What Is Consumer Financing and What Are the Benefits?
Whether you’re looking for a way to upsell your products or provide your costly products and services to a wider range of customers, consumer financing is an important financial asset that you should consider for your business. Learn how to use this form of financing and some important benefits you may receive by offering this service today.
If your customer can’t immediately pay for a product or service from your company, they have few options. Most customers are unwilling to take out credit card debt for your product, and many have no other financing alternatives available. Consumer financing is a way that you can offer them a convenient payment plan that helps them afford your products.
This payment option is offered through a third-party financial institution, so you don’t have to worry about waiting for your payment to come through. A lender will offer your qualifying clients a repayment option that fits their needs, then pay you upfront to help your business grow. Don’t let late payments or lack of customer financing hold your business back.
Typically, your customers will need to qualify for this payment plan. That means that they must have a certain credit rating. Depending on your target audience, this may be a limiting factor. However, many businesses offer products to customers with a high enough credit score to take advantage of this flexible financial tool.
You’ll also need to check if your products or services are eligible for this payment option. Typically, they need to be a significant enough investment for your lender to gain from the interest of the financing. Small purchases and inexpensive services may not qualify for customer financing.
After switching to this form of financing, many businesses see an increase in sales and an increase in upselling. Customers with access to payment plans are most likely to invest in premium options, or make a purchase that they otherwise don’t have the capital to afford. You’ll be more likely to encourage a sale, and more confident that your major cost isn’t too much of a financial burden for your customers to afford.
Ask a trusted lender today about consumer financing and find out if your business qualifies. Use this dynamic tool to offer your products and services to more customers in more places. Don’t let the upfront cost of your products turn away valuable business, but help your customers invest in quality products affordably.