The primary job of any business owner is to drive sales and make money. Of course, appealing to your customer base is at the heart and center of this goal. As a result, most business owners are faced with the job of turning window shoppers into buyers. This often requires being open to different ways to achieve this. At the heart of most consumer hesitancy is usually price and affordability. If business owners can find a way to make a product more affordable for customers, they have won most of the battle.
Customer Financing
Customer financing is one option that has been proven to turn window shoppers into buyers. If business owners can offset the cost of an item by allowing customers to pay for it over time, many customers not only make a purchase but also tend to purchase more. As a business owner, it’s up to you to seek a third-party finance company that suits the preferences and needs of your business. Some businesses opt to provide this service themselves but must be careful because they are bound by credit information laws and must provide credit checks or any other eligibility requirements on their own. This is one reason why many business owners choose to use a third-party company for customer financing. It takes the burden of the process out of their hands.
Third-Party Customer Financing
Once you’ve decided to offer customer financing as an option to your patrons, you’ll need to find a company that fits the needs and preferences of your business. Some companies offer financing options designed for big expensive purchases and others that are designed to fit smaller businesses with less expensive items. Most of these companies charge a small percentage of the sales and per-transaction fee. These companies also have eligibility requirements but not all of them are based on credit. Most companies break the payment up into three or four monthly or bi-weekly payments with a small interest fee included. Examples of successful third-party financing companies include:
Viabill: Geared toward online businesses/ No credit check/ No interests or fees/ Patrons make four equal payments
PayPal Credit: Online businesses/ Credit check required/ No interest if paid in full within six months
Financeit: Designed for higher price point/ Offers financing up to 60K/ No transaction fees or program fees
LendPro: Designed for expensive items like jewelry or cars/ Credit based/ Offers various payment plans and interest rates
Afterpay: Designed for small purchases/ Not credit-based/ No fees or interest if paid on time/ Four equal payments
Customer financing is a smart option for business owners who want to increase their profits in a way that makes buying more affordable for their customers. Contact Fortis Funding today to learn more about our customer financing solutions.