If you’re looking to improve conversions at the point of sale, you might consider offering consumer financing. In addition to increasing sales and turning more browsers into buyers, giving your customers the option of consumer financing can also bring you repeat business and increase loyalty among your current customer base. Stores that offer their own branded financing see orders increase by an average of 120 percent as well as have two out of three customers return to make a future purchase greater than $500.
Understanding the Customer Financing Process
Customers who don’t have a major credit card or who don’t want to use one to make a purchase at your store may forgo the sale rather than pay for it all at once or use a Visa or Mastercard. You take away one major objection just by offering them an in-house financing option. This is especially useful for large-ticket items such as computers and home appliances. Make sure that you display your store’s financing offer prominently whether you operate primary online or at a brick and mortar location.
Typically, small to mid-sized stores use a third party to handle financing requests. If you have an online store, be sure that your customers have the option to click to apply for quick financing on the spot. In store, they can use a smartphone application or something equally convenient that doesn’t require them to spend a lot of time completing a paper form.
Your financing partner may offer a no-money down deal, no interest if paid in full in less than 12 months, or an introductory interest rate. Spend some time studying customer demographics, including how they normally pay, before deciding on the right offer to present to your customers. The customer goes home with the purchase and you get credit for an immediate sale. Everyone wins in this scenario.
Are you ready to start offering consumer financing? Contact Nations Capital Financing today and watch your sales soar.