If you are doing fit-out and refurbishment work in the UK interiors market, have you considered offering your customers the option of leasing the cost of the work? It can avoid them having to pay the full cost of the work immediately, it helps you get your money more quickly, can freeze out your competition, and can also protect your margins.
Leasing is an increasingly popular funding option for businesses moving or refurbishing their office. It is widely recognised that suppliers and contractors who introduce a leasing option alongside total project value can achieve significantly better sales revenue and margins than those that don’t.
So, why offer a lease finance option?
- It can help you sell more, by spreading the cost of the work over several years. It also means your customer can have the job they want, rather than being restricted by lack of capital.
- Having affordable monthly payments means your customer may not pressure you to offer discounts. This in turn means that you can protect your margins.
- The project specification can be upgraded, and the scope extended to include items that may have not been affordable on a capital outlay basis.
- Arranging the finance can be a much quicker process than applying to a bank for additional sources of funding. It also means the client can retain working capital in the business for other important investments.
- Once the project is complete, funds are released to you immediately. It also reduces your exposure to bad debt.
- Leasing provides you with a competitive edge against your competition, and may be the difference between winning and losing the project.
- It’s a very simple process – all the paperwork is done for you.
- Introducing a funding option that has wider beneficial implications for your clients business means they get the project they really want.
How does offering a lease option benefit my customers?
- Leasing maximises your client’s cashflow, which is clearly a massive benefit.
- The cost of the project can be spread over several years, reducing monthly payments to an affordable level.
- Leasing provides fixed monthly payments, which means your customer can easily budget.
- Payments are 100% tax allowable.
- Existing bank credit lines unaffected.
FAQ’s
How can I introduce leasing to my customers?
The concept of leasing should be well known to your customers. After all, many of us do it for our cars or other major purchases. The major thing we find is that not many customers are aware that it is possible to fund the project in this way, so simply explaining that the cost can be spread over several years should stimulate interest and further discussion.
My customers never ask for a lease option, why should I offer it?
Typically, finance can be arranged for everything including office furniture, partitioning, electrical works, flooring, heating & cooling systems, ceilings, and lighting. Lease packages can also encompass other aspects of the office environment including computer hardware and software, telecoms, audio visual equipment, security systems and photocopiers. The best option is to engage early in the project with a lease provider, and build this into your discussions with the client.
Who can I offer leasing to?
A lease option can be offered to any company with a registered UK office, from start-ups or small SME’s to Limited Liability Partnerships (LLP’s), limited companies, PLC’s and not-for-profit organisations. Clients can also be from a wide variety of business sectors including leisure, hospitality and retail.
How can I start offering lease finance?
- Simply introduce the lease option to your client at the project outset.
- This finance alternative can often change the scope of a project, so the earlier it is introduced the more choice your client could have.
- It’s easy to incorporate into your existing quotation system.
- If your client is interested, pass their details on to your finance partner, who can start the process.
- If your client is a non limited company, speak to your finance provider, as this has separate implications under the Financial Conduct Authority (FCA).
- Your finance partner will raise and manage all paperwork and necessary documentation, and liaise with the client in a professional and efficient manner.
- Your finance partner will keep you informed at every stage throughout the whole process.
- Your finance partner will pay your invoices to your agreed payment schedule.
- You get paid quickly and with no risk of bad debt.
So, as you can see, lease finance has a huge range of benefits for you and your customers. If you would like Office Glass to put you in touch with a specialist lease finance company offering this facility then please get in touch with us.