Providing financing options for customers may seem like a decision that benefits your clients only, but this choice also benefits your company. Consumer financing programs make life easier for your customers, it’s true, but they also lead to many advantages for sales growth and revenue. How do this process work for your business and your customers? This guide takes you through customer financing step by step.
Choosing Your Partner
From a business perspective, the process of consumer financing begins when you choose a lending partner. You want a company that has significant experience in this field. It’s better for your business and your customers.
Experienced lenders can help you get terms that work for your business operations. Also, make sure to choose a respectful company. The same respect they show you is how they treat your customers during the application process.
Advertising Consumer Financing Options
Once you have customer financing implemented in your store, make sure your clients know about it. Mention financing programs online and in your store, especially in areas with large-ticket items. If you primarily sell goods to other businesses, point out financing programs when showing your clients items such as equipment and tools.
From a customer’s perspective, the financing process begins when shopping. When customer financing programs are featured prominently, clients are less likely to focus solely on price when making purchasing decisions. They know they can split purchases into manageable monthly payments, so they’re more likely to look at the features and capabilities of items, instead.
Applying for Financing
Once customers tell you that they want to get financing for an item (or your personnel points out the option for it), the next step is to complete an application. Some lenders provide app-based financing applications, while others include options for point-of-sale terminals or online checkout carts. Your personnel generally receive training for the type of application supplied.
It only takes a few minutes for customers to learn if they qualify for financing. Typically, consumer financing is easy to qualify for. Once the application is approved, you finish processing the payment, almost like accepting a credit card payment. Your business receives the full amount of the purchase price immediately. The funds are deposited in your bank account.
Clients have many options for deferred payments. They can choose comfortable terms. With financing, your customers can buy items they wouldn’t be able to afford otherwise. You can see much greater profits that way.