Help Your Customers Qualify for Financing
With the banks limiting the type of lending they will provide now more than ever, helping customers qualify for equipment financing will help you increase sales while in this downturn. We’ll break down questions you can help your customers answer so they can get approved and thank you in the process.
First, the basics any customer will need to provide to be reviewed for equipment financing:
While reviewing this information, customers will be asked some additional questions so that there is a broader picture of their business and their unique situation, things you won’t find on paper. Providing your customers information in advance and specific to the equipment will help them better answer the questions. Here are examples of a few questions your customer could be asked and how you can help prepare them:
Question 1: How is the business functioning during this crisis?
Lenders will want to know what changes have been made to sustain the business and how long they can continue these methods. What capacity were they operating at before compared to now?
Your opportunity here is shed light on either a) how their business is struggling and would greatly benefit from your necessary equipment right now or b) how their business is doing well and that they shouldn’t risk missing out on the potential sales they’d gain by getting the equipment. Explain how the equipment will help their business operate more efficiently, or how the equipment will reduce their costs overall.
The Connection: When your customers apply for financing, they should be able to explain how the equipment will enhance their situation in this crisis, no matter which boat they are in.
Question 2: What are your plans to continue business and generate revenue during this time?
Remember that lenders aim to finance businesses that they can trust their cash with. Help your customer see that the equipment purchase is a proactive way to sustain business and keep customers.
The Connection: Your customers’ plans to continue business and generate revenue include purchasing equipment in order to operate businesses efficiently and continue (or increase) product or service output.
Question 3: How is the equipment you are requesting essential for the business?
As a broker, you likely wont know the ins and outs of the equipment your customer is looking to purchase. However, you can ask questions about the equipment that pertain to why the customer would want to buy it. Questions like-How much in revenue will this bring you in this year?- will help customers see why the equipment is necessary and help them tell financing companies why the equipment is an integral part of their business. Other ideas of what to ask about include input/output per hour, costs savings, or how the machine is more efficient than previous models. Help them highlight why the equipment will make or break their business and how it could save them during this crisis.
The Connection: Your customer cannot have a well–operated business without the equipment and purchasing with your help will keep their business alive during this time. Financing is required to get the equipment and doing so will result in a healthier business.
The more customers understand how the equipment will better serve them, the more likely chance they have at getting approved for that equipment. ACG aims to help business stay alive during the coronavirus pandemic and support where possible. If you have a current customer who needs funding, have them apply, or reach out to our team for a quick quote or consultation.