How Do I Offer Packaging Equipment Financing to My Customers?

There is no doubt that offering leasing can help increase your sales.  It won’t convert your cash paying customers, but it can help save transactions that would otherwise be lost due to capital budget/cash flow constraints. Selling a payment structure is easier than selling a total price. Offering leasing doesn’t cost you anything and you get paid in full just like a cash sale. So the real questions become “How do I offer financing?” and “When should I offer financing?” How do I offer packaging equipment financing? The “how” is incredibly easy and only takes a few seconds. Using our Payment Calculator, enter the equipment cost and click “Calculate”. …That’s it!... Read More

Closing More Packaging Equipment Sales – Overcoming Capital Budget Limitations

Prospecting isn’t easy.  By the time you get deep enough into your sales process to actually present your packaging equipment to a serious prospect, you have invested a huge amount of time and effort. So it makes sense to squeeze the maximum potential from serious prospects you have already invested in. The key to success in sales is identifying the pain behind the buying decision. Let’s focus on a common reason why serious prospects don’t convert to sales:  “I don’t have room in my capital budget.” How do you overcome this?  Obviously, lowering your equipment cost is not ideal, and it won’t solve your customer’s problem with spending a large cash outlay. The... Read More

Packaging Equipment Leasing and Financing

Over 75% of US companies use some form of financing when acquiring equipment — for good reasons. Financing – particularly leasing – allows them to Overcome capital budget limitations. Preserve cash flow. Conserve bank lines of credit for when they need them the most. Achieve their ROI through labor/material savings with affordable monthly payments. Pay for equipment with future profit instead of working capital. Take advantage of available tax benefits. Defer sales/use tax by paying it over time with monthly lease payments instead of up front with the purchase. Why does working with a specialized lender matter?  Won’t any lender do?   When searching for lenders for... Read More

How leasing reduces equipment payback period to zero

When we acquire a piece of packaging equipment, we do so because it will help us make more money. The purchase of a stretch wrapper, for example, will result in lower labor costs, decrease material usage, and better secure our products during the shipping process. The purchase of an automatic bagger will increase revenue by scaling up production. In both scenarios – lower costs and higher revenues – we see a significant increase our company’s cash flow. Let’s say we spend $45,000 on a flow wrapper, and that flow wrapper increases our cash flow by $15,000 a year. It will take three years for us to recoup the initial $45,000 investment. Those three years are the payback period. Until... Read More