You’re talking with a potential buyer. The conversation’s flowing; things are going well. You begin to talk price, and quickly the mood changes. Your prospect is exhibiting serious signs of concern, and you can sense hesitation. You start to get concerned too, because you’re worried about losing a good customer to sticker shock — again.
The situation is not uncommon, and it is not irreversible. Customers might want to drop out of the sales funnel because they don’t have the cash reserves to sign on the bottom line. However, you can keep your warmest prospects from getting stuck in sales limbo by offering hope in the form of customer financing.
Offer Financing to Customers
Most of us have engaged in some form of financing in our private lives, such as taking on car payments instead of paying for a vehicle upfront. Entrepreneurs and business owners understand the value of financing, too. That’s why they’re open to hearing about it from you.
Similarly, many companies lease or finance their phone systems, security equipment, and sometimes technology. Leasing is a form of financing and allows companies to get the solutions they need without having to wait until they have cash on hand to pay the invoice at once. It also helps them budget because they know what’s coming out of their cash reserves monthly, quarterly, and annually.
Of course, just because customers may be familiar with financing doesn’t mean they aren’t worried about taking on more debt. Rather than seeing their sales objections as a sign of disinterest, lean into them. Many objections are buying signals and show that your customer is seriously considering purchasing your product.
Turning Price Objections Into Financing Conversations to Close Sales
Below are a few common sales objections and statements your prospects might make during sales conversations. You can turn these objections into opportunities to discuss equipment financing and equipment leasing as suitable solutions.
Phrase #1 to listen for: How much does it cost to install and train staff?
Many customers aren’t as worried about paying for equipment as they are paying for everything else like installation, software, extended warranties, training, and support. What many don’t know is that they can get financing through you for the complete project. Consequently, all the soft costs will be covered by the loan, not just the price of the equipment.
At Marlin Capital Solutions, we’ve helped our partners work with clients who require complete project financing. Often, their payments are spread between one and six years, depending upon the overall price. In some cases, we can even help you extend the life of the financing agreement beyond the six-year mark, which moves the needle for many on-the-fence prospects.
Phrase #2 to listen for: My company doesn’t have reliable receivables, so I’m not sure when I could afford this.
Not all companies get paid directly from their clients. Some get paid by third-party providers. Consider the case of a flood and fire restoration company that receives money from insurance companies. Insurance carriers may take 90 days or longer to remit payment, which could leave your prospect in a money bind from time to time.
A good financing answer to this sales objection is a step-up payment structure. Step-up payments allow customers to make minimum payments for the first few months. It’s a solid way for them to avoid paying everything up front, especially when they’re waiting for a large third-party check to arrive.
Phrase #3 to listen for: I might have to revisit this purchase during my “in” season.
Lots of businesses experience seasonal or annual fluctuations, depending on industry. Limited cash in the bank doesn’t have to keep your prospect from engaging in business with you. The challenge is your customers need payment options that work with their cash flow.
Marlin has the capacity and flexibility to work with your customers to create seasonal financing structures. These structures set up payments to be lower during off-season times. During the in-season period, the payments are a little bigger to make up for the lighter cashflow. Again, many business owners and procurement managers are unaware that this type of creative financing solution exists.
Lump sums aren’t easy for a lot of companies to swallow. That’s why you have to break your pricing down into digestible amounts with financing.