For businesses selling a solution to other businesses, the right vendor finance program with the right asset finance partner means three things to your business:
- Increased Revenue
- Increased Client Retention
- Decreased “Days Sales Outstanding (DSO)” or improved Cash Flow
If this has piqued your interest, then here is a quick summary on what to look for;
An investment of your time
First of all, engaging with an asset finance partner should not cost you any money whatsoever. If anything, when structured appropriately, it can in fact add income to your existing business. It will however require an investment of your time. A successful Vendor Finance Program is based on a long-term relationship, where your selected partner understands your business, so processes, procedures and or solutions can evolve and adapt as your business does.
Transparency is key
Like any relationship, without transparency, things can quickly go astray. If you are constantly surprised by things you were not previously made aware of, then the relationship is destined to fail, and your clients are likely to experience a poor level of service which will have a direct impact on your business.
An experienced asset finance partner knows that they are dealing with your clients. They are not the clients of the asset finance partner, no matter what any legal document says. They are your clients and you should be aware of any correspondence.
Have you thought about…?
Most asset finance partners will have a Sales team, BDM’s, whatever they may be called that will work hand-in-hand with your team. If you do not hear the words “Have you thought about?” then they are adding very limited value to your team and the results will reflect this limited value.
Full lifecycle engagement
And finally, if you genuinely want to increase your revenue, improve client retention and improve your cash flow, ensure the asset finance partner is explaining the process they follow beyond the initial sale. An asset finance agreement is typically for 12 plus months and in some industries up to 60 months. The asset finance partner may end up engaging with your client more times than you do, during that period. Staying informed on this engagement and understanding the process they follow beyond the initial sale will enable you to achieve the above outcomes.
The 3E Advantage team would be more than happy to discuss the topic of what to look for in a vendor finance partner with you at a time that suits you. Speak to the team today. – It’s about the people