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.

Corporate Finance Strategies For Small Businesses by James Giovinazzo

James Giovinazzo is the Best Finance Advisor in New York. When small businesses are formulating strategies for their corporate finance needs, they increasingly need to account for a changing landscape involving their lenders. These changes will potentially require small business owners to revise their approach to almost everything because of the widespread financial impact. Although managing such change is often challenging, it can lead to business growth when accomplished successfully.

As noted, banking changes will force small businesses to adjust their previous corporate finance strategies. Here are some of the most pressing banking issues that will impact several business areas in most cases:

• Zombie Banks and Other Troubled Banking Institutions
• The Need to Fire a Bank and Banker
• Difficulty for Refinancing Commercial Mortgages
• Fewer Working Capital Loan Options
• Decreasing Sales and Net Income

Even small businesses which think that everything is fine are likely to encounter the need to consider one or more of the problem areas just noted at some point. It is preferable to do engage in some advance planning rather than waiting for difficulties to emerge. The need to refinance a commercial real estate loan in particular now requires more advance planning than it did in past years.

There are several variations of four corporate finance strategies that are likely to be the most helpful for small business owners:

• Business Negotiating
• Contingency Business Planning
• Business Development and Marketing
• Improving Public Relations with Bankers

Business Negotiations Can Help the Bottom Line Immediately

The good news is that more effective negotiating can help improve the financial condition of a company in multiple and often unexpected areas. The bad news is that most business owners hate negotiating, and this is even more true when negotiations with their bank is involved.

Contingency Business Plans Should Be Formulated at the Earliest Possible Point

The whole purpose of having a contingency plan is to prepare for the possibility of something going wrong before it happens. It is literally impossible to do this essential planning too early.

Successful Business Development Can Make Everything Else Easier

While it might not be easy to accomplish, increased sales and revenues achieved through business development can minimize problems in many other areas. For example, the need for more working capital can be reduced or eliminated by increasing sales with new business proposal writing efforts.

Can Public Relations with Banks Be Improved?

Now more than ever, the use of public relations strategies by small businesses should be used to tackle all five of the pressing bank issues mentioned previously. These challenging problems will not solve themselves, and a specialized public relations approach is warranted in most cases.

Structured Trade Finance - What Does It Mean

Structured trade finance (STF), a type of debt finance, is used as an alternative to conventional lending. This form of finance is utilized regularly in developing countries, as well as, in relation to cross border transactions. The objective is to encourage trade by making use of non-standard security. STF is generally used in high-value transactions in bilateral trading relationships. As a more complicated type of finance, STF is commonly related to commodity trading.

Within the commodity sector, STF products are most prevalent. It is used by producers, processors, traders, as well as, end-users. These financial arrangements are tailored by banking organizations to meet the precise needs of the clients. STF products are primarily working capital financing, warehouse financing and pre-export financing. There are also some institutions that extend reserve-based lending, as well as, finance the conversion of raw materials into products, along with other customized finance products. In order to promote trading activities, STF products are extended across the supply chain.

STF structures are sponsored by limited recourse trade finance lines. The structure aims at offering better security mechanism and to act as an enhancement on the position of the borrower when viewed in isolation.

How Has Technological Advancements Complemented STF?

Trade credit insurance, bank assurances, letters of credit, factoring and forfaiting are some of the STF products that have been positively affected by the latest technological advancements. These products have changed due the recent developments. The massive progress in communication and information domains have also helped the banking institutions to track the physical risks and events in the supply chain between the exporter and the importer.

Why are STF Facilities Used?

Structured trade finance products are used so that the risks related to trading in specific country and different jurisdictions can be mitigated. Any transaction together with STF products help to add resilience to the trade and the same cannot be said when looking at financing the individual elements of a trade. Moreover, it allows for lengthening the payment time, strategizing procurement, diversifying funding and enhancing the ability for clients to boost the facility sizes.

What makes STF extremely attractive is that the borrower's strength in the transaction is not scrutinized as closely as compared to a vanilla loan. Here, the focus is more on the structure and the underlying cash flows. Another reason for STF's popularity is that the transactions are not reflected in the balance sheet of a company and the presence of this financing option has helped several importers to maintain flexible credit terms with exporters.

Sales First Culture is Imperative for Business Growth by Jim Giovinazzo

Jim Giovinazzo is Best Sales person in New York. Businesses that are determined to survive in the modern era need to be devoted to the "sales first" approach of business. The unfortunate truth is that in the digital era, the tried and true sales methods of even a decade ago are no longer turning into a sale. In fact, statistically, 80% of marketing qualified leads are not making the conversion to a sale.

That's a large number of missed opportunities for a business. While there is an obvious problem, there are also solutions available for businesses. When a company takes the time to connect with their sales team and better understands what is needed for their long-term success, changes can be implemented and the bulk of those missed opportunities can be rectified.

