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Using Financial Solutions to prepare for tech integrations in 2023

November 17, 2022

Using Financial Solutions to prepare for tech integrations in 2023

As we approach the end of 2022, it’s time to think about how we ‘ll prepare our customers for end-of-year technology purchases and updates going into 2023. In this blog we’ll discuss how financing can alleviate many of the headaches that come with the end of the year and how you can set your customers up for success.

Financing technology benefits for you and your customer

Financing provides several benefits for you and your customers including larger sales, improved cash flow, recurring revenue through repeat business and so much more.

Financing helps close more sales because a monthly payment is easier to manage and justify than one large payment. These predictable payments allow your customers to budget more efficiently so they can strategically invest in other areas of their business. Increased buying power and flexibility allows them to allocate their cash to other areas including marketing, advertising, recruiting, etc., which helps grow their business and focus on areas that are sometimes difficult to prioritize.

What and when your customers buy is important when it comes to technology. Financing encourages customers to update their technology when they are supposed to in order to avoid outdated technology. Outdated technology creates a long list of problems for you and your customers including lack of familiarity, a lower gross margin percentage, noisier customers and much more.

Avoiding a cash sale and offering financing also helps your customers avoid becoming “technology hoarders.” A cash sale means that customers take ownership of that technology on day one which means they are much less likely to update, creating technology hoarders, who keep outdated technology because they feel they should as owners of the hardware. Financing embraces an optimized technology refresh schedule, making end-of-the-year updates seamless and easy to make. Instead of customers scrambling to find enough cash in their budget to purchase updated technology, they can instead justify necessary updates with monthly payments.

Attracting new customers is another benefit of financing. Utilizing financing in your sales pitch and day to day will grow your customer base by making technology updates more accessible. Many customers may not have the cash on hand to make a large purchase upfront, so offering to finance helps them make necessary technology updates.

Related: Cash flow matters: technology sales and the consumption model

Help your customers help you

Once your customers know the benefits of financing, they’re likely to return to do more business with you. They won’t need to worry about ruining their budget with technology updates, and they’ll come to you for their big purchases instead of competitors that may not offer the same financing options.

Instead of encouraging your customers to update their technology via cash payments and ownership, offer financing for technology to help mitigate technology hoarding. Help your customers budget efficiently and grow their business by offering financing and making it a part of your sale. To start learning more about financing options, take a look at our $1 purchase option lease and EFAs by clicking below.

Schedule a consultation with our Financial Solutions team