A seller of construction equipment stands to gain significantly by offering equipment leasing options to their clients. Here’s how it can benefit the seller:
🏗️ 1. Increase Sales Volume
- More approvals = more deals. Clients who may not have the capital to buy outright can still acquire the equipment.
- Overcomes sticker shock. Leasing breaks a large purchase into manageable monthly payments, making it easier for buyers to say yes.
💰 2. Higher Margins & Upsells
- When customers lease, they’re more likely to:
- Upgrade to higher-end models
- Add attachments or accessories
- Purchase additional units
- Leasing can justify higher total transaction amounts.
🔁 3. Repeat Business & Faster Replacement Cycles
- Lease terms (e.g., 36-60 months) encourage customers to come back sooner to upgrade or replace equipment—building long-term loyalty.
- Instead of keeping machines for 10+ years, they cycle more frequently.
🧾 4. Simplified Payment Process
- Partnering with a leasing company means the seller gets paid quickly—often within days—while the leasing company handles the customer’s financing.
- Reduces seller’s need to manage in-house financing or payment plans.
📈 5. Competitive Edge
- Offering leasing makes a seller more attractive than competitors who only offer cash or loan options.
- Shows you’re solutions-focused, not just a product pusher.
🤝 6. Builds Vendor-Lender Partnerships
- Vendors that work with leasing companies often benefit from:
- Co-branded marketing
- Lead generation support
- Custom programs for their customers (e.g., 90-day deferral, seasonal payments)
⏱️ 7. Faster Sales Cycles
- When leasing is offered upfront, the customer doesn’t delay the sale by searching for financing.
- Reduces friction and shortens the time from quote to close.
🔒 8. Reduced Risk of Lost Sales
- Many customers walk away from large capital purchases if financing isn’t available.
- Offering leasing keeps them in your sales funnel.