The First Steps Towards Being More Successful in Sales

Marketing and sales need to be intertwined for the long-term success of the company. The efforts of the marketing department should carry over to sales, allowing the sales team to meet the higher expectations of educated customers using the internet for research to build an understanding and better define the questions they ask. Each call and interaction should add value to the consumer and build trust.

There is also a need for an executive level professional to step in and work closely with the sales team. This individual should review the department, implement training and look for problems and weaknesses in the current setup and make certain the sales process is highly effective.

Changes Need to Happen Now

Overlooking a problem doesn't make the problem go away. With more companies noticing the disconnection between the marketing and sales departments, a need to create a balance is recognized. Creating this balance begins with reducing the interference by high-level executives concerned with driving sales through commitments to numbers. A better approach is to have a senior leader work on creating an alignment designed to help to drive sales.

Marketing Automation and CRM Aren't Enough

One of the problems is a heavy focus on CRM and marketing automation. While this can help close some of the gap between marketing and sales, since they can help to better define situations, they won't give a complete snapshot of what is still needed. It is important to do more than supplement a sales call with CRM information and provide a full understanding of the information coming out of both departments and working together to become a sales first culture is going to close the 80% of missed opportunities.

Information is Critical

It's important to understand as the world continues to change and as information becomes more readily available to your customers, you need to be armed with information to help you provide fast, accurate information to satisfy their curiosity. At the same time, creating a bridge between marketing and your sales team to create a sales first culture is imperative for the long-term success of your business.

Closing the Deal

In B2B sales, selling a high ticket, complicated service or product is often a struggle for many marketers and sales people. The hardest step is reaching decision makers and once that's complete, a sales person must tailor their pitch to get everyone on board. Since these c-suite level employees all have different needs, tailoring a product or service to appeal to everyone is sometimes difficult. A CMO is concerned about how much traffic it'll bring in. A CFO cares how much it'll cost and what kind of revenue it'll produce. And a CEO is concerned about the potential your product or service carries for the investment. Learn how to tailor your pitch to meet everyone's needs and close the sale faster!

Sales Expert Bob Beck Shares on Interactive Instruction

Jim Giovinazzo Say's Selling in this economic system is usually hard. At times actually challenging. Any minor benefit you can get more than the levels of competition could possibly be what puts you more than the goal line and into a closed deal. If that you are a gross sales supervisor, probably you ought to take a look at solutions to give your total team a enhance. Maybe you're an individual who requirements to search out a means to obtain a leg up on the level of competition. Either way, Quid Pro Quo Selling might be the advantage you happen to be searching for says Sales Expert Bob Beck.

A lot of mangers and people are reluctant to attempt expert sales training. That's understandable. Very typically, product sales education is just someone who will get up and rambles on for any few days about common sales techniques. Quid Pro Quo selling is diverse. We actively involve our students in their instruction. Interactive things to do bring an additional clarity and feeling of comprehending to our discussions. The QPC Series also critiques applicable event research from our huge knowledge inside gross sales marketplace. Income professionals will learn how to place the relevant tactics we talk about to practical use stories Bob Beck.

"The interactive tactic operates well for both teams and individuals." Bob Beck Sales Expert explains. Managers locate that the teams we educate get certain gain out of our tactic. We all understand that there are a lot of prosperous sales people today which are reluctant to reveal their assistance, expertise and activities with other individuals. The interactive tactic we use lets the all-natural competitiveness of those people overtake their perceived ought to keep on to their private experience. If we reveal to men and women "display the remainder of us how you would close this deal", or "inform us the way you would take care of a sure consumer position", that person is likely to grant an incredibly sincere response. You receive an trustworthy response mainly because they want to demonstrate to the relaxation with the course what an expert sales man or woman they are really. Hence, this non-threatening interactive understanding surroundings is prone to generate much better success than a manager that says "hey, let's aid the other out by sharing information".

Time and again, the information we acquire shares Bob Beck sales expert, tells us that our interactive strategy sets us apart from other revenue teaching applications that people have tried. Our teaching can be a huge move up from just browsing about gross sales specialists from a book. Coaching turns into way more individual and relatable in the event the students are able to get actively involved in the training process. Also, as stated above, interactive coaching is an excellent way to put together your extra skilled income individuals to share stories of their successes with other individuals.

A lot of mangers and people are reluctant to attempt expert sales training. That's understandable. Very typically, product sales education is just someone who will get up and rambles on for any few days about common sales techniques. Quid Pro Quo selling is diverse. We actively involve our students in their instruction. Interactive things to do bring an additional clarity and feeling of comprehending to our discussions. The QPC Series also critiques applicable event research from our huge knowledge inside gross sales marketplace. Income professionals will learn how to place the relevant tactics we talk about to practical use stories Bob Beck.