offering your commercial and govt customers funding
Post on 23-Jun-2015
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COMMERCIAL FUNDING FOR YOUR CUSTOMERS
Before you leap into finance speak to Clear…
Chris Barker , Renewables & Energy Efficiency AdvisorSean Clarke, New Business Support Coordinator
Presentation
Staying Ahead Of Your Competitors
Leading with Leasing
Cash & Leasing
Cash only
How Leading With Leasing Enhances Your Sales
Overcome customer budget restrictions and price objections
Increase your order values, maximise your profit thru upselling
Guarantee your income, and increase your cash flow. You get paid the full 100% of your invoice value immediately upon installation
Protect your customer base and create repeat business, your customer is signed up to you. Provides opportunity to revisit and sell upgrade or extra equipment
Be ahead of your competition. Large companies are moving to leasing in this sector, benefit from being an early adopter
An understanding of how the process of selling through leasing can allow you to increase your sales conversion rate and
plan ahead for future sales cycles.
Customer enjoys a return on their investment immediately – they can purchase now, their business enjoying the benefits now. The benefits sometimes outweigh the costs of the scheduled repayments, producing a positive cash flow. With cash, they have to wait often years until the investment reaches the break-even point. Why make them wait!
Customers pay gradually in instalments – retain liquidity in their business, so they can gain interest, or invest in their core business
Customers can afford to do additional projects, either now or during the lease term, because you’ve spread their costs
Their investment is future-proofed – customers can upgrade to new higher-efficiency/profit equipment whenever they want. Customer is not investing in a depreciating asset.
Lower ‘sign-off’ levels for the customer, empowers decision making at lower management, speeds up decisions
Tax advantages – customer enjoys writing down allowances on each payment (see diagrams)
How Would A Customer Benefit From Leasing?
1 3 5 7 9 11 13 15 17 19
-£30,000
-£25,000
-£20,000
-£15,000
-£10,000
-£5,000
£0
£5,000
£10,000
£15,000
Bala
nce
of r
etur
n on
inve
stm
ent(
£)
No. of months following up-front cash pur-chase
Paying by Cash - return from RET / EE Investment
Break-even point – a wait of over 2 years
Up front cash expenditure of
£28,700 on investment
Period of negative return
The chart shows the issue with paying through cash- it removes core funds from the business which could be invested elsewhere, AND it requires a period of time before the capital is repaid and the customer can enjoy a return on there initial investment.
Paying through leasing results in an immediate return on the customers investment as, where possible, the rental will be aligned to the savings made.
The Disadvantage Of Paying With Cash
The Advantage Of Leasing
1 4 7 10 13 16 19 22 25 28 31 34 37 40£0.00
£200.00
£400.00
£600.00
£800.00
£1,000.00
£1,200.00
£1,400.00
Mon
thly
Cas
h po
sitiv
e ga
ins
(£)
Monthly repayment schedule (3years)
Cash Positive Gains from EE In-vestment
£1,162 monthly savings, monthly lease payments of £1,008 = Net Monthly Cash Gain of £154
Lease payments completed after 36 months.
Leasing can pro-duce immediate return on invest-ment (paying by cash does not!)
The chart shows the monthly [in this example] benefit of paying through leasing. The customer receives a ROCE from the funds that remain in the business, and also realises a cash positive gain each month. Come the end of the lease agreement, the savings are accelerated as all savings are realised by the customer.
1 4 7 10 13 16 19 22 25 28 31 34 37 40£0.00
£200.00
£400.00
£600.00
£800.00
£1,000.00
£1,200.00
£1,400.00
Mon
thly
Cas
h
pos
itiv
e ga
ins
(£)
Monthly repayment schedule (3yrs)
Leasing provides the customer with 100% tax allowances on every lease payment.E.g. On a £1000 monthly lease payment, if a company pays 25% corporation tax on its profits, it will receive £250 back in the form of tax-not-paid. This makes the real
value of the lease payment only £750
Tax relief
Cash positive gains thru savings
1 3 5 7 9 11 13 15 17 19£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
Bala
nce
of in
com
e fr
om in
vest
men
t(£)
No. of Monthly repayments
Tax allowances bring huge benefits!Hence, the approximately £250 a month tax benefit amounts to £000’s extra revenue in-
come over the period.
‘Lead With Leasing’ Integration Process
(4) Clear Support
(3) Train & Incentivize Sales Staff
(2) Integrate tools
(1) Management Commitment
4) Dedicated, experienced, qualified EE support staff. Clear informs & negotiates with funders, 24hr access to our system and your deals, can liaise with customers if requested.
3) Free sales staff training programme, full Sprint training, empower Sales team with tools, skills & knowledge to give ability to increase sales
2) Clear Partner webpage – Lease Quotation Letters, demonstrate cash-positive payments, Mobile App, integrated reports
1) With full management buy-in into Leading With leasing, you reap the full benefits from your sales staff
Multiple Funders Clear You the
supplier
Sprint app and partner webpage
Clear proposal
Credit clearance
The Process Flow
Our Innovative Mobile Application
The ability to upload new quotes, view saved quotes or view quotes that you have already uploaded.
Simply select the technology you wish to supply, along with a short description of the model etc.
You are able to manipulate the term and payment frequency, allowing you to adjust the rental based on your customers budget.
Return to saved quotation, allowing you to amend, send the quote to the customer or to upload to the team at Clear Asset Finance.
With our newly developed mobile application, you are able to provide on the spot quotations to the customer. We will incorporate your rates into the application, allowing you to be confident that the indicative rates provided are as accurate as possible [subject to credit clearance]. You can then view saved or uploaded quotes, make amendments, send the quote direct to the customer etc.
We have worked hard to make sure the application is supported by many operating systems, and you can be assured in knowing that the most popular devices are supported [Android, Windows desktop, iPad, iPod, iPhone etc.].
Making Each Quotation Personal
We want you to be as prepared and confident as possible when proposing a lease option to the customer. Further to the above tools, we will provide a bespoke and personalised lease quotation letter, outlining the benefits of leasing and diagrammatically portraying the benefits of leasing as opposed to a cash purchase. The feedback we have received is that this is a very useful tool and allows the customer to visually see the benefits of leasing.
Customers pay gradually in instalments, retaining liquidity in their business, so they can gain interest, or invest in their core business
Customers can afford to do additional projects, either now or during the lease term, because you’ve spread their costs
Their investment is future-proofed – customers can upgrade to new higher-efficiency/profit equipment whenever they want
Lower ‘sign-off’ levels for the customer, empowers decision making at lower management, speeds up decisions
Tax advantages – customer enjoys writing down allowances on each payment
Additional Benefits Of Leasing;
Sales Support
We understand that in order to for finance to be successful in your sales strategy, you require a first class sales support service.We are continually developing and creating sales aid tools that will help you overcome objections and budget restrictions. We have a dedicated ‘green’ division who are focussed solely on supporting you to convert sales through the use of finance.
Imbedding Finance Into Your Sales Strategy
Clear Asset Finance- An Overview
4 Directors’ collective 60 years leasing experience Industry knowledge and experience - Masters-level ‘green energy and
energy efficiency’ qualified, background in leasing and in implementing green building standards tools with the Green Building Council
A wide range of over 20 banks/lenders experienced in funding ‘green’ projects –and at competitive rates
More flexible and efficient credit rating assessment than CT/Siemens and Salix for your customers
Credit decision often within 4 hours for leases Electronic Data Interface between you, Clear and the funder – secure and
efficient process Innovative sales-aid tools
Should you have any feedback, ideas or general queries, please just get in touch.
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