Vendor Finance In Canada . Can A Customer Financing Program Take Your Company Behind Frenemy Lines

You Didn’t Know Why Customer Financing Programs Work?


Vendor Finance In Canada . Can A Customer Financing Program Take Your Company Behind Frenemy Lines




Vendor finance in Canada. It's of course the financial term for providing or assisting your customers with a financing program that allows them to purchase your products and services without many concerns arising such as budgets, total overall cost, cash flow depletion , etc. It's our version of taking you ' BEHIND FRENEMY LINES ', as those issues can make our break your sales goals and competitive success. Let's dig in.

We are always reminding our clients that in order to provide effective customer financing you need not be a finance firm yourself. You just need to align yourself with a partner that will do all the work for your firm, and that's not a bad thing. In reality this method of customer financing exists everyday.

Major retailers use credit card and finance companies to allow you to charge their product, car makers practically invented the model with the low down payment and fixed cost obligation of acquiring a car instead of writing a cheque for one. So why shouldn't your firm be the one participating in all this sales and revenue success?

One of the key basics of a client finance program is that it takes your clients mind off the ball - and that ball is of course PRICE/COST of your products or services. You're often no longer debating clients on margins, total acquisition costs, etc - you're instead offering them with a simple method of acquisition that removes some of that OBSTACLES TO INNOVATION we mentioned - i.e. Sticker shock of total of cost, price, budget timing, cash flow, etc.

Very few firms in Canada have the combination of financial wherewithal and skills to start their own internal client finance program. The capital and skill required in this industry make it a business for specialists only. So while your firm could benefit from increased profits of financing your products the technical expertise, management focus, etc required to run this business make it one for no participation from lightweights! Bottom line, leaves it to the experts, but still reap all the benefits of increased sales, profits and cash flow.

A client financing program simply allows your sales team to close transactions quickly and remove client objections when it comes to price, timing of delivery, competitor issues, etc. If your competitors already offer customer financing you're behind the 8 ball

already and didn't even know it - if they don't you're suddenly the front runner!

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in offering a client finance solution that meets your sales needs.



Stan Prokop - founder of 7 Park Avenue Financial –
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

7 PARK AVENUE FINANCIAL = CUSTOMER FINANCING PROGRAM EXPERTISE






CONTACT:

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653
Email = sprokop@7parkavenuefinancial.com






















Stan Prokop

Sales Generation At No Cost? Use Customer Financing Via Vendor Finance Leasing Programs For Revenue & Cash Flow Success

Yes Virginia – there is a great sales tool to increase sales and cash flow in Canada !


Information on how to offer customer financing , aka ‘ vendor finance ‘ leasing programs at no cost for great revenue gains!




Would a Customer Financing Program for your clients increase your sales at virtually no cost to your own firm? You might me surprised that many of your competitors are beating you at the sales game only because they have mastered utilizing the tool of vendor finance via leasing programs.

Let's examine how your firm can generate additional sales, and accelerate cash flow by using a time worn tool used by thousands of Canadian firms already.

The concept of a vendor finance program for many firms conjures up images of your firm all of a sudden losing its core competency and becoming something of a finance firm or specialist. That’s the farthest thing from the truth, if, and it’s a big if, you do it right.

The reality is that there are different; let us call them ' models ' in a customer finance program. Yes of course you could turn your firm into a mini bank and finance clients - only problem there is that you need huge amounts of capital which only large corporations have access to.

And additionally, when you finance a customer directly you create large revenue recognition challenges that you don’t need. Bottom line of course is that you are looking to generate revenue, not defer it!

If you create our recommended customer financing program at no cost your sales force becomes armed with an additional tool to their tool kit. One of those tools is price - in that for a small reduction in the cost of your product and service that amount can then be used to subsidize the financing cost to your client.

Clients are as much concerned about acquisition cost as they are about the quality and service of your firm. In effect cost and financing often becomes what we have termed over the years as an ' obstacle to innovation '.

If we haven’t made it clear by now our recommended strategy for a vendor financing customer financing program is simply to align yourselves with a partner that can facilitate your program, at, as we said, virtually no cost to you.

Under your direction a program can be implemented, under your firm’s name, and financed totally by the partner. Oh and by the way, that takes away all the credit and bad risk also, which is a huge gain.

Using a vendor program to the maximum allows you to get creative in a number of ways, you can offer deferred payment programs. Remarketing profits suddenly have the potential to appear, and you can even take ownership of the asset at the end of the customer’s lease or rental term, allowing you to generate an additional sale as well as control the aftermarket in your product.

Intrigued? You should be, as we said, as your competitor is probably doing this already in some form. Speak to a trusted, credible and experienced Canadian business financing advisor on setting up a customer financing program that meets your needs.






Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/customer_financing_vendor_finance_leasing_programs.html

How Competitors Beat You At Vendor Finance and A Customer Financing Plan For Your ( Lost ) Clients

Considered a Canadian Client Equipment Or Service Financing Program ? Here’s How - Easily!


Information on benefits of vendor finance . A customer financing plan increases sales, cash flow and market opportunities.



Here's the problem. You don't have one, your competitors do. We're talking about a customer financing plan for your products and related services. And can we all agree that a competitive disadvantage is not a good thing, which is why Canadian business owners and financial managers might well want to consider a vendor finance program for clients/

So how exactly does Canadian business benefit from the ability to offer customer finance solutions for clients. If we had to sum it all up into one thing we guess it well might be: ‘Increasing the sale of your products '!

The good news is that a customer finance program can be easily put in place either directly, if you have the experience and resources, or as importantly, indirectly via a solid partnership arrangement. And if you choose the partnership arrangement you can pretty well reduce the cost of your program to zero, which is a great price point, wouldn’t you agree?!

The key concept around a financing program for your clients is essentially that it is a strong sales tool. Companies in Canada that use vendor financing tend to form over time stronger relationships with their clients. While the finance industry itself tends to portray this type of program as a ' control mechanism' on your clients in our opinion its more of a customer relationship scenario. but we'll let you decide that one.

It all starts of course in your firm’s sale cycle, and hundreds and probably thousands of firms that utilize vendor finance tools quickly find that simply offering a finance option in many cases gets that purchase order or commitment from your client. Unbeknownst to you clients might well be talking to your competitors about their ability to offer a finance option on the same products and services you are competing for.

Also, at the same time a financial firm who is aligned with your competitors might in fact be pitching your competitor’s product versus your own for their own selfish reasons.

One of the strong merits of a customer financing plan always comes back to the relationship cycle, because even after you have provided your client with a customer financing option the flexibility around financing options allows you to constantly work with your client on upgrades, add- ons, Using a basic ' master lease' allows you to constantly add on new sales and services to your existing arrangement with clients.

Ever wondered how your competitors sometimes seem to have made a sale to a major client in a much shorter sales cycle. If you investigated closely you might just find that your client was less focused on price simply because he was being offered a financing option via vendor finance that made sense and was quick and easy to facilitate.

At the end of the day you can devote money, time and resources to setting up your own program. In many cases that requires a major commitment of time, capital, and oh yes, you have to know what you are doing.
A strong alternative? Work with a qualified third party to set up your own customer financing plan at no cost, at the same time customizable to your own firm’s products, services, and needs.

Speak to a trusted, credible and experienced Canadian business financing advisor on a program that works best for your firm. All of a sudden you may well find that you are now winning and regaining lost clients and sales otherwise not achievable without a finance solution.





Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :



http://www.7parkavenuefinancial.com/customer_financing_plan_vendor_finance.html