How to Offer Financing to Close More Deals

Many salespeople find that one of the most challenging obstacles to overcome is getting approval for financing. To close more deals, you need to be able to offer potential customers financing options that work for them. Businesses large and small can often benefit from some form of financing, whether it’s a line of credit, term loan, or equipment leasing.

More deals are closed when financing is an option, so it’s essential to be familiar with the different types of financing and how they work. Whether it’s a home improvement marketing company or a widget store, you can close more deals and grow your business by offering to finance. This blog post will cover several tips on how to offer financing to close more deals. So let’s start the discussion.

Bringing Up Financing Early In The Process

If you wait until the very end of the sales process to mention financing, it can be a turn-off for potential customers. They may feel like you’re trying to take advantage of them or that you’re being dishonest by not bringing up the topic earlier. The best way to approach financing is to bring it up early in the conversation.

For example, let’s say you’re a car salesman. You should bring up financing options as soon as the customer shows interest in a particular vehicle. By doing this, you can build trust and establish yourself as a credible source of information. Any marginal gains that can be had by not discussing financing upfront will likely be negated by the customer’s suspicion of your motives.

Be Transparent About The Financing Process

It’s essential to be transparent about the financing process so potential customers know what to expect. They should understand the terms of the loan, the interest rate, and any other fees associated with borrowing money. Many businesses choose not to offer to finance because they’re afraid of losing money on bad debt. But if you’re upfront about the risks and rewards of financing, you can close more deals. 

With the right financing program, you can offer customers the transparency they need to feel comfortable about borrowing money. To make a financing offer attractive, emphasize the benefits of working with your company. For example, you could highlight that you offer competitive rates, flexible repayment terms, and a simple application process.

Also, explain the risks involved in taking out a loan, such as a possibility of defaulting on payments. By being transparent about the financing process, you can close more deals.

Include A Payment On Every Quote

One of the best ways to close more deals is to include a financing option on every quote. This way, you’re offering customers a range of payment options and making it easier for them to say yes to your product or service. There are many different financing, so research which ones will work best for your business. One popular financing option is ” point-of-sale, ” which allows customers to finance their purchases over time with low monthly payments.

Another great way to close more deals is by offering a leasing option. It is especially beneficial if you sell expensive items like cars or machinery. Leasing allows customers to use your product without committing to a long-term purchase, and it can be a great way to get new customers.

Be Prepared To Negotiate

Another great tip to offer financing to customers and close more deals is to be prepared to negotiate. It may seem obvious, but you would be surprised how many salespeople are not ready to negotiate regarding financing. 

Understand the customer’s needs and budget, as well as your own company’s policies, and be prepared to go to a mutually beneficial agreement. Many businesses are willing to negotiate on financing terms, so don’t be afraid to ask. For example, you may be able to extend the repayment period or lower the interest rate. You can close more deals by offering to finance with the right negotiation skills.

Sell The Payment and Program, Not the Product

When offering financing to close more deals, it’s essential to sell the payment and the program, not just the product. In other words, don’t just focus on what the customer is buying; focus on how they will benefit from the financing. Most acquisitions are based on customers’ feelings and whether they believe they can afford the monthly payments. 

It’s essential to close more deals by appealing to the customer’s emotions and selling them on the idea that this is a great way to make their purchase. For example, if you’re selling a car, don’t just talk about the features of the vehicle but also the low monthly payments and the fact that they can drive away today. You’ll likely close the deal by selling the payment and the program.