Small businesses usually don’t offer many financing options to their customers. Doing so can increase sales and more flexibility for clients to make purchases. Just providing some simple financing options to customers gives your customer greater purchasing power. Adding financing options for larger purchases will attract more customers and will close more sales. providing your customers with consumer financing for businesses options will lead to more transaction engagement and grab a customer for another deal from your company. Not only will it boost sales but also improve customer satisfaction and trust.
Here is a list of reasons how you can take advantage of consumer financing for small businesses:
Sale boost: Making a large number of sales for expensive items is difficult when it comes to paying the whole amount upfront. Giving your customers the option of buying now and paying later provides a sense of fulfillment and choice. With this option, they can buy exactly what they desire without the need to pay a whole amount at a time. The biggest barrier for customers to decide whether to buy a product or not is the initial cost of a big purchase. Studies have shown the amount of sales has increased up to 34% by providing financing solutions to potential customers. Follow these customer financing for small business options:
- Primary financing: Primary financing is when a small business devises methods to provide its financing options.
- 3rd party financing: It includes relying on some other companies or organizations which offer to lend at the moment for your customer.
- Inhouse loans: Providing in-house loans for products like electronics, gadgets, furniture, home decor, etc
Increase in order values: Providing customers with an option of financing to break a larger amount into smaller sections which they can easily pay along with their other monthly bills helps attract more customers. This in turn increased the number of orders my customers made. more orders will in turn boost revenue and transaction engagement. an increased number of orders will be good for your business image and statistics. people who read about you before they buy from you will get a good image, more orders, more satisfaction, and value customers. Customers can be allured to buy the upgraded version of the product they wish to buy because the financing option will split the bill into smaller sections which will not make a larger difference even if they buy a generic version.
Earning repeat customers: Providing the best services and solving the customer barrier to purchase will help gain customer trust. Customer loyalty plays an important role in the future sales of the company. once you provide a customer with the best financing option to make a bigger purchase and make it hassle-free for the customer. chances are the customer will come back to you if he/she wants to make another bigger purchase. A small business offering financing to customers to compete with bigger brands by providing their customers with financing options. It will help gain customer loyalty, you can provide them with offers occasionally like paying within 6 months of the full amount, and no interest will be charged. your customers will get attracted to these offers. You can provide your customers with a cash card for their next purchase whenever they make any purchase. Treating your repeated customers with offers and cash cards will boost morale and loyalty, you will bag a customer forever.
Hassle-free setup: Working with an experienced and trusted finance company will be helpful for your business as well as your customer. They can provide you with all the information needed to set up business financing for customers. an experienced company will get all the legal work done for you and your customers, providing you with all the information on the laws and services they offer. Sign legal documents with your financing company to provide seamless transitions to boost your goodwill with customers and in turn your sales.
Improved cash flow: Small businesses usually don’t consider the benefit of providing financing options to their customers. It will not just improve sales but also cash flow. With advancing technology you can work with app developers to provide your customers pay online. Online consumer financing for merchants with 3rd party payment options will decrease your workload and will provide your customers the flexibility of payment. more payment options bring about better cash flow to your business. attracting online customers by advertising online and providing online offers and paying then and there will grab you more customers giving you better cash flow.
Conclusion: Small businesses can improve their sales and attract more customers by simply adding customer financing programs for small business. To compete with big firms and stay sturdy in the market, small business owners need to make certain changes to attract customers. customers usually resist buying products due to the barrier of paying complete amounts upfront but proving buy now pay later options can be a life saver.