Customer financing offers your clients a chance to purchase your products and services on payment plans. It improves your reach to customers and boosts business revenue. Both small and big businesses can apply for consumer financing for future and current customers. You can choose to offer third-party or in-house funding; however, most business settles for third-parties. This post will provide crucial information on how to provide customer financing.
Educate Your Clients on the Financing Offer
Your customers should know that you are offering financing options for them to apply. It would be best to select the excellent or most costly items to reap the most from this financing option. Also, it is advisable not to offer financing on all items in the business. Identify the ones that consumers love but lack the funds to pay upfront for the product.
Make an Easy Application Process
Your consumer financing process should be straightforward and involve less paperwork. Consumers tend to abandon cumbersome application processes. Although financial agreements such as loan applications have to include essential customer details, look for ways of streamlining the process, such as using a bar code scanner. You may also give the clients the option of applying for the loan online.
Train Sales Workers
The sales staffs possess a major impact on the success of your consumer financing program. Ensure you train your staff appropriately on how to the program works, how to project financing to clients and how to provide answers to top queries and concerns.
Approval Process
After customers apply, your approval process should not take long. They should get a message that tells them if they have been approved or not and how much financing they will receive.
Provide Promotional Rates
After approval of the financing to the client, you should offer promotional rates instantly. These promotional rates encourage customers to use their credit immediately.
Payments
After the approval of the consumer, you should provide identification numbers or bar codes that they will use when purchasing the product. The financing firm will pay you in a way that is similar to credit card purchases. You will receive the full payment of the item while the client owes the financing organization.
Client financing is made to convert window shoppers into clients. It offers to finance to customers who cannot pay for a product they like upfront. This financing option will boost your revenue and relationship with your clients.