The top priority for any business owner is maximizing sales. Most businesses and companies have found that offering financing options to customers has made it easier for them to maximise their sales. After starting a retailing business, your next step is finding ways to acquire