A Revolving Line of Credit Brings Advantages
Consumer credit products are nothing new. Over the years, the availability of a revolving line of credit migrated from the car lot to the average retailer, and now it’s used by consumers in just about every area of life.
According to research by marketing managers at PayPal, 93 percent of first-time consumer credit users have a positive experience and would use it again. Here are some other statistics from the study and research from Forrester:
- 30 percent of shoppers who used consumer credit said they wouldn’t have made as many purchases without the revolving line of credit.
- Retailers tied to a credit program get 100 percent of their funds within a few days.
- Offering a revolving line of credit can increase incremental sales by 17 percent and increase the average order value by 15 percent.
Financing isn’t just for the bigger players – small businesses are connecting with non-traditional third party lenders who have credit programs lined up for the smaller companies. Now, these smaller shops can step onto the same playing field as the legacy brands that have offered financing for years.
With a credit program, you can extend a line of credit that your clients pay off over a period of time, which can be predetermined with each individual program. The positive side effect of a revolving line of credit program is that consumers are more apt to make purchases they wouldn’t otherwise make, and in many cases, make larger purchases than they would make without credit.
Consumers today want flexibility, which is what they get with financing. Whether it’s online or in a physical store, they want options when it comes to stepping up to the checkout line. Did you know nearly 70 percent of online shopping carts are abandoned before checkout? If you’re like most businesses today, you offer some eCommerce options to your customers. If you give customers the flexibility they need to make a purchase, they are less likely to abandon their carts.
Another advantage of taking on a third party to offer your customers financing is that you get your money quickly, you don’t have to wait until the customer pays. In most cases, you receive 100 percent of the money within three days of the purchase. This allows you to get yourself in a better cash position, which means you’re positioned for growth.
The HELPcard is a company that is uniquely suited to offer solutions for revolving lines of credit. When you partner with us, your clients get the flexibility they’ve been wishing for and you reap the rewards. Contact us today for more information.