the nation continue to pull back from smaller ticket transactions , this is happening with increasing frequency. As a result, more customers are limited in their access to credit, putting more pressure on them to utilize cash, which may or may not be available.
- When will I receive funding? You get paid at time of installation!
Some financial resources will delay their funding of transactions to increase the profitability of the deal. This can significantly impact your cash flow. Make certain you are aware of the timing of these payments, and what aspects of the deal must be complete before funding is issued.
- Is there promotional support? YES!
It can be invaluable to your sales if done in a way that aligns incentives with your business approach. Ask about the types of promotions that are offered by your financial re-source, and what the net impact will be to you and your customer. Be certain that your partner works with you to design these promotions, and that you have a voice in their creation and impact.
- Will the full purchase price be funded? YES!
Often financial resources will hold back a percentage of the transaction for a “processing fee”. This is similar to credit card processing fees. Make certain you understand the nature of all fees associated with these transactions, and who will be paying them (often these can be rolled into the financing).
- Will you charge me back if my customer does not pay? NO!
This is a hidden cost of the selection of a financial services partner – be sure you have selected one that clearly states you have no liability or responsibility associated with customer defaults.