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Is Customer Financing for Small Business Right for You?

Are you a small business owner interested in offering financing to your customers? Are you looking to make a large purchase? Why not opt for customer financing for small business? Learn more about this type of financing.

Consumer Financing for Small Business

Customer financing is a striking opportunity to get one’s desired products/services from a business up-front without paying the full sum at once. It’s a 3rd party consumer financing company that makes the payment instead of the customer.

The financing provider pays for the goods/services up-front, and the customer pays the provider back in installments due to a payment plan. This type of financing is helpful both for businesses and consumers. Specifically, it’s ideal for consumers with limited budgets.

Both large and small businesses can take advantage of having an outside company manage payments and collections. As a result, businesses get more time to focus on their offerings and improving customer service.

Customer Financing for Small Business You Need

Those who start a new business and launch an innovative product often think obtaining the right capital is intimidating. However, if you turn to a reputable business funding provider like First American Merchant, you’ll be able to find the best financing option for your business and get approved for it without challenges.

When it comes to customer financing, you can find all types of options. Overall, consumer financing offers several advantages such as fast payments, growth of individual sales, improvement of customer loyalty, as well as reduced costs.

FAM, an award-winning alternative online lender and payment processor, specializes in the high risk field and offers customer financing for small business at the lowest rates and with exceptional terms. Particularly, First American Merchant has a special offer for merchants. Here it is:

  • 3-, 6-, or 12-month financing for your customers
  • Get paid for the total sum of purchase in 3 days
  • Not risky even if the customer doesn’t pay
  • Customers can finance up to $5.000
  • No problem with poor credit

Things to Consider When Offering Customer Financing

Here’re several important points to take into account concerning consumer financing:

  • Your target audience.
  • Is it reasonable in terms of the goods/services you offer? What percentage of your target consumers has the finances to pay up-front?
  • In case your product isn’t feasible, customers won’t be interested in this type of offer. Offer customer financing if it’s affordable both for you and your customers
  • Is the given price acceptable for your customers? What margins do you have?
  • Research the credit requirements of other companies offering customer financing and see whether your average target customer is eligible for this type of funding or not.
  • Offer a painless customer financing option. Avoid integrating expensive or complicated equipment. Require as little paperwork as possible.

Customer financing is also known as “consumer financing,” “installment plans”, “flexible financing,” or “buy now, pay later plans,” It can be quite beneficial for your small business if you know it’s exactly what you need. A respectable customer financing provider can help you find out this easily.