A salesperson is far more likely to lose a deal to “no decision” than to competition. In a large-scale study of more than 2.5 million documented sales discussions that included both transactional and complex sales, researchers from the Harvard Business Review discovered that between 40% and 60% of deals are lost to clients who express their intent to purchase but ultimately fail to act. These clients will often go through the entire sales process, consuming the salesperson’s valuable time and resources, only to not cross the finish line.
Commercial finance brokers and ISOs looking to help prospective clients overcome indecision can do so by building genuine urgency within their sales process. Building urgency encourages prospects to make a decision to act now rather than later. The encouragement from a respected finance professional helps prospective clients make a decision quicker, and gain a better understanding of why they need what you offer them.
Building Genuine Urgency in a Professional Sales Process
Consider all the prospective clients with whom you have worked with over the last few years that may have benefitted from invoice factoring. Many of them could not have foreseen the impact the pandemic would have on their cash flow. While the pandemic and its economic aftermath have somewhat subsided, banks have tightened credit requirements. As a result, many clients who may have qualified for a bank loan now cannot. If you had used genuine urgency to close a factoring facility during the pandemic or afterward, those clients whose cash flow has been affected would be in better financial shape today than many of their peers.
Having credibility as a valued commercial finance professional will allow you to break through the noise in a market and help your clients achieve their cash flow goals by creating liquidity against their accounts receivable with a factoring facility.
The following are effective tools to build genuine urgency within your sales process:
- Value Proposition: Communicate your value proposition clearly. Your value proposition is the unique service or product that your prospective client can benefit from. It’s what differentiates you from the competition and makes you attractive to prospective clients. Your value proposition is the quickest way to communicate what you do to potential clients, and it is often your prospective client’s first impression of you.
- Be a Good Listener: Professionals ask a lot of questions. Identify the prospective client’s pain points and goals. Understand what challenges they face and what they want to achieve. This can help you tailor your value proposition and show how your financing solutions can address their specific needs and goals. Being a good listener and asking a lot of questions can help you develop a rapport with the prospective client and increase their trust in you.
- Relevant Product Information: Provide the prospective client with relevant information. Be careful that you don’t overwhelm the prospect with too much information. Unnecessary information can hinder the prospect’s ability to make a decision. Highlight unique features or limited-time offers related to the products, such as price breaks, exclusive terms available for a limited time, high demand from other clients, or potential risks of delaying decisions. This can help you motivate them to act quickly and avoid missing out on a valuable opportunity. Use scarcity to your advantage. When people perceive scarcity, they are more likely to take action to avoid missing out.
- Call to Action: Provide a clear call to action for your prospective clients. This can help you guide them to the next steps in the sales process and move them closer to closing the deal. You can do this by setting a deadline, offering an incentive, or requesting a commitment. Use language like “Apply Now for the Limited-Time Offer” or “Only Three Spots Left” instead of generic “Learn More” or “Get Started.” Feature a call to action in your marketing literature, and avoid including extraneous material that may distract the prospect.
- Implied Urgency: Leverage the concept of fear of missing out (FOMO) by emphasizing the potential value potential clients might lose if they delay. Even if real urgency isn’t feasible, you can still leverage it effectively by using phrases like “Act Now” and “Limited Availability” in your marketing materials. Urgency doesn’t work, however, if you haven’t earned the trust of the prospective client. Back up your claims with relevant data and testimonials from previous or current clients. This helps to demonstrate your credibility and expertise, as well as the benefits and results of your financing products. Urgency must be genuine and should be used ethically and authentically. Avoid appearing pushy or desperate. Focus on a genuine sense of urgency that is in sync with the financial product benefits and your value proposition.
- Make Closing the Deal Easy: Make it easy for prospective clients to close the deal directly and distraction-free with documents that can be signed electronically with DocuSign. Making it simpler for prospects to close and finalize their purchase decision helps to overcome last-minute cold feet.
- Simple and Straightforward: Make the process from the sales presentation to closing as simple and straightforward as possible. Use plain English and avoid making it more complicated than it has to be. Don’t underestimate how overwhelming a financial presentation can seem to a non-financial person.
- Follow Up: If a prospective client is a fence-sitter and cannot make up their mind – don’t give up; follow up. Use email, phone, or text messages to remind prospective clients of your value proposition and changes in the marketplace to help boost urgency.
Partnering with the Right Funding Resource to Help Your Clients
Selecting the right funding method and funding source to work with is essential to keep the momentum going and fulfill client expectations. Invoice factoring is faster, easier, and more flexible than business funding from other traditional lenders. Approval is based primarily on the credit strength of the client’s customers, not the client’s credit profile, so deals are more likely to be approved and approved faster. Factoring account receivables can close serious gaps in cash flow and allow the prospective client to continue operations without worrying about how to cover necessary expenses.
Not all invoice factoring options are alike, however. Capstone knows that every business is unique, and each deserves an individual approach to solving their cash flow shortfalls. What makes Capstone different from so many other resources that offer business funding is we have the experience and knowledge in structuring transactions. No matter the industry, Capstone understands the complexities involved and has the relationships, necessary capital, and ability to rapidly deploy capital to clients needing immediate cash flow.
Capstone is also able to assist its clients by offering a number of other services, including:
- Purchase of accounts receivable with or without recourse
- Collection of accounts receivable
- Underwriting of credit lines for client’s customers (credit risk protection)
- Non-legal contract review
- Bid review and support letters
- Funds control – making sure the client’s vendor/suppliers get paid
- One-on-one business consulting and mentoring
- Budgeting and forecasting support
- Access to bonding
- Leadership and executive development
Choosing the right commercial funding resource to partner with is an important decision that should be considered carefully. Capstone’s invoice factoring programs can ensure your clients have adequate access to cash flow to fuel growth and their long-term success. Contact Capstone at (212) 755-3636 to find the best funding option for almost any business.
