Are you a small business owner who leads a busy life and operates a tight ship? Are you constantly looking for ways to improve your business? Offering your consumers the ability to finance your products or services could be the next step of growth for your business. Over the past few years, there has been a significant increase in retail sellers offering financing options for their delivered goods or future services/products. By providing a financing option to your consumers, you can reach an entirely different market of those who are unable to pay up front but can make payments towards their purchase over time. A recent study has shown that offering consumer financing has increased average order size by 15%. Below are a few reasons as to why you should move forward with offering consumer financing for your consumers:
1. Financing opens a new market of potential consumers to be able to purchase goods or services from your business
Consumers are more willing to make a large purchase if they have available options for payment. Paying in full is a big commitment financially and the likelihood of every consumer being able to do so, is low in comparison to those who could pay over time. Also, offering a promotional financing offer like “No Interest if Paid in Full within 6 Months” is a reason why 30% of consumers choose financing.
We believe consumers who have less-than-perfect credit scores should not be excluded from being able to purchase from your business. Consider a program that allows for low monthly payments regardless of their credit scores. You should be able to offer your goods or services to all those interested, and a financing option can assist with that.
2. Easy to set up
It’s always beneficial to set up a financing program that would ensure your customers are given the opportunity to make monthly payments for their purchases, but many businesses hesitate to move forward with a finance program for fear of a complicated and time consuming setup, disrupting their everyday workflow. A good finance company will have a smooth and easy set up which allows you to offer financing for your services or goods within weeks. Be sure to look for a finance company that provides your customers with a portal so they can manage their accounts online and the finance company you choose should also have a toll free number for your customers to call if they have any questions about their account.
3. Upfront payments = Increase cash flow!
A reputable finance company will pay you out within a few business days after confirmation of your service or goods being delivered. If you’re offering a great service or goods with affordable monthly payments, don’t be surprised with the increase in referrals and repeat business from past customers. With the increase in cash flow you can reinvest in your business with more marketing or by hiring more employees.
If you have a small business then never hesitate, make a bold step today to earn more business and improve your reputation. You are also guaranteed a competitive edge when you offer to finance to your customers.