10 Ways Leasing Will Help Grow Your Business
8th January, 2020
- 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.
- 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.
- 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.
- 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.
- 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.
- 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outright provides an immediate sense of satisfaction, this often diminishes over time as the equipment gets old and out-of-date.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.
- 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.
- 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.
- 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).
- 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.