Very often, merchants are interested in a “90 days same as cash” program for their customers. Small business owners are looking for ways to offer their customers financing like the bigger chain stores do.
Thanks to in house financing, your customers can boost your sales, improve customer loyalty, and build a repeat clientele. In reality, the average order size of a small business offering customer financing can grow as much as 120%. About 2/3 of customers make an additional future purchase of $500+ in stores they receive customer financing from.
Customer Financing
Customer financing is called to convert a browser into a buyer. It’s designed to target potential customers who haven’t decided yet to buy goods/services from your business because of the upfront payment.
With the help of customer financing, customers can be enrolled in an affordable monthly payment plan, so they won’t be obliged to pay all at once. Thanks to customer financing, you can make larger sales, make sales more often, and enjoy increased customer loyalty.
When considering a new customer financing program, there are 4 questions that need to be addressed. Here they are:
- Cost to the merchant to offer customer financing
- Will your customers and goods qualify for financing?
- Will your customers like the financing?
- Is the customer financing easy to implement and scale?
Consumer Financing from FAM
If you’re trying to find the best answer to the question “How to provide financing for my customers,” consider turning to First American Merchant, a reputable business loan provider and high risk payment processor that has an A+ rating with the BBB. FAM offers the lowest possible rates and exceptional business funding opportunities in the industry.
Firstamericanmerchant.com has developed a solution that offers merchants an unprecedented opportunity for growth, specifically:
- Offers customers 3-, 6-, or 12- month financing
- You get paid the purchase amount within 3 days
- There is no risk to you if the customer doesn’t pay
- Your customers can finance up to $5.000
There is nothing difficult about FAM’s program. To get financed, your customers will just need a personal checking account. Your customers should just answer a few questions that you enter into a credit card processing terminal, and the terminal will provide you with an authorization number or a decline. Once your customer gets approval, he/she will have monthly payments automatically debited from his/her checking account. The interest rate to be paid will be based on your business type.
These days, many customers are likely to lack the available funds to make large purchases and may need some help. On the other hand, small business owners are looking for ways to increase their sales to a great extent. So, this is a fine system that can be used to increase sales if the financing product matches your customer’s needs.