lines of credit

Do You Offer a Line of Credit for Your Consumers That is Easily Accessible?

Capture More Sales With a Line of Credit That Meets Your Customer’s Needs

line of creditToday’s consumers have not only an expectation of being offered financing options with a line of credit, but also that it will be quick and easy to obtain. If you’re not offering a way for your customers to access credit, you may be missing profitable sales.

There are many options out there for credit sources, but most of them specialize in one particular area: customers with good or perfect credit. It’s harder for those with no credit history or a less-than-perfect score to get the funds they need to make a purchase, and that’s where you lose sales.

Bringing in a third-party vendor allows you to offer a line of credit where you would otherwise have to say good-bye to a customer. Not all vendors are the same, though, so you want to check to be sure your vendor offers the following:

Online application process: Your customers, and in particular your Millennial customers, are accustomed to doing the bulk of their business online. A paper application may send the message that you’re behind in keeping up with the latest trends. Look for a vendor that offers a quick online process.

Immediate credit decisions: If your customer has to wait to hear whether they’ve received a line of credit, you’re more likely to lose the sale. Look for a third-party credit supplier that can offer an immediate decision, within minutes of the application being submitted.

Individual account attention: Your credit vendor should offer a high level of customer service to your customers, with accounts managed on an individual basis. When choosing between line of credit vendors, be sure that your decision is focused on the experience of the customer. Your customer isn’t likely to draw clear lines between the service they receive from you and the service they receive from a credit vendor, so make sure you choose a vendor that has a similar approach to customer service that you embrace.

Here’s the short list of what you need to look for when choosing a vendor:

  • Payment plans that can be tailored to the customer’s needs
  • Clear explanation of terms and conditions
  • The ability to function where you need it (in the online shopping cart or at the point of sale)

When your customers need a line of credit, connect them with The HELPcard. Immediate credit decisions, an easy, short application and superior customer service; The HELPcard offers all the options you want for your customers. Don’t miss out on sales due to a lack of convenient financing. Offer The HELPcard and provide a seamless customer experience.

Do Your Consumers Live Paycheck to Paycheck?

Do your Customers Live Paycheck to Paycheck? According to the CFED, (Corporation for Enterprise Development) nearly half of Americans are living in a state of “persistent economic insecurity”. The CFED report, published in Time Magazine says that 44% of Americans have little or no savings. To bring this closer to home, how many of your employees could write a check for an unexpected expense of $1,000 or more? How many of your employees who should value the product or services that you sell, would be in “trouble” if their next paycheck was delayed a week or two?
Consumer financing is a vital part of most industries who sell products or services with ticket prices exceeding $1,000. In fact, many industries know the majority of their customers are “payment” shoppers. The auto and furniture industries as well as premium electronics rely on financing for the majority of their sales.
There are several types of financing options for merchants to offer.
1) Installment loans are usually less expensive for the merchant to offer as the lender has less risk and less “compliance” costs, but are a real burden for the merchant hoping for repeat business.
2) Revolving credit encourages repeat usage, thus more sales but have higher credit risks and much higher regulatory and compliance costs to the merchant. Another benefit for revolving credit is that often there is much less “paper work” for the consumer and quicker decisions made. This is especially true if the revolving line of credit is through the credit card model that most consumers are familiar with.
3) Self-financing has been around for years, but the costs and skills now required to make good credit decisions coupled with many new consumer protection laws recently enacted have made this type credit less desirable than in the past. Most businesses seriously under estimate the true costs of in house financing.
Granting credit wisely has become an industry of its own. Credit bureau scores have been available since 1969 but new companies are emerging to offer information to better predict coming bankruptcies, to detect consumer fraud, and to better evaluate the non-banked consumers. It is estimated that more than 20% of the U.S. population does not use banks as a way to manage their money, yet some of these folks still want and are worthy of credit.
By providing a third party finance company that offers a compliant product and has access to many of the data becoming available beyond Credit Bureau agencies; your business can improve sales, minimize Accounts Receivables and have confidence that the lines of credit are being handled according to the strict guidelines of the Federal Agencies.

About the Author: T. Warren Center, DMD is the CEO at Dent-A-Med, Inc. Dent-A-Med, founded in 1983, offers many private label revolving credit cards like, The HELPcard. Dr. Center received his Doctor of Medical Dentistry degree at the University of Louisville, Kentucky and has lectured all around the nation on the topic of practice management in dentistry.