68% of shoppers looking for financing prefer researching it online. Only 49% of shoppers know they can obtain financing in-store. According to 77% of consumers, financing influences where they shop. About 100 million Americans have less-than-prime credit scores.
Consumer Finance Loan
What is a consumer finance loan or CFL? It’s a type of subprime loan that borrowers get from consumer finance companies.
Consumer finance loans are designed for those who have less than perfect credit. Also, those who have difficulty obtaining credit to purchase something that is out of their monetary range can apply for a consumer finance loan.
Thanks to a consumer finance loan, you can get financing even if banks and credit unions stay away from you. Be aware, you’ll be charged higher interest rates because the borrowers dealing with a consumer finance loan are labeled “high risk.”
A consumer finance loan can be used for purchasing an automobile, refurnishing a home, or paying off interest rates on a credit card.
If you’re interested in a retail consumer finance program, consider turning to First American Merchant. Firstamericanmerchant.com enables retailers to achieve a very high applicant approval rate. FAM is a reputable business loan provider and high risk processor that offers fast, easy, private, and highly effective application process. FAM has partnered with many industry-leading consumer finance companies to cover virtually all credit profiles, including no-credit-check lending. First American Merchant has an A+ rating with the BBB.
Consumer Financing Space
The consumer financing space represents some of the major developments. The reason is that thanks to innovative lending platforms, new opportunities to extend credit are becoming available to a wider range of customers.
For many retailers, 2016 accounted for memorable and positive customer experiences aimed at increasing engagement. Moreover, in 2016, many retailers invested in ways to get rid of “friction” from the shopping and checkout experiences. It was projected the vision would continue to dominate in 2017 as well, making consumer financing an integral part of customer engagement and frictionless shopping strategies.
This year, retailers should take into account the below-mentioned trends when considering a credit program:
- All-in-one platforms provide more financing options
- Advanced technology accounts for simple and secure integrations
- Multi-lender solutions serve more customers
- Customer-empowered customer experiences
- Omni-channel solutions improve the speed of online applications
Take the time to research and find a reliable retail consumer finance program like the one offered by First American Merchant to get ahead of the competition and increase sales.