How to Leverage Consumer Financing for Your Business
Consumer Financing can be the difference between making the sale and losing it. You’ve seen it with many large retailers, how they offer a line of credit for people to use with their store. It’s effective, too, leading to more sales and more relationships with consumers.
In short, consumer financing is very similar to a credit card. In this case, it’s an exclusive credit with your business. Consumers pay off the amount they borrowed, making minimum payments just like with a regular credit card issued by a bank or financial institution. You can use this financing to the advantage of your business.
Every business wants to increase sales. That’s a given. But how you go about it is where you can set yourself apart from the rest. For example, you may offer a yearly sale where everything is discounted at 50% off. Or, you could offer consumer financing year-round, enabling your consumers to buy what they want, when they want without worrying about having enough in their bank account. In the end, you’ll get the sale you would have otherwise missed out on.
Some lenders offer special offers such as extended payment options over a longer period of time. This may also increase your sales as the consumers will keep coming back for more of these offers. Before you select a lender, check to see if they offer these incentives to choose the one that’s right for you.
With the option to put a purchase on a credit card, consumers are more likely to buy the products. For example, many times there are options for deals such as “No interest if paid in full within 6 months of purchase.” These entice consumers and lead to online shopping carts not being abandoned. That means you actually make more sales without decreasing your prices.
When you, as a business, offer this type of financing, consumers are likely to return to you for future business. Why? Because they know you have a payment option that allows them to make a purchase easily. How they pay it off is up to them, but you see your money right away. The consumers will know you are a safe business to shop with and one they can count on. That, in turn, builds lasting relationships and creates returning customers.
Consumer financing opens a whole cornucopia of possibilities for your business, not the least of which is an increase in profits. So if you’re looking to expand your business and watch it grow, this is the path for you.