Supporting suppliers with the use of finance
Finance partners offer suppliers more benefits than you might think…
Partnering with a funder can provide suppliers with more value than meets the eye; in this article we delve into the often-underestimated impact a strong relationship can deliver.
The upsides are spread across all stakeholders - the customer can spread the costs of purchases, access the latest technology, and the available tax breaks, while suppliers gain from faster deposit payments, a quicker sales cycle, and removing cost objections.
But, beyond these advantages, there is the direct relationship between the customer and the supplier to consider.
In today's fast-paced business environment, maintaining a healthy cash flow is crucial for both customers and suppliers. While the customer often focuses on their own financial stability, it's equally important to consider the financial well-being of their suppliers.
Supporting customers with access to finance options can strengthen relationships between customers and suppliers. By ensuring suppliers have access to a proactive and supportive finance partner, both parties can:
- Strengthen relationships: Recommending a trusted finance partner to your customers shows a commitment to their success. This fosters a stronger, more collaborative working relationship, leading to improved communication, and a greater willingness to proceed with the purchase. By providing options for affordability and introducing suitable payment terms through a reputable finance provider, you support your customers more effectively
- Drive innovation and growth: When customers have the financial resources to invest in new technologies, workflows, and equipment, they benefit from increased innovation and a wider range of high-quality products and services. This, in turn, benefits their own customer base. Suppliers introducing their preferred finance partner means customers can afford to update and modernise, maximising future investment opportunities
- Improve sustainability: Suppliers offering finance programs can incorporate sustainability criteria, incentivising customers to adopt environmentally friendly practices or ethical sourcing, without initial large cost restraints. This aligns with the growing demand for responsible business practices that we are all seeing being introduced in many sectors
Types of customer finance
There are several finance solutions available, each with its own advantages. Some common options include:
- Leasing: Benefits for the user without the tie of ownership
- Hire Purchase: Spread the cost over time
- Loans: Available to assist when you need funds
Why a finance partner matters
As a direct lender, we support the end customer and protects our approved partners. With recent changes driven by Consumer Duty regulations, suppliers need to adhere to these and follow key Financial Conduct Authority (FCA) requirements. Your finance partner will help ensure these guidelines are followed, providing peace of mind.
A finance partner can support a promotion on a product, help achieve business goals and provide customers with affordable finance solutions.
In conclusion
Having a finance partner can improve trust with customers and promote a more collaborative working environment for suppliers. They will also provide support for strategic business goals, by supplying the financial tools they need to thrive.
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Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.
