10 Ways Leasing Will Help Grow Your Business

1. Leasing increases margins: Businesses that offer leasing have been proven to increase sales and margins by 25%, especially if the finance is fast and simple. Baker Leasing pride ourselves on our excellent service levels and have an efficient and hassle-free process.
2. Leasing lowers the barriers of entry: Making it easier for you to close sales and helps customers to purchase more of your products. Leasing is a fantastic method to handle many potential objections that customers may have.
3. Leasing improves liquidity: You get all your money upfront, with no risk, directly from the finance company. The combination of up-front payments and wider market access increases liquidity. Baker Leasing track and confirm all invoice payments to the supplier so your accounts team will be saving time.
4. Leasing is an intelligent sales strategy: the flexibility of leasing has flow-on benefits, including wider market access, better customer engagement, and tighter inventory management.
5. Leasing supports customer loyalty: With computers and many other tech products having a limited life span of 3-4 years, leasing agreements provide a great incentive to set up sustainable relationships with your customer base.
6. Leasing enhances customer satisfaction: While buying a product outright provides an immediate sense of satisfaction, this often diminishes over time as the equipment gets old and out-of-date. A leased product allows the customer to look forward to upgrades and improvements.
7. Leasing enables feedback and referrals: Unlike a traditional sales model, a leasing agreement allows a feedback loop to develop between your business and its most valuable assets – your customers.
8. Leasing creates more repeat customers: A leasing agreement provides an ongoing relationship with your customers and the refresh rate for an IT equipment lease is around 70 per cent. This means over 2/3 of your customers are likely to come back.
9. Leasing is becoming the new standard: From media and software services through to e-commerce and cloud computing applications, the “subscription economy” has already made a big splash and it’s not going away any time soon. It is widely understood that it makes no sense to own a depreciating asset. Far better to use capital in other areas of the business and gain a return on capital employed (ROCE).
10. Leasing makes it easier to control your cash flow and forecasting: With a leasing agreement, you know exactly when your customers will need to refresh their hardware. This allows you to free up cash flow that would usually be tied up in stock.