Subscription-Based Finance
Subscription-based finance is very similar to a normal lease rental. It allows your B2B customers to pay for your products and services through a series of equal installments.
This means that a subscription will include an assortment of both products and services. However, the services tend not to include training, support, maintenance, or consultancy.
This is because bundles which have one of these ‘supporting’ services are labelled as a ‘managed service solution’. This type of package has its own specific financial offering.
Subscription-based finance also differs from a lease because legal ownership will not be transferred to your customers. This means that they will simply pay to use the products.
Once your customer’s agreement comes to an end, you can then offer them a renewal or an upgrade. This will increase your customer retention, as well as their lifetime value.
Subscription-Based Finance
What is Subscription-Based Finance?
Subscription-based finance is very similar to a normal lease rental. It allows your B2B customers to pay for your products and services through a series of equal installments.
This means that a subscription will include an assortment of both products and services. However, the services tend not to include training, support, maintenance, or consultancy.
This is because bundles which have one of these ‘supporting’ services are labelled as a ‘managed service solution’. This type of package has its own specific financial offering.
Subscription-based finance also differs from a lease because legal ownership will not be transferred to your customers. This means that they will simply pay to use the products.
Once your customer’s agreement comes to an end, you can then offer them a renewal or an upgrade. This will increase your customer retention, as well as their lifetime value.
Why should you offer a subscription?
The most common obstacles which B2B salespeople come up against are ‘budget objections’. When you offer your customer a finance payment option at the point-of-sale, the limits of their budget are no longer a problem.
Removing budget objections from the negotiation process means that your customers will spend less time hesitating over the cost. And if they’re trying to get a cheaper deal, they have less of an excuse to procrastinate.
One problem that B2B salespeople encounter, which often stems from budget objections, is ‘discounting’. But when you avoid budget objections through point-of-sale finance, you also side-step giving out these discounts.
Customers who have chosen to pay through point-of-sale finance can add to their solution with small increases to the cost-per-month. As a result of this, up selling and cross selling becomes very simple and easy.
When you offer your products through a finance payment option, you will have more chances to contact your customer. This will give you more opportunities to show off your customer service and earn customers’ loyalty.
Even though the customer pays in a series of manageable installments, you will be paid in full and upfront. This is because we invite a lender into the transaction who pays you and collects the customers repayments.
Why should you offer a subscription?
The most common obstacles which B2B salespeople come up against are ‘budget objections’. When you offer your customer a finance payment option at the point-of-sale, the limits of their budget are no longer a problem.
Removing budget objections from the negotiation process means that your customers will spend less time hesitating over the cost. And if they’re trying to get a cheaper deal, they have less of an excuse to procrastinate.
One problem that B2B salespeople encounter, which often stems from budget objections, is ‘discounting’. But when you avoid budget objections through point-of-sale finance, you also side-step giving out these discounts.
Customers who have chosen to pay through point-of-sale finance can add to their solution with small increases to the cost-per-month. As a result of this, up selling and cross selling becomes very simple and easy.
When you offer your products through a finance payment option, you will have more chances to contact your customer. This will give you more opportunities to show off your customer service and earn customers’ loyalty.
Even though the customer pays in a series of manageable installments, you will be paid in full and upfront. This is because we invite a lender into the transaction who pays you and collects the customers repayments.
What can you sell with a subscription?
You can use subscription-based finance to sell a wide range of products and services. From hardware and software, to manufacturing and plant equipment. Here are some common examples:
Office Equipment
Hardware, software, telecommunications, security systems, refurbishments, and office furniture.
Plant, Machinery & Garage Equipment
Cutting machines, drilling machines, compressors, hydraulic lifts, conveyors, and foundry equipment.
Medical Equipment
CT scanners, ultrasound scanners, dispensing robots, nerve monitoring systems, and PMR software.
Surveying Equipment
Commercial drones, propellors, batteries, gambles, cameras, microphones, and mapping software.
Renewable Energy Equipment
Solar panels, biomass boilers, ground source heat pumps, air source heat pumps, space heating, and LED lighting.
Commercial Vehicles
Heavy goods vehicles (HGVs), delivery vans, company cars, cranes, forklifts, tractors, and excavators.
What can you sell with a subscription?
You can use subscription-based finance to sell a wide range of products and services. From hardware and software, to manufacturing and plant equipment. Here are some common examples:
Office Equipment
Hardware, software, telecommunications, security systems, refurbishments, and office furniture.
Plant, Machinery & Garage Equipment
Cutting machines, drilling machines, compressors, hydraulic lifts, conveyors, and foundry equipment.
Medical Equipment
CT scanners, ultrasound scanners, dispensing robots, nerve monitoring systems, and PMR software.
Surveying Equipment
Commercial drones, propellors, batteries, gambles, cameras, microphones, and mapping software.
Renewable Energy Equipment
Solar panels, biomass boilers, ground source heat pumps, air source heat pumps, space heating, and LED lighting.
Commercial Vehicles
Heavy goods vehicles (HGVs), delivery vans, company cars, cranes, forklifts, tractors, and excavators.
