Boost Your Sales By Adding a Consumer FInancing Program
Credit is the way of the world, both for you and your customers. That’s why so many businesses across a wide range of industries find themselves benefiting from participation in a consumer financing program. If you have never considered one for your operation before, they are essentially store credit, but backed by a bank. Much of the time, there’s either a program issued or store-issued card involved, often backed by a major credit card company. In a few cases the financing works more like a short-term loan, and there is no card. Many merchants, especially those that sell high cost items with long operating lives, find that these programs boost their overall sales.
How a Financing Program Works
Today’s programs are typically backed by lenders that provide consumer financing to a wide range of customers. As lenders, they have the infrastructure to do fast credit checks and approvals without adding to your operating costs. Your customers get a direct path to financing that emphasizes access to as many people as possible, and you get to enjoy closing a sale with someone who might otherwise be incapable of accessing your goods and services. There are a lot more industries using these arrangements than there used to be, because home contractors, dental practices, and other niche businesses are finding they also help customers access the services they need in a timely way. Some private schools are even using them to structure payment plans for tuition. The programs adapt to your business model that way.
How To Get Started
The first step to setting up an easy to administer consumer financing program is finding the right lender to partner with. Each one offers a range of program options, which define the range of customer credit scores that will qualify, the maximum size of a credit line, and the incentives available to new customers. Look for one that fits your business model, and consider the options fully as you do. Would it be better with a zero percent interest grace period, or with a grace period that defers all payments but provides a shorter window? Are you looking to provide last resort credit or a concierge program for shoppers with great credit reports? Lastly, would you do better with a single program, or with a tiered setup that allows you to serve customers at many different credit score levels.
Talking to representatives of each program can help you better understand the details that define how they work. Get your research started today to help your customers get the financing they deserve.
