Consumer Financing Programs And Increased Sales
New and small business owners are always looking for new and innovative ways to drive sales and improve their cash flow. Offering competitive prices and holding limited time price reductions are great, but they can only go so far before they eat into the profit margin. Instead of going the traditional route, some entrepreneurs are starting to offer consumer financing programs to drive sales.
What Are Consumer Financing Programs?
Consumer financing programs give customers the ability to take the overall cost of their purchases and spread them out over manageable monthly payments. This type of funding is set up through select commercial finance companies, and can be arranged quickly and painlessly. When a customer applies for consumer financing at your business, one of your employees makes a phone call to the commercial finance company to relay the pertinent customer information. From there, the finance company will run the necessary credit checks and figure out the amount of financing available, and how much the monthly payments will be. The entire process from application to approval takes only a few minutes.
Because consumer financing breaks up the total cost for customers, higher end products and services which were previously “out of the budget” become obtainable. This increases sales, and the monthly payments ensure a steady and healthy cash flow. Additionally, consumer financing allows entrepreneurs to run specials for approved applicants, such as “zero interest for the first month,” or offering gift cards or discounts on select items. In this respect, consumer financing acts as its own advertizing, and draws in new and returning customers. Your business will also increase its customer base simply for offering financing options that the competition does not.
Which Businesses Offer Consumer Financing Programs?
This type of financing was once only for car dealerships and big box stores. Now, it is offered by niche startups, building contractors, medical practices, and even franchise businesses. It should be noted that consumer financing is not something that small businesses can arrange with traditional lenders, because the requirements of banks and similar institutions are only geared toward well-established businesses with impeccable credit and long financial histories.
If you want to increase sales and reap the benefits on a strong and healthy cash flow, consumer financing might be the right solution for your business. To learn more about this and other financing strategies, call Vantage Commercial Capital at 913-543-4242. We specialize in helping small businesses grow successfully by working with them to structure and implement strategies to meet their goals.