“One significant source of headache for many businesses is the timely collection of equipment maintenance and servicing fees. Service plans present a profitable source of revenue but the billing and collection of the maintenance payment is a significant overhead requiring administration and credit control expertise. In the event of non-payment by the customer, the supplier will need to devote scarce resource to collect overdue monies or employ the use of a third party debt collection agency. All cost time, money and erode profitability.
At BNP Paribas Leasing Solutions, we partner with over five hundred independent resellers across the ICT and office equipment sectors offering finance solutions that help businesses of all sizes to invest in technology. Typical assets covered include photocopiers, telecoms infrastructure, PC’s, servers and vending equipment. One product feature being widely used by our partners is the ability to include maintenance payments within our lease contracts precisely to overcome some of the challenges highlighted above.
One reason why we believe this is a popular option for suppliers is that it helps to simplify the sales process. One contract stating the equipment rental and periodic maintenance charge ensures transparency, incurs less scrutiny and with that, a shorter timeframe to a sealed order. In addition, many suppliers do not have the resource to invest in sophisticated credit management systems or procedures and so outsourcing service collection to BNP Paribas Leasing Solutions is an effective way to reduce costs and improve cash inflow.
From a customer perspective, the key benefit is a fixed, predictable and budgeted cost. A single periodic payment that includes maintenance gives customers peace of mind, safe in the knowledge that their equipment is covered from fault and breakdown for the lifetime of the contract.
BNP Paribas Leasing Solutions has vast experience in helping technology resellers sell more product using affordable and creative finance solutions across all economic cycles. Our key market focus has enabled us to build a best-in-class sales and service team and with this experience to hand, develop innovative solutions that help our partners to better address the unique needs of their customers.”