VENDOR OBJECTIONS
Eight reasons vendors don't offer financing, and the answer to each
American Capital Group's vendor division has heard every reason for leaving financing off the quote. Each one has a short answer, and none of them costs you a sale.
THE OBJECTIONS
Reasons vendors don't use financing as much as they should
Each objection below is one we have been given, in the words a vendor used. The answer is what our vendor account executive said back.
Our customers don't ask for leasing, so we don't quote it unless they ask.
Do not assume a customer will pay the purchase price just because they did not ask about financing. Many buyers for whom a monthly payment makes the difference will never raise it; you have to suggest it. Once you do, they are more likely to go ahead, because you have made the equipment affordable.
If my customers need financing, they usually find it on their own.
If the customer walks out the door to look for financing, he or she may never come back. Time to shop is time to change their mind, or to find a competitor who offers financing at the counter. You want to close the sale while the customer is in front of you.
I am not familiar with leasing.
You do not need to be. Introduce us to the customer and we do the work. If a customer asks something you are unsure of, say that you will let them talk directly to your lease professional at American Capital Group, who will answer their questions and tailor the lease. We will send them back to you for the technical questions about the equipment.
Leasing is too expensive for my customers.
Your customer is rarely as price-sensitive about financing as you think. Most are satisfied as long as the monthly payment fits the budget. Terms from two to five years let us tailor the payment to what the business can carry, and the equipment is earning while it is being paid for.
Leasing does not cover software, installation, training or other soft costs.
That may be true of many lenders. American Capital Group's leases are all-inclusive: software, installation, delivery, training and maintenance agreements can be included, so the customer finances the whole package they buy from you.
If you reject the application, the customer will be angry with me.
We approve a substantial share of the applications we see and we are not afraid of a reasonable credit risk. When we do have to say no, we tell the customer ourselves, with tact, so their goodwill toward you and your relationship stay intact.
I don't want to ask my customers for sensitive credit information.
You never have to. Introduce us and American Capital Group handles everything: the application, any financials that are needed, the documents and signatures, and finally the funding, paid promptly to you.
We don't want to get bogged down with extra paperwork.
When you arrange leasing for your customers through American Capital Group, we handle all of the paperwork. Your time stays free for more productive work and more selling.
What offering financing takes from you: introduce us. The application, the credit decision, the documents and the funding are ours. How it works walks through the eight steps.
Keep reading
The vendor program
What a vendor account includes, and the form that opens one.
Benefits of financing
What a payment does for the buyer, and for your close rate.
Dealer financing
Programs built for equipment dealers and distributors, with private-label applications.
How it works
The eight steps from a quote with a payment on it to money in your account.
Ready to put a payment on your next quote?
Set up a vendor account and an ACG account executive walks you through the first deal. Or write to vendor services and ask anything first.