How to Offer Finance for Industrial Machinery

Why Offer Finance for Industrial Machinery?

Finance options help more customers purchase high-value industrial machinery by spreading costs over time. Here’s why it matters:

• Increase Sales: Removing the upfront cost barrier attracts a wider range of buyers, from startups to established businesses.
• Stay Ahead: Many industrial sectors expect flexible payment options, so offering finance gives you an edge.
• Build Loyalty: Customers are more likely to return if you make purchasing easier and less stressful.

"We doubled our machinery sales in a year by offering flexible finance packages. It changed the way customers saw our business." — Operations Manager, Midlands Manufacturer

Key Steps to Introduce Finance to Your Customers

1. Assess Customer Needs

• Determine which customer segments benefit most from finance (startups, SMEs, large industrial firms).
• Identify which products or machinery typically present budgeting challenges.

2. Choose the Right Finance Provider

Selecting a reliable broker is critical. Compare:

• Look for brokers with experience in industrial machinery, rapid application processes, and robust aftercare.

3. Decide on Finance Products to Offer

Popular options include:

• Hire Purchase – Customers spread payments, owning the asset at term end.
• Leasing – Customers use the machinery and return or upgrade at contract’s end.
• Operating Leases – Often for short-term access or rapidly changing needs.

4. Integrate Finance in Your Sales Process

• Train your sales team on how finance works and its benefits.
• Embed finance calculators and quick-quote tools into your website or showroom.
• Advertise your finance options clearly in all marketing materials.

Customers are far more likely to proceed when they know finance is available upfront — making finance a core part of your sales pitch is essential.

Practical Considerations for Industrial Finance

• Minimum and Maximum Loan Values: Know your provider’s thresholds (often £5,000-£500,000+).
• Credit Criteria: Most providers will review business trading history, credit score, and financial statements.
• Documentation and Compliance: Be prepared to gather documents like accounts, bank statements, and business plans.

Highlight: Compliance and FCA Regulation

Offering finance is regulated in the UK. Ensure:

• You register with the Financial Conduct Authority (FCA) if required.
• Staff are trained in regulatory responsibilities and treating customers fairly.
• Marketing finance is clear, accurate, and non-misleading.

"The right finance partner not only unlocks more deals but ensures you’re fully compliant and your customers are protected."

Tips for Maximising Results

1. Promote Finance Early: Mention it as soon as possible in talks with prospects.
2. Tailor Offers: Work with your broker to customise finance products for client types.
3. Stay Informed: Attend workshops or webinars about industrial finance trends.
4. Follow Up: Help customers through every stage, from application to approval.
5. Request Feedback: Use customer insights to improve your process and offerings.

Common Pitfalls to Avoid

• Poor Communication: Failing to explain finance terms can cause confusion and missed deals.
• Overcomplicating Offers: Stick to clear, simple finance packages wherever possible.
• Ignoring Regulations: Non-compliance risks fines and loss of business reputation.

Frequently Asked Questions

Q: Do I need to be FCA registered to offer finance?
A: Most likely, yes. Especially if you’re brokering or advertising regulated credit agreements.

Q: How fast can customers get approval?
A: Some specialist brokers can approve eligible deals within one working day.

Final Thoughts

If you want to compete in the modern industrial machinery market, offering structured finance solutions is a necessity, not a luxury. It helps you attract new clients, close more deals, and foster lasting relationships.

Ready to explore finance solutions for your industrial equipment business?

Contact Kandoo for a tailored demo on how our brokerage service can help you offer seamless, compliant finance to your customers.