When customers are interested in purchasing a product or service, they are most likely to follow through with the sale when it happens on the same day. Unfortunately, many decide they can’t afford it after all or want to go home to think about it some more. This gives them time to talk themselves out of the purchase, which most people end up doing. By offering consumer financing, you remove the obstacle of paying for the product or service all at once and increase the likelihood of a sales conversion.
How It Works
Your customer may object to paying cash for the item or putting it on a major credit card because that ties up his or her credit line for a while. With consumer financing, you offer credit to your customers under your own company brand. This allows them to make payments on a separate account and maintain better personal cash flow. A great way to pique interest in your company’s consumer financing offer is to have teaser zero percent interest campaigns. Knowing they can make payments without added interest is a great incentive to buy the item now.
Setting Up a Consumer Financing Program
You can always run credit checks on your customers, create the credit card, and manage billing and collections on your own. That would take a significant amount of your time away from other duties, however. A better option is to partner with a third-party organization that creates branded credit cards. The company you hire takes care of all the details so all you need to do is watch your sales increase.
Once you have a consumer financing program established, be sure to advertise it heavily to your customers. They should have an approval decision within minutes and the ability to take the item home with them the same day. People who sign up for branded credit cards often spend more with the merchant than they would have otherwise and become repeat customers as well.
Are you considering starting a consumer financing program? Contact Infinity Lending Solutions today for help with the process.