Discounting Programs to Offer a Stated Rate
Allstate Capital has the discounting programs to offer a stated rate you need to compete and win in today’s competitive marketplace. While our rates are among the lowest available anywhere, sometimes a special rate is needed for a marketing promotion, trade show, or to win a deal.Allstate Capital can do this for you and its called Invoice Discounting and many of your competitors do it every day!How does it work?
- Discounting programs should be set up in advance because you will only receive a predetermined amount of your invoice to subsidize the transaction rate.f you do these “on the fly” you risk losing money on your transactions.
- You can offer, for example, a 7.9% Financing Option or whatever you need to compete.Remember that the lower the advertised %, the greater the invoice discount (you receive less).Allstate Capital will provide you the correct discounting formulas for your marketing plan up front so you know what your margins will be.
- Discounting is VERY popular at trade shows as a trade show special!
- Transaction size does impact the amount funded. While we can discount small deals, we recommend selling over $15,000 per transaction to maximize your invoice amount.
- Discounting with minimum purchase amounts (like $15,000 or more) help you upsell more of your products since customers tend to buy what they need, not what they think they can afford, and they can get the best deal.
- The ideal term range for discounting is 12-36 months, however the shorter the term, the more you will receive on your invoice.
- Discounting can be combined with many other programs to offer your customers what they need when they need it. Discuss your strategies with your Allstate Capital representative today to put together a plan to win business this year!
- No RECOURSE is required! This is another tool we offer to help you win business!
- While we do not require vendors to have a National Account status with us for this program, we recommend it because the discount rate is a bit more favorable for you. Ask about the National Account program today so we can set you up! It’s free and easy!
This is how large companies in most industries, especially the car and truck markets, advertise such low rates. For example, ask your car dealer to give you the lowest cash price and the advertised 4.9% finance deal and they can’t do it because they are discounting. They can do either, but not both, but they SELL cars!