Did you know that customer financing can add to the average order size of your business? In fact, financing to consumers can contribute to the growth of your incremental sales. So, what’s this “customer financing?” Is it right for you?
Customer/Consumer Financing: What It Is
Starting a business is closely connected with finding ways to keep it up and running. Consumer financing is a go-for option for many businesses in this regard. It allows customers to get enrolled in a low cost monthly payment plan, without having to make the full payment at once.
With consumer financing, customers can obtain their desired products when it’s most convenient for them. So, this type of financing:
- Helps turn browsers into buyers
- Targets potential customers who’re about to make a purchase but are discouraged by the upfront payment
- Enables consumers to enjoy a low cost monthly payment plan
- Helps you sell more and enjoy greater revenue since closing deals becomes easier
- Grows customer loyalty
- Offers possibility of making some money off interest
Such financing is fine for big-ticket items, e.g. furniture or appliances. It may not be required for businesses selling clothes or smaller décor, etc., which are lower cost. With consumer financing, you’ll usually get the following programs: Primary, Sub-Prime, and No-Credit-Check.
Where to Get Customer Financing
Before applying for consumer financing, look at the following things that can help you figure out whether it’s suitable for you or not:
- The cost you pay for in-house financing
- If your customers and products are eligible for financing
- If your customers are going to use the funding
- If the program can be implemented and scaled without difficulty
- General creditworthiness of your customers
Even if your customers mostly have poor credit or no credit at all, you can still get consumer financing if you turn to a reputable funding provider that specializes in the high risk field. Consider applying to First American Merchant, a secure, affordable and trustworthy alternative online lender that offers exceptional funding solutions, including customer financing.
FAM is specialized in the high risk space and is focused on providing the lowest rates and the best terms to merchants of any type and size. FAM, which is an award-winning business funding provider, works both with small and larger retail businesses.
By the way, First American Merchant offers its own funding solution that grants merchants an unprecedented opportunity for growth. FAM is also a respectable payment processor and carries an A+ rating with the BBB.
FAM’ special funding solution enables merchants to:
- Offer 3, 6, or 12-month financing to customers
- To get paid for the whole purchase in 3 days
- Avoid any risks even if customers don’t pay
- Get approved even with bad credit scores
Today, lots of merchants apply for consumer financing. This type of financing comes with several advantages for business owners. One of the benefits is that you can expand your reach by enabling more customers to take advantage of your products or services. Increased sales are another benefit to take into account. So, just turn to a reliable business funding provider and get easy approval for consumer financing if you think this is what you need.