Offering Financing Accelerates Equipment Replacement Cycles

Is there a reliable way to get your customers to upgrade their equipment on schedule? Yes—and it’s available to you right at the point of sale. Offering financing from TimePayment is the key to timely upgrades.

By the numbers:

• According to our research partner, businesses that finance equipment upgrades do so 18 months sooner on average than those who pay cash.
• It’s a win-win: buyers maintain their competitive advantages and create faster repeat sales cycles for the forward-thinking sellers who can hold their loyalty.
• Cash buyers, on the other hand, tend to hang on to equipment as long as possible to maximize their investment. (You may have heard this referred to as “sweating the asset.”)

Why it matters: When customers finance equipment, they think in terms of monthly payments versus business benefits. Cash buyers think in terms of sunk costs versus new investments.

• This psychological shift makes financed customers more open to upgrades when newer technology becomes available—in other words, more likely to convert. 

Go deeper: If you’re an equipment seller looking to prompt more timely upgrades, consider these insights:

• Payment thinking beats ownership thinking: The customer paying $800/month is more likely to upgrade to a $1,200/month solution that promises to boost ROI than the customer who paid $48,000 cash and needs to justify their investment.
• Technology obsolescence becomes opportunity: 62% of financed customers upgrade equipment before lease terms end when newer models offer compelling advantages. Meanwhile, 23% of cash buyers wait for complete equipment failure before even considering upgrading.
• Relationship continuity drives loyalty: Customers with ongoing payment relationships stay engaged with vendors throughout the equipment life cycle, leading to 156% higher lifetime customer values through accelerated replacement cycles.

The bottom line for sellers: Financing doesn’t just help customers afford equipment today—it positions them and you for faster, more predictable future sales.

• By helping customers think in monthly payments rather than total ownership costs, you create psychological conditions that favor regular upgrades over extended equipment lifecycles.