Vendor finance or sales aid finance is the financial opportunity offered by suppliers and manufacturers of high priced units. The concept of sales aid finance is to assist the supplier in facilitating the sale of high value items and increase profits. It reaches beyond the preconceived notion that sales aid finance is a point-of sale finance.
In U.K. the any unit costing over £5000 is considered as high value item. A good example will be a car dealer providing sale aid finance to customers to facilitate the sale of cars and creating an easy opportunity for customer to get the financing to buy the car.
Normally, the sale aid is practiced for Âbusiness to businessÂ sale like aiding firms to purchase expensive office equipment or IT units or manufacturing plants and machinery.
The sales aid finance is feasible and practical for new businesses in U.K. Usually new businesses face financial obstacles, like not having past business credibility. The financiers are willing to facilitate the business in more than one way, apart from financing it creates a warm working relationship between the supplier and customer. It helps the business to increase margin on sales, build up cash flow and provide more customer solutions which produces more sales orders.
ADVANTAGES OF SALES AID FINANCE
Business world is competitive and every option should be exercised to enhance business sales and profits. Sales aid finance creates such opportunities to push sales and maximize profits by creating easy financial environment to purchase the expensive products.
Professional companies offer professional sales aid programs to create a market for your items. The program includes training of front-desk officers or representatives in knowing the product. And also develop a well-researched method of making the customer aware of finance aid in the sales pitch.
APPLICATION OF SALES AID FINANCING
A commercial car dealer can be assisted with secondary funding. This allows the dealer to offer the customer in-house financing for new or used vehicles. Similarly, long term hire facilities can be provided to manufacturers of expensive equipment.
The growth in demand of sales-aid leasing is a strong indication of this programÂs popularity in U.K. Sales-aid leasing converts potential buyers in to sale by providing them finance options. Lack of this opportunity may possibly mean loss in sale. Sales-aid leasing gives you a viable option to offer to the customer to finance the high value item. It is a practical solution to override the dilemma of Âcannot afford obstacle and keep you focused on other aspects of your business.
In the U.K. sales-aid leasing has become a key player in chalking out successful strategies to enhance sales. New businesses are availing the sales-aid leasing because the monthly payments provide tax benefits and also make it convenient to buy the product without pulling out huge amounts of cash from business.
Sales aid finance is the best answer that works in the interest of both the vendor and customer. Try it to stay one step ahead of the competition.