If you’re the owner of a small company and you’ve noticed that some potential customers seem to hold back from making purchases because of not being able to pay in full up front, you may want to consider offering consumer financing. While it might sound like something only large, wealthy corporations can offer, it’s actually an accessible financing plan that even small businesses can offer their customers. The best part is, these programs often benefit both you and your customer! To learn more about them and how they could potentially help you gain customers and sales, read on.
1. It’s Convenient for Your Customers
One of the reasons this financing arrangement is usually so successful is because of its attractiveness to customers. With a simple, quick application, they’re able to enjoy purchases right away and pay in easy monthly payments spread out over time, which eases financial burden. In fact, the ease of these plans can even incentivize repeat business!
2. The Programs Are Flexible
With consumer financing, you don’t have to offer a one-size-fits-all plan – you can offer a few different types of programs for customers based on their history of handling credit. For instance, you can create a primary plan for customers with above-average credit history and offer no interest or very low interest rates; a sub-prime plan for customers with shakier credit history; and a customizable program not requiring a credit check for customers with no credit or bad credit.
3. It Creates Brand Awareness
Once word gets out about your attractive financing programs, helping your customers becomes part of your company brand. It might seem surprising, but launching financing options could end up creating greater brand awareness!
4. It Fosters Customer Loyalty
Finally, if you provide your customers a way to access your goods and services without the financial strain of having to pay everything up front, you create a positive association with your company that’s likely to stick with them. When customers have had a great experience with you and your generous financing plans, they’re more likely to provide repeat business and remain loyal to you even when offered the choice of other competitors. Helping them out could help you in the long run!
Driving up sales for your small business can sometimes seem tricky, but offering consumer financing is a simple yet effective way to incentivize your customers to support your company. With financial benefits for the customer and sales, branding and loyalty benefits for you, this financing arrangement is often a true win-win situation. Consider giving it a try the next time your sales numbers could use a boost.