In an ideal world, your customers would be able to purchase without cost or budget barriers, creating a smooth and consistent sales cycle for suppliers.
However, preserving capital for operational costs, purchasing stock, identifying new products and business opportunities that may arise and be more profitable is a key driver of growth for your customers in the Catering sector.
Asset Finance vs. Online Competition, WEEE & Energy Efficient Equipment
① Online Competition
Catering Equipment suppliers are coming under increased pressure from online competitors, who are working on lower margins and competing fiercely on price.
Offering equipment finance can help remove the need to compete on price as it facilitates the sale and helps maintain margins.
② The Waste Electrical & Electronic Equipment Regulations
The State of the UK Catering Market
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The WEEE regulations were introduced into the UK following a series of European Union directives that seek to harmonise and promote safe and responsible collection, recycling and recovery procedures for all types of electronic waste.
When suppliers sell equipment on finance, customers can choose to replace the old equipment with new at the end of the term and suppliers can either subsidise the cost of the new equipment for the customer or alternatively cover collection costs based on the estimated scrap value of old equipment.
③ Energy Efficient Equipment
Cutting energy costs by just 10% is equivalent to delivering a 3% to 4% increase in profits*. As more foodservice operators look to reduce their running costs, finance acts as a great facilitator in enabling them to purchase new energy efficient
equipment without adversely affecting their cash flow.
Download our Catering Sector paper to discover in more detail how Asset Finance can help catering equipment suppliers can overcome some of the current market challenges including Online Competition, WEEE and the increasing demand for Energy Efficient Equipment.
LDF have strong history in providing finance and leasing solutions to the sector whether directly to businesses or via equipment manufacturers and resellers that we partner with.
Learn more about the LDF Partner Programme for Equipment Suppliers or contact us on 01244 525410 to discuss how you can offer your customers asset finance.