Why Consumer Financing Increases Sales
Businesses are always looking for ways to increase sales. However, marketing campaigns do not always do the trick. Recently, businesses across all industries have picked up on a solution that was once relegated to large retail chains and car dealerships in order to draw in new customers, and to get existing customers to purchase more. That solution is consumer financing.
Why Customers Love Consumer Financing
Many customers will often forego what they need or want, especially if the cost is beyond their comfort level. Consumer financing allows customers to spread out the total cost of a purchase over monthly payments, making larger purchases much more manageable. The business still gets the total amount they are owed, while the customer has easy payments, instead of having to juggle personal finances to pay the total cost in one lump sum. Suddenly, the high end products and services become much more attainable with consumer financing.
Consumer Financing Gives People Buying Power
The amount of financing a customer receives is based on their individual credit scores. The business can set up financing simply by taking the customer’s information and placing a simple call to the financing company in order to have the credit check done. The whole process takes minutes, and the customers can receive approval while they shop. This type of financing also acts like a revolving line of credit, so as customers pay down what they owe, they replenish their spending limit, which means they are inclined to purchase more from your business.
Consumer financing acts as its own marketing campaign. By offering this type of financing, businesses can extend “special offers” to their customers – like no interest on payments for X months, or in-house gift cards with each approval or referral. This can be used to boost a company’s customer base (along with sales) and can be used to target certain items that people normally think is out of their price range.
Easy To Set Up
Consumer financing can be arranged and implemented very quickly by commercial finance professionals. Payment made by customers can be accepted online, over the phone, or right at your business. This type of financing has grown beyond storefront retail, and now construction companies, niche startups, IT groups, contractors, and even medical facilities are offering financing to make payments easier for their customers, and to spread out the cost so getting the things they need becomes easily attainable.