Providing Instant Credit is Important to Consumers
The more you can do for your customers, the more they’re going to spend with you. This includes giving them options when it comes to paying for your goods/services. While organizations that offer high-ticket items certainly benefit from offering financing, shops that offer more affordable items can also benefit by offering services that include instant credit.
PayPal had comScore, a company that measures brands and consumer behavior, do a study about credit and its impact on consumers. They found that 25 percent of those who used PayPal’s consumer financing said they would not have made the purchase if it hadn’t been for the credit available to them. This should give every business owner a reason to pursue this topic further.
A good example of how using financing as a payment option works includes a business owner who sells high-end music equipment. The people interested in these items have a commitment to creating the best sounds they can, yet they might not have enough money in their checking account to pay for it outright. These customers are perfect candidates for financing programs.
If you think it’s just the large companies and big-box retailers offering instant credit to their customers, you’re mistaken. Even the small shops are offering financing to increase sales. In fact, small- to medium-sized businesses are taking advantage of financing programs that some of the retailers miss out on. More often than not, big businesses go with big banks for their credit programs, which means they’re only able to offer instant credit to prime credit consumers.
When you go through a third party for your financing needs, choose a company that offers instant credit to A, B, and C rated consumers. These are prime and near prime consumers who are sometimes left in the lurch where financing is concerned, yet are perfectly able to honor the agreements that pertain to having a credit account.
When you choose a financier to set up your financing service, make sure they offer a quick and easy application process followed by a fast determination of whether or not the applicant will be approved. Many consumers get hung up on this aspect because they have probably been through a lengthy ordeal, only to be denied. Therefore, choosing the right financier that can offer a quick and easy application and approval process is critical.
What business owners who establish financing programs have found is that they see more return business because their customers really appreciate the convenience of making a purchase, taking their product home and paying for it in low monthly installments. It’s a courtesy that more consumers are coming to expect from the places they choose to spend their money.
At The HELPcard, we have established an application process that doesn’t make your customers wait nervously for a response. We also offer lines of credit to more than just prime consumers – we’re able to set your A, B and C credit-rated consumers with financing. This gives you a chance to sell more products and develop stronger relationships with your current customers while attracting more.