Businesses that can offer their customers financing options will increase sales. If you offer high priced goods or services, customers may not always have the funds on hand to make the purchase. However, they might be able to buy your product or service by making payments over time. In these cases, business owners can partner with financing companies that allow your business to offer financing to customers. Keep reading to learn how to partner with financing companies in your industry.
Decide Which Products To Offer Financing For
Firstly, you should establish large ticket items that your customers need financing for. For examples, your business might include electronics, jewelry or medical services. For almost any product or service over $100, you may want to consider offering financing options to customers. Moreover, for purchases over $1,000, the ability to work with financing companies could increase your sales, giving your customers the ability to pay for the item over time. This is a great option for consumers who need to clean up credit and would not like to pay with their credit card.
Shop Customer Financing Companies Costs
Next, you will want to start shopping for financing companies that you can partner for. Some companies have packages that are free for small businesses. Meanwhile, other companies have a flat fee for their services. Depending on the monthly or percentage financing fees, you will have to decide if the additional sales will compensate for the added costs. If your product is similar to those mentioned above, you could end up paying off the financing firm’s fees with just one additional sale. Make sure you research many financing companies for small business as they can have varying fee structures and costs of debt for the end consumer.
Apply For An Appropriate Financing Company
After calculating your budget for offering financing to customers, you will have to choose a partner. As you will see, many financing companies specialize in lending for particular products, business models and industries. If you are distributor or manufacturer, a vendor financing company would help your customers buy inventory while eliminating risk for your business. In this case, the financing service specializes in larger procurement process transactions from $4,000-$500,000. Certainly, they will be able to offer favorable terms to customers who are businesses themselves. Depending on your customer need, apply to company that services your type of business.
Integrate Your Financing Program Online
The best financing companies for small business have established, secure software that will work directly with your website or online eComemrce store. Clients can either log in to sign up for financing options. Or, the customer financing program can integrate directly into the check out process. As a result, customers may end up buying more because they have the option to use credit for their purchase. Once the lending platform is integrated with your business, you are ready to start offering financing to customers.
Start Promoting Financing To Your Customers
Now that your financing company’s platform is integrated, you should tell your customers about the credit options. There are many ways to advertise the fact that you offer financing. When checking out on the website, you can have a notice or a link that tells customers to offer financing. Inform current customers that they can split their next purchase into smaller payments in installments. Once customers start to find out about the financing options you offer, you will be able to sell more of your goods and services.
Partnering with financing companies is a great opportunity. You can earn more business by offering customer financing and keeping your risk low. To partner with a company, decide which products would be suitable to consumer financing. Then, check out the various financing fee structures with free, flat or flex rate. Then, sign up with an appropriate consumer financing partner and you will be really to integrate it into your business. Finally, let you customers know that you offer small business financing to them. They will start to use it and spend more with your company.