If you want to grow your business, helping your customers to pay more easily may be an effective option. Offering credit lines is an excellent example of this. However, most business owners think that consumer financing is something that only massive national and global brands can offer. The reality is that you could get started with a consumer line of credit program sooner than you think.
How It Works
The financing is offered through a lender in something akin to a white-label solution. When you have found a lender that you want to work with, you will want to promote the financing option. Many businesses offer special promotions (such as 10% off the first purchase) for using financing. This can be a great way to get people to sign up.
When the customer wants to buy, he or she will submit an application and receive a prompt response. This either approve or decline the application. If approved, the customer can then use a line of credit with your business to make whatever purchases he or she wants.
The customer can then make payments over time to spread out the cost of purchases. This lets them spread out the cost while buying more from your business more often.
Who This Works for
Whether or not a financing program will work for you largely depends on whether you sell items that may not be immediately affordable and whether people are repeat customers. A home improvement store is a great candidate for a consumer finance program. However, a convenience store likely wouldn’t be.
It is important to find a lender that will provide reasonable terms to your customers. If they are getting excessively high APRs or overly low limits, they won’t want to use the program. However, if you can offer competitive financing options through your lending partner, you can potentially make the program very successful.
You should also look for a program that is easy to implement. Training solutions and fast enactment are important for getting this arrangement to work.
There are a lot of potential benefits to providing lines of credit. However, not every program is made equal. So, doing your research will help you to ensure your business’s success.
Do you think that a consumer financing program could help your business? Learn more today and discover how you can get started. Setting up one of these programs could open up a new line of revenue for your brand.