Why Offer Financing?

From purchasing a vehicle to shopping on Amazon, companies are pushing monthly payments over the total purchase price.

In a recent publication from Forbes/Forrester Research, it was determined that companies who provide a financing solution during the sales process increase their total sales by 30%. In todays competitive world, we believe most of you can appreciate that number. Speaking of competitive, did you know our financing solutions are competitively-bid thanks to our Sourcewell awarded contract? What this means to your customers is that our funding meets competitive bid requirements and saves time and money over RFP’s and/or board meetings. Breaking a procurement project down into payments creates a manageable experience especially when your customers can pull funds already allocated in their operating budget to make these payments and eliminate the need to approve a new budget.

What makes NCL Government Capital financing different? Our most common solution we provide is a tax-exempt municipal lease which has non-appropriation built in. What this means to your customer is that if they fail to budget for future payments in the following budget cycle, the items/equipment gets returned to us. While this rarely occurs, it is the non-appropriation clause that differentiates NCL and helps many agencies expedite the procurement process as they don’t have to rely on the lengthy bond process or solicit bids.

You hear it, we hear it … “we don’t finance, we pay cash.” Well, if that was 100% true, financing companies wouldn’t exist. The ELFA (Equipment Leasing and Finance Association) has stated that over 70% of companies utilize some form of financing when purchasing equipment. While many do in fact have the amount budgeted, it typically results in funds being pooled and/or saved up over a period of time. This opens the door to “the cost of waiting” and over recent years, this has included rising interest rates, a considerable spike in cost of goods and issues resulting in supply chain disruptions. So, regardless if customers have funds readily available, it can be considered best practice to use those funds as either a down payment to lower the payment or to simply make manageable payments and keep on hand cash at a healthy level. Additional data from AGLF (Association for Government Leasing and Financing) shows the amount of government leasing has doubled over recent years. With a TEML, your customer experiences increased purchasing power while you both benefit from a “turnkey” process that saves time and money resulting in both parties experiencing higher satisfaction.

Download our flyer below and start incorporating NCL into your sales process today! We would love to provide quotes to your customers and get you onboard with our exclusive NCL Vendor Portal!