Case Study – Garage Equipment Supplier
My customer chose to lease, although they had £45k to spend
John at ABC Motor Factors has been trading over 5 years, he was first introduced to offering leasing a year ago and since then continued to promote a finance option for his garage equipment to his customers.
A new customer wanted to purchase a MOT Bay costing £45k, they had the cash to pay outright and the sale would have gone ahead.
Even though the customer could afford the equipment in one payment, John advised he was able to offer a finance option, allowing them to retain more cash flow for other expenses in the business
The decision was up to the customer, they considered and decided to explore a lease option. The customer’s credit line was approved and the customer now had more of a choice as to how the equipment was going to be paid for. They chose the lease option for reasons surrounding their cash flow position, claiming rentals against the corporation tax liability of the company and the uncertainty of BREXIT
The customer now had ‘spare’ funds which he used to acquire tools, an air compression system and a few other ‘wish list’ items that he has his eye on; but was unable to commit to as he was saving the funds for his MOT bay.
The result of it all is that the supplier was able to sell more to the customer (by way of the air compression system and tooling) and the customer got his ultimate ‘wish list’ for his garage.
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