The highly competitive Australian transportation sector, coupled with government regulations, often requires businesses to operate with updated fleets and equipment. Reliable transport equipment and machinery is after all essential for the delivery of top-quality services. However, the financial burden of manufacturing, purchasing, or upgrading such equipment can strain manufacturers, dealerships, and end users alike.
For instance, regulatory changes in the Aussie trucking space are pushing for higher safety standards and sustainable vehicles, compelling manufacturers to invest in advanced, and expensive technologies upfront, thereby triggering a domino effect on dealerships and end users acquiring vehicles at an elevated cost.
Enter transportation equipment finance: a practical solution for manufacturers, dealerships, and end-users seeking funds for new vehicles, trucks, trailers, or any other machinery.
Flexible financing plans spread costs over time, relieving the pressure of upfront payments for dealerships, manufacturers, and end users.
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Moreover, when considering avenues for gaining a competitive edge, equipment manufacturers and dealerships may find financing solutions holding significant promise. Offering the end customers tailored financing can ease cash flow constraints and amplify their purchasing capabilities. The benefits of financing transportation equipment include an impact on sales and enhance the customer experience.
Top 5 benefits of transportation equipment financing
Benefit #1: Accelerate Sales with transportation equipment financing
It's crucial for equipment manufacturers to swiftly distribute stock through an engaged dealer network to achieve business success. Equally important for dealers is speeding up sales by offering flexible financing options at the point of sale.
Manufacturers can expedite their sales process by partnering with a financier to support their dealer networks with seamless options such as floorplan financing to enable inventory purchases, while dealers can enhance end-user experiences by offering leasing and loans with manageable monthly payments and ownership choices.
Benefit #2: Increase customer retention with transportation equipment financing
Offering financing alternatives, whether to dealerships or to end customers, serves to efficiently manage their budget and cash flow while fostering a stronger rapport compared to cash transactions or any kind of upfront payments alone.
This strong relationship often lays the groundwork for future sales. Additionally, dealerships providing leasing options to customers can lead to repeat purchases from the same business, enhancing retention and fostering customer loyalty over time.
Benefit #3: Boost revenue with transportation equipment financing
At the very beginning of the supply chain, equipment manufacturers can increase their revenue by partnering with a financier to offer floorplan financing to their dealer networks. Working with a strong financing partner on a solution like this means reduced days sales outstanding (DSO) and an increase in steady revenue.
On the other hand, further down the supply chain, dealers offering leasing options to end users mean more repeat business opportunities and a predictable pipeline.
Financial solutions such as leasing provide your customers with a choice to return, upgrade or offer to purchase the equipment. Often, customers want to stay up to date with the latest technology on the market by upgrading their equipment to newer models. This ensures not only customer retention, but also repeat purchases and contract renewals, securing a steady stream of revenue and higher margins per sale.
Benefit #4: Expand into new markets with transportation equipment financing
Venturing into new markets often poses significant challenges for equipment manufacturers and dealers, including upfront investments, extensive market research, and establishing suitable business networks.
Forming partnerships with the appropriate financing solutions provider can offer a reliable pathway to enter new markets and approach opportunities with assurance. For example, solutions like floorplan financing present an excellent option for manufacturers to access dealer networks in fresh markets and forge robust relationships in specialised sectors right from the outset. In this light, financing serves not only as a catalyst for seizing business prospects but also as a guiding support through unfamiliar territories.
Here’s a story on how our Australian team helped our Europe based partner expand into the Australian market with a robust financing solution. Watch video.
