The Benefits of Leasing to the Vendor
By offering your customers the option of lease financing, you are giving yourself a selling advantage.
- Prompt Invoice Payment
Your invoice to the lease company is paid promptly and in full within days of equipment delivery. You do not have to carry customers and offer terms.
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- Higher Margins
Leasing lets you sell add-ons and fully equipped product, as the customer is looking at a monthly payment instead of having to cut back on features and options to save on the initial purchase price.
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- Shorter Sales Cycle
With the option of lease approvals within hours, the customer does not have to make arrangements with the bank to secure financing. The deal is moved to completion quicker.
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- Less Discounting
Discounting can be avoided, as most lease customers are looking for the monthly lease payment to fit their budget rather than the overall equipment cost.
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- Closing Leverage
The monthly lease payment could be the difference to change 'buying or not buying' to 'buying or leasing'.
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- Collection Hassle is Eliminated
When your customer leases equipment, you receive payment in full. No more chasing delinquent accounts or bounced cheques.
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- Repeat Sales
Future sales are to be expected as the customer will be back for upgrades or additional equipment by way of lease financing.
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- Replacement Cycle
The 'Obsolescence Factor' is addressed as the customer knows that the equipment can be upgraded at any time, to take advantage of the latest technological advances.
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- Vendor Support Programs
Conducting on-site seminars and making joint sales calls, 1 -800 phone and fax lines are some of the ways Cancorp Group Ltd. can assist you in helping your customer reach their goals with a lease financing program that works.
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- Non-Recourse
All transactions are approved on a nonrecourse basis to the vendor.
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The Benefits of Leasing to the Customer
Businesses understand that profits are derived from the use of equipment - not from owning it.
- No Capital Outlay
Leasing usually provides 100% financing, including costs such as shipping, delivery and installation. Operating capital or bank lines of credit can be used to generate profits.
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- Payments Are Fixed
Lease payments are fixed for the term of the lease, making forecasting and budgeting easier.
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- Flexible Terms
The customer can have a lease structured to meet his business needs - length of term, monthly, quarterly, semi-annual, annual or seasonal payments can be specified, as well as billing dates.
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- Tax Benefits
Your company can deduct the monthly lease payment as a business expense. Check with accountant.
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- Inflation Protection
The client is making fixed lease payments into the future, based on today's costs.
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- Accounting
The lease can appear on or off the balance sheet for financial reporting purposes.
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- Obsolescence Protection
Leasing offers the option to upgrade equipment as technology advances and business requirements change.
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- Warranties and Guarantees
The full manufacturers warranty and guarantee apply to all leased equipment.
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- End-Of-Lease Options
At the end of the lease term, the customer can purchase the equipment outright, return the equipment and lease the newest piece, or renew the lease for an additional fixed period of time.
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- Additional Options
The client has the option, in most cases, to buy-out at any point during the lease term.
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