There are many problems, which face business today. To operate efficiently, major capital expenditures are often required. To help alleviate the strain associated with a major system purchase, the financing alternative will prove to be an invaluable marketing tool. KING COMMERCIAL CAPITAL, will provide the financing necessary for customers to acquire equipment, while not affecting their present bank lines or tapping their internal resources. Further, KING COMMERCIAL CAPITAL, in concert with the Vendor will develop specialized and innovative marketing programs to assist in increasing market penetration. Companies are leasing simply because it is a practical and cost effective method of acquiring equipment needed to run a business operation. Leasing provides the use of equipment for needed periods of time at fixed rental payments and permits a company to be more flexible in its management of assets and liabilities. Sophisticated managers have learned the primary benefits of higher productivity and profit come from the use of equipment and not necessarily its ownership. Some managers may think equipment leasing is complicated, but what could be easier than signing a lease/purchase agreement? At the maturity of the lease the customer either owns the equipment or has the option to purchase the equipment, renew the lease or return the equipment to the lessor/owner. Of course, leasing is not just for companies with tight cash flow; most companies will prefer to lease as it allows them to use their liquidity more effectively. Leasing also allows companies to use their working capital for growth and expansion rather than tying it up in long-term in fixed assets.
USE AS A PRE-SCREEN TO QUALIFY CUSTOMER: Determine if the customer is viable by providing KING COMMERCIAL CAPITAL, with the transaction data; tremendous resources can be saved or redirected by ascertaining a customer’s financial ability to acquire the solution. Further, other forms of the Vendors solutions may be considered predicated upon our findings.
OVERCOMING THE SALES/PRICE OBJECTION: By offering a monthly payment option, the customer’s attention is directed to the monthly payment as opposed to the total dollar system cost. By including the monthly payment option in the investment analysis, the system cost appears even more attractive.
ACCELERATES THE SALES CYCLE: By using the pre-screen and mitigating any potential credit weaknesses and then having the customer’s credit approved, there will be no delay in payment to the Vendor. Further, the customer will not have to spend time seeking out other financing which could delay the process or possibly impair the sale; i.e. we have encountered situations where a customer’s bank has questioned the need for a particular system or one that costs a particular price.
CLIENT AS A FULL SERVICE VENDOR: By providing the system solution as well as offering KING COMMERCIAL CAPITAL’S services in the financing solution, the Vendor is able to provide its customers with a total solution effectively broadening the Vendors product scope.
SYSTEM AND RELATED COSTS CAN BE INCLUDED IN THE FINANCING: Leasing provides the customer with 100% financing. The Vendor system purchase may encompass only one element of the customer’s acquisition. Additional costs that can be included in the financing are third party hardware, maintenance and ancillary costs. In many situations, maintenance costs for specific periods can be included in the financing solution, thereby enhancing cash flow to the Vendor.
FIXED MONTHLY PAYMENTS: By providing for fixed monthly payments, the financing solution allows the customer to budget for the acquisition over time, diluting the overall effect to the customer’s cash position. Further, the customer bears no interest rate risk.
INFORMATION SOURCE: Once KING COMMERCIAL CAPITAL, contacts a prospect, a new channel of communication is open to that customer and real prospects can be immediately identified. Further, information relative to competition and sales objectives is often relayed to KING COMMERCIAL CAPITAL by the customer; this information and any other relevant communication is directed back to Vendor so that additional strategies can be employed, if necessary.
EQUIPMENT ADD-ONS: Once a customer leases through KING COMMERCIAL CAPITAL, additional equipment purchases can be added-on to the existing lease, greatly enhancing the sales cycle and the ease with which the customer acquires additional equipment from Vendor.
