How Vendor Finance Programs Can Boost Your Business Profits

James Giovinazzo is the best Vendor Finance is gaining more and more acceptance amongst businesses, especially equipment sellers, as a tool to increase their sales and maximize their profits. A vendor finance program also benefits the purchasers of the equipment since they will be able to obtain their machinery with minimal documentation and without wasting too much time with banks or other financial institutions.

What Is Vendor Financing?

In simple terms, a vendor financing program involves lending money to your customer so that he can purchase your equipment. For example, your prospective customer wishes to purchase $100,000 worth of your equipment. But since he is short of $30,000 cash, he is hesitating in making the purchase. As such, you stand to lose a customer. You can solve this problem by lending him money. You can offer him $30,000 for a suitable interest rate, and he can go ahead and make the purchase.

You can finance such deals either by using your own money or by entering into partnerships with various financial providers.

Vendor financing can positively influence your business in many ways -

• Increased Sales: Vendor financing is a good way to increase the sales of your products. Your salespeople may be doing everything right — identifying prospective clients, arranging a meeting, pitching your product and doing timely follow-ups. But more often than not, the client may drag out the entire process and in the end, refrain from committing to purchase your product. One of the main reasons this happens is that even though the client may be interested in your product, he may not be able to arrange the necessary finance to purchase it. As such, all the efforts of your sales people go to waste and your company suffers from lower sales figures. This problem can be solved through vendor financing. By offering finance together with the product, your sales executives will be able to close sales much faster, bringing you more profits.

• Edge Out Competition: Suppose you and your competitor are pitching to the same client, and he is unable to decide which of you to choose, offering vendor finance can easily tip the balance in your favor. When the prospective client realizes that you will not only provide the product but also the finance to purchase it is sure to give you an incredible edge over your competitor who does not provide vendor financing.
• Client satisfaction: Your client will also be happy that he does not have to go through heaps of paperwork and waste lots of time trying to meet multiple banks in order to finance the purchase of your product. In contrast, he will easily be able to purchase the product through you with minimal documentation. Not only will the client be happy, but the chances that he will approach you for more equipment in the future are very high.
• Better Cash Flow: In a traditional sale scenario, you may face difficulties in procuring payments from your customers. They might drag out the payments and may even default. This can significantly affect the cash flow of your business. But vendor financing can solve this issue since the financing company ensures that your receivables are paid off quickly once the sale is done.
• Receive Interest: Not only will you be able to make more sales and profits through vendor financing, but you will also earn interest on the sale you make. Unlike traditional sales where you receive the money for the sales first hand, in vendor financing you receive the money in installments together with the interest. As such, you will end up making more money for the sale through vendor finance when compared to a direct purchase option.

Vincent James Giovinazzo say’s If you are interested in setting up your own vendor finance program to increase your customer base, you can get in touch with the various financial institutions who do enter into such partnerships. But be sure to do a good checkup on the track record of these institutions to ensure that they do legal and fair business. After all, you obviously don’t want to associate with an ill-reputable financial organization and cause problems for you and your customers.

A Good Financial Advisor Helps You Achieve Your Financial Goals

Financial advisors are those who are experienced and trained to help people with their financial plans and investments. That includes tax arrangements to retirement plans. The financial advisor can be paid through commission or in every transaction made.

If you're partly convinced that you don't need a financial advisor, think again. Put it this way: you don't simply fix your own teeth, or diagnose what's the problem with your eyes on your own. However, you can seek for consultations on how to fix them and maintain them so you won't have to deal with any more problems in the future. That is the same thing with financial advisors. So you better be prepared on how to choose a good financial advisor, so that you can get started working on your finances, including, of course, your goals.

There simply too many investments to choose from, and without proper knowledge, training, and experience, how will you know which one is best for you through making decisions backed with thorough knowledge of these things? You simply can't pull this off on your own. You need an expert. A mistake in your decision making can affect your future entirely. So leave your future in the hands of an expert. Consult the professional advice of a financial advisor.

First of all, you must work with your financial advisor. After all, it is your goals that he will be working on. So make sure your goals are clear to him. You must remember that your financial advisor is only there to give you advice, hence the name, and not make decisions for you. You must learn how to make decisions based on the advices given by your financial advisor. Do not leave everything to him.

Your hired financial advisor must be completely aware of, aside from your goals, your lifestyle and your assets. Therefore, you must hire an advisor that you trust. Consider this when you're thinking about how to choose a good financial advisor that can successfully help you with your goals. If you don't trust your advisor with these things, you won't go anywhere. With all the things that you need to consider: your lifestyle, your retirement goals, your short term goals, cash flow, your every day expenses, etc, a good financial advisor can help you balance things out, especially in your investments. He can give you options that won't lead you to your destruction- financially.

One of the reasons why you need to have a financial advisor is time- your time. When you don't know how and what decisions to make, you may end up thinking about things for a long time and even do an extensive research just to help you make the correct decisions. That effort cannot amount to the knowledge of financial advisors that they gained for years through studies, and more knowledge gained through experience and service to other people.

These financial advisors have studied for years about business and finance. They need to be certified for them to practice their profession. They examine financial trends every day. They gather and study different funds available and other options for financial planning, budget, and retirement. They have a good grasp on these things. That's what makes them qualified and more reliable when it comes to making decisions that concern finance and investments.

You need to have a very good grasp of the industry, or else you'll end up in unfortunate situations such as selling too early or too late, settling with the wrong insurance, feeling uneasy with your decisions, etc. You must understand that things change rapidly in the financial world. Instead of doing these things by yourself, you can hire a financial advisor who can make things clear to you. Instead of doing all these things on your own, start thinking on how to choose a good financial advisor, so that you'll save yourself from all the efforts and the biggest probabilities of making the wrong decisions.

Again, you need to look for a financial advisor that you can trust. It is important that you have confidence in your financial advisor. A good financial advisor will never give advices that are unstudied. You and your family's future depends on how well you and your financial advisor work together to achieve all your financial goals.

Vincent James Giovinazzo is a best salesman and consultant in finance industry. He has long term experience in this field. He has all the skills to deal with any financial project. James Giovinazzo always provides best services to their clients. Therefore today lots of clients connected with James Giovinazzo.

If you're partly convinced that you don't need a financial advisor, think again. Put it this way: you don't simply fix your own teeth, or diagnose what's the problem with your eyes on your own. However, you can seek for consultations on how to fix them and maintain them so you won't have to deal with any more problems in the future. That is the same thing with financial advisors. So you better be prepared on how to choose a good financial advisor, so that you can get started working on your finances, including, of course, your goals.