Access the Synergi Partner Portal
Closing a B2B sale has never been easier, thanks to our multi-award winning Synergi Partner Portal. This is a FREE sales tool, which has access to more than 100 UK and European lending streams. The Synergi Partner Portal allows you to do four things:
Access the Synergi Partner Portal
Closing a B2B sale has never been easier, thanks to our multi-award winning Synergi Partner Portal. This is a FREE sales tool, which has access to more than 100 UK and European lending streams. The Synergi Partner Portal allows you to do four things:
The Synergi Partner Portal
Access to the Synergi Partner Portal is completely free of charge. We won’t request a monthly (or an annual) subscription fee. And we won’t take a chunk of your earnings.
Vendors who used our portal reported a 63% uplift in sales conversion. You will only gain from adding finance to your process. Offering finance will never cost you a sale.
And speaking of processes, our portal follows a very simple one. First, you will create a bespoke finance quote. After that, you can carry out a credit appraisal on your customer.
Then, once you and the customer are both in agreement, you can convert the quote into a deal. This deal can then be tracked in the portal, whilst our lenders are underwriting it.
And finally, the customer can e-sign their documents to speed up the payment process. A point-of-sale finance transaction could therefore turn around in as little as 24 hours.
Quick finance quotes
Identifying your B2B customer has never been easier, thanks to the Synergi Portal. And this is because our system is integrated with Companies House.
Companies House is the government’s official list of businesses, meaning that customers automatically appear when you type their names into the portal.
The system is also designed to produce a bespoke finance quote. This will include your company logo in the top right-hand corner of the document.
Instant credit appraisals
What’s more, the Synergi Partner Portal is integrated with Credit Safe. Credit Safe is both a credit reporting company and a business intelligence database.
You can then request an instant appraisal of your customer. But this appraisal is only summative, meaning that it leaves no footprints on their credit history.
You can therefore see whether a certain company would be a good customer for you, without hindering their future ability to be approved for finance.
Convert quotes into deals
When your customer decides to pay through finance, you can easily convert a quote into a deal. This is a signal to us that the deal is ready for underwriting.
At this point, we’ll need to ask for a few more details. What are we financing? Who do we need to speak to? What is the customer using this product for?
This allows our brokers to do their due diligence and answer any questions which underwriters might have. It also helps us to pick an appropriate lender.
Track your deal
Once you convert a quote into a deal, it’s placed into the care of our dedicated account managers. You can then log into the portal and track its progress.
This provides you with the visibility that you need to see your transactions through. You can also contact your broker with questions, or for an update.
All our partners are assigned their own account manager. They will then be given their details. That way, they’re always speaking to the same person.
Get paid quickly
And finally, all of our finance transactions are completed through e-signable documentation. This makes the closure of your deal both simple and secure.
You can upload invoice instructions to the portal before your products are delivered. Invoice instructions tell the lender where to send their payment.
Once invoice instructions are uploaded, this will trigger a payment from the commercial lender to arrive in your business’s bank account within 24 hours.
The Synergi Partner Portal
Access to the Synergi Partner Portal is completely free of charge. We won’t request a monthly (or an annual) subscription fee. And we won’t take a chunk of your earnings.
Vendors who used our portal reported a 63% uplift in sales conversion. You will only gain from adding finance to your process. Offering finance will never cost you a sale.
And speaking of processes, our portal follows a very simple one. First, you will create a bespoke finance quote. After that, you can carry out a credit appraisal on your customer.
Then, once you and the customer are both in agreement, you can convert the quote into a deal. This deal can then be tracked in the portal, whilst our lenders are underwriting it.
And finally, the customer can e-sign their documents to speed up the payment process. A point-of-sale finance transaction could therefore turn around in as little as 24 hours.
Quick finance quotes
Identifying your B2B customer has never been easier, thanks to the Synergi Portal. And this is because our system is integrated with Companies House.
Companies House is the government’s official list of businesses, meaning that customers automatically appear when you type their names into the portal.
The system is also designed to produce a bespoke finance quote. This will include your company logo in the top right-hand corner of the document.
Instant credit appraisals
What’s more, the Synergi Partner Portal is integrated with Credit Safe. Credit Safe is both a credit reporting company and a business intelligence database.
You can then request an instant appraisal of your customer. But this appraisal is only summative, meaning that it leaves no footprints on their credit history.
You can therefore see whether a certain company would be a good customer for you, without hindering their future ability to be approved for finance.
Convert quotes into deals
When your customer decides to pay through finance, you can easily convert a quote into a deal. This is a signal to us that the deal is ready for underwriting.
At this point, we’ll need to ask for a few more details. What are we financing? Who do we need to speak to? What is the customer using this product for?
This allows our brokers to do their due diligence and answer any questions which underwriters might have. It also helps us to pick an appropriate lender.
Track your deal
Once you convert a quote into a deal, it’s placed into the care of our dedicated account managers. You can then log into the portal and track its progress.
This provides you with the visibility that you need to see your transactions through. You can also contact your broker with questions, or for an update.
All our partners are assigned their own account manager. They will then be given their details. That way, they’re always speaking to the same person.
Get paid quickly
And finally, all of our finance transactions are completed through e-signable documentation. This makes the closure of your deal both simple and secure.
You can upload invoice instructions to the portal before your products are delivered. Invoice instructions tell the lender where to send their payment.
Once invoice instructions are uploaded, this will trigger a payment from the commercial lender to arrive in your business’s bank account within 24 hours.