If you’ve been watching television recently, you’ve probably seen how aggressively auto dealerships and big-box shops push financing deals. For years, these guys have offered consumer finance on major purchases, and for a good reason.

Consumers may break down large purchases into manageable weekly or monthly installments with financed sales. This makes the products more accessible, allowing a larger audience to purchase them, increasing revenue.

We’re all aware of how it works. Regrettably, the skills necessary to offer client financing and comply with consumer credit regulations have been out of reach for small firms. That is, until today!

Companies may now provide quick credit determinations to clients or think about offering financing for my customers at no additional cost because of advancements in financial technology services. These turnkey financing solutions provide all of the advantages of an in-house credit system without the risk or setup expenses.

Many companies, large and small, are promoting consumer finance alternatives to entice customers to buy and perhaps boost order value and complete sales. Consumer financing has risen and will continue to expand, and businesses that do not provide consumer financing may see sales decline as a result.

Offering simple finance alternatives to clients benefits businesses: financing helps firms secure bigger contracts, close more sales, and improve their average transaction size. Because funding provides your consumers a flexible and easy method to pay for major purchases, providing a financing program may help your business attract new customers and win repeat business.

Customers don’t always have the funds on hand to pay for large-ticket items upfront or to cover the expense of substantial repairs when they occur. By giving your consumers financing online purchases alternatives, you allow them the freedom to make monthly loan payments toward their purchase, giving them additional purchasing power.

Financing programs serve both consumers and companies since it provides customers greater purchasing power and flexibility while also assisting businesses in increasing sales and improving cash flow.

The top five facts about customer finance are as follows:

Obtain Repeat Customers

Customers will be more likely to return to your firm for future purchases due to your financing program, which will help you create brand loyalty and improve revenue. Customers are more likely to return to your firm the next time they need to make a large purchase using finance if they know you provide it and understand how it may benefit them, rather than turning to a rival who may not offer the same financing alternatives.

Your financing program may benefit both your company and its consumers by assisting you in closing more sales and helping your clients in getting exactly what they want without going over budget.

Acquire New Customers

Businesses that provide financing programs expand their potential client base by making their services and products more accessible to a wider range of people. Not everyone has the funds on hand to make a major purchase, such as furniture or home improvements, right away. Financing breaks down huge assets into reasonable installments that more people can afford, allowing your firm to reach a larger pool of prospective consumers.

What Are Different Forms Of Customer Financing For Companies? - Financially  Digital

Boost Your Cash Flow

Using a third-party lender can help your company’s cash flow. You’ll get the full purchase money in your bank account within a few business days once your third-party lender authorizes your customer’s loan. Not only will this assist your firm in maintaining a healthy cash flow, but it will also eliminate any risk involved with borrowing. While we handle your customers’ monthly payments, you can be certain that you will always be paid. You won’t be held liable for the money if your customer skips payments or defaults on a loan.

Increase the Value of the Average Order

You may utilize your financing program to upsell clients, which will help you increase the average order value of your company. Show consumers how a small increase in their monthly loan payments may allow them to acquire the upgrades they desire to boost your transaction volumes. For instance, if you’re giving a customer an estimate for a kitchen remodel, you might tell them that they can switch from a marble countertop to soapstone for $20 extra each month.

Increase Sales

Financing can help your company close more sales by allowing clients to make monthly loan payments that fit their budget restrictions. You may eliminate the largest obstacle to closing a deal: the high purchase price by offering financing alternatives at the start of your sales interactions. The financing provides customers greater purchasing power, allowing them to acquire exactly what they want without paying the whole amount upfront. According to a recent Forrester research, when businesses began giving clients a point-of-sale financing option, sales jumped by 32%.

Now that you’ve learned the basics about financing, the next question on your mind should be: what type of financing should your company provide?