According to financial experts, the best way to improve credit is to pay bills on time each month. You, as a merchant running a tire store, can help your customers with bad credit build their credit and get new tires for their vehicle.
Merchants Can Help Bad Credit Customers Get Tire Financing
People with good credit can enjoy the best interest rates when borrowing money. As credit score goes down, interest rates go up because lending money becomes of greater risk to the company. The same refers also to those having no credit history, but can’t be said about people who have a long history of paying on a loan.
Merchants who want to help their bad credit customers get tire financing through their store should consider consumer financing options offered by reputable business funding providers like firstamericanmerchant.com. First American Merchant (FAM) is an award-winning alternative online lender and also payment processor that specializes in the high risk sector. Buying tires with bad credit can no longer be a problem if you turn to First American Merchant.
Offering Consumer Financing Options
Merchants offering consumer financing options to customers can enjoy the benefits of increased revenue. These days, both large and small businesses can get access to financing suitable for most of their current and future customers. Local businesses competing with large-scale department stores can take advantage of consumer financing programs as well.
So, offering customer financing can help merchants improve acquisition, retention, increase foot traffic, build brand awareness, and generate customer loyalty, which is of immense importance from the aspect of repeat business.
As a rule, consumer financing provides customers with 3 levels of funding:
- Primary Programs
These are offered prior to secondary (or sub-prime) options. Primary offers are associated with the most attractive loan terms, decreased merchant fees, and lowered risk for the lender.
- Sub-Prime Programs
Depending on the lender, these can be a no-risk solution, with many non-recourse loans available to merchants. Most customers are likely to get approved for this type of financing.
- No-Credit-Check Programs
These suggest no credit requirement and are called to finance consumers with damaged or unestablished credit histories, thus helping them establish or rebuild credit.
Tire merchants can enjoy great benefits by offering financing to their customers. For this, you just need to find a respectable business funding provider to turn to. Offer tire financing to mitigate your own risks and improve your revenue.