You may have noticed or observed personally that a great many retail companies are now providing consumer financing options in addition to their normal cash sales. This is not just a trendy little business notion that will fade away like last week’s headlines – there are some legitimate reasons why this movement is catching on among retailers, and why you should consider it as well for your own small business.
You can reach more customers
When you include consumer financing options for potential customers, you make your products available to a much larger audience, specifically all those people who might not be able to afford the entire upfront cost of buying a big-ticket item, or spending a huge amount on lots of small items. Some of these potential buyers may even lack good credit, but with today’s less stringent credit standards, that’s not usually a problem.
There’s no risk to your small business
One of the really great things about setting up a consumer financing program is that when you partner with a financing company, that company assumes all the risk when a financed purchase is made. Your small business will generally receive payment for the purchase within a couple days, and it then becomes the responsibility of the financing company to actually collect payment from the customer.
It’s easy to setup and costs very little
For most small businesses, setting up a consumer financing program is very simple, requiring no more than signing an agreement with the selected financing company. There is usually either no upfront cost, or a very small one associated with starting up such a program, so it’s all really extremely easy. This amounts to a win-win-win situation for all three parties: the financing company gets increased business from your company, you reach a whole new segment of consumers, and many people who might not have been able to afford a cash payment, can now make purchases.
For more information on how you can implement a consumer financing program in your small business contact Bull Market Capital: Business Funding Solutions.