M a r k e t i n g t i p
Ability to accept payment by phone can help close sales, choose best terms for you
"Close the deal on the first call" and "take the deal off the streets" are familiar phrases if you spend any time listening to or reading sales and marketing advice for lease brokers. Applying this advice most effectively often requires the proper tools.
Merchant accounts are gateways to instantly accept credit cards and checks over the phone. Some companies are able to create merchant accounts directly with a bank, however many companies that have similar characteristics to lease brokerages have difficulty securing a merchant account directly with a bank.
With the proper merchant account, you will be able to accept credit cards and checks by phone (likely more relevant to your business than accepting them through the Internet, although they will also do that). This allows you to "close the deal" in order to "take the deal off the street" by quickly receiving funds. It is important for numerous reasons to be 100 percent sure that the customer is in agreement with the charge; one reason is you do not want charge backs on your merchant account record.
Similar to the various term and fee structures available for credit cards themselves, merchant accounts have many different set ups. Many have no recurring fee. Almost all have a "discount rate," which is a share of the transaction amount the merchant account provider will keep from each transaction. Terms may also include a flat fee per transaction.
When shopping for a merchant account, you can take advantage of several realities of the lease brokering business model. It is likely on many deals that you will not use your merchant account at all. Odds are you will not be processing dozens of payments each month, but rather a few large transactions. It probably makes the most sense for small- and mid-size brokerages to secure an account that has a higher flat fee per transaction but small discount rate, because your transactions will be few in quantity but large in amount (as opposed to an online retailer selling $10 widgets). Also, because you rarely accept payment face-to-face, you should consider a merchant account provider who offers a virtual terminal. With virtual terminal access, you do not need to buy or lease hardware to process payments, as you can do so by simply logging in to a secure Web site.
A couple examples of merchant account providers are...
www.merchantequip.com/merchant-accounts/payment-gateway/
www.infomerchant.net/creditcardprocessing/virtual_terminal.html
Also similar to credit cards themselves, you must carefully read all the terms and fine print before choosing a service. You should look especially for commitment timeframe, extra fees, equipment lease requirements, and other pitfalls. Once you have found the best provider, the ability to accept payments by phone can put into action the advice of "take the deal off the street."
SunBridge Capital does not endorse any particular merchant account provider. Determining if, when and how to use a merchant account provider is an important business decision you should make independent of this newsletter marketing tip. Carefully review all terms of any agreement, and only charge customers when it is proper to do so.
Want more marketing tips? See more.
S a m p l e d e a l o f t h e w e e k
Bulldozer leased to an established company requires little up-front and pays eight points
Established businesses can earn aggressive pricing from SunBridge Capital, especially low amounts due in advance. The sample transaction below funded earlier this week:
Average Trans Union FICO: 689
Verified time-in-business: 11.1 years
Asset: 2003 John Deere bulldozer
Amount financed: $85,000
Documents needed for credit decision: online application
Monthly payment: $2,360 (approximately 4%)
Due before funding: $3,450 (no capital cost reduction)
Requested broker commission: 8 points = $6,800
Funding status: Booked
More information on SunBridge Capital's credit programs.
Want more sample structures? See more.
S t a t e o f t h e i n d u s t r y
Do you accept checks and credit cards by phone?
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P r o g r a m a d v a n t a g e
Brokers like you have already earned thousands this month with the Trucks at Hand promotion
The September Trucks at Hand promotion is off to a roaring start, and if you haven't already, you should get in on the action. Brokers like you are matching customers with trucks, trailers and equipment from Trucks at Hand. For a select list of assets, customers can defer their next payment after funding until 2009 and earn a $600 gift card, while brokers earn ten points and their own $600 gift card, too! There is still plenty of time to get in on the action, but don't wait. For more information on the promotion, visit
www.sunbridgecapital.com/promotions/fall-2008.html
A i m i n g f o r t h e s a m e - d a y a p p r o v a l
Reminder: sellers of yellow iron must be dealers
For transactions including at least one piece of non-titled equipment, the seller must be an established dealer. SunBridge Capital will attempt to independently verify the seller's status as a dealer through various means including Dun & Bradstreet, the Secretary of State, as well as other resources available to us. In general, an established dealer has a permanent facility that is clearly used for selling heavy equipment, owns the equipment it is selling, and can produce a license and/or registration reflecting the nature of its business. Private parties, financial institutions and equipment brokers are not acceptable sellers of yellow iron to be financed by SunBridge Capital.
