Today’s consumers often seek to purchase big-ticket items, such as cars, jewelry and furniture, without having the cash at the time of purchase. Providing customers with financing options can provide your business with just the boost it needs to compete with larger businesses.
Offering consumer financing could allow your business to open up to a whole new set of customers by allowing for affordable monthly payments rather than one up-front payment. Customers who lack the funds to make large purchases with cash are more likely to shop in stores that offer financing options they can afford. Some customers specifically target stores that offer financing, so you may currently be missing out on a huge market by not offering financing options.
Providing financing options will allow your business to remain competitive in a time when so many small businesses go under as a result of big-box stores. Many businesses offer incentives to customers using their financing program to make their purchases. Financing incentives can help boost sales and gain customer loyalty.
Keep Cash Flow High
Small business owners often believe offering financing options will negatively impact their cash flow. While this can be true in some instances, there are currently options from third-party lenders that perform their own credit checks and provide up-front payment to businesses. In this case, the third-party lender takes on the risk of default, and your business has the valuable cash it needs.
Boost Sales Volume
With low out-of-pocket costs at the time of purchase, customers are more likely to make larger purchases than they normally would. Salespeople have a better shot at selling more or luxury merchandise when the cost can be spread out over the next few years. Laying out the actual payments associated with various financing options allows customers to visualize how little they’ll need to budget for the merchandise they desire.
Advertise Financing Options
Advertise your businesses’ financing options to the best of your ability, and be sure to encourage salespeople to notify all potential buyers of available financing options. Customers who ventured into your business to window shop may wind up making purchases once they understand how affordably that purchase can fit into their budget.
If your business offers expensive merchandise such as cars, jewelry or furniture, offering financing options could allow your business to grow significantly. Advantages include remaining competitive, keeping cash flowing and boosting sales volume. Consider the possibilities consumer financing could offer your business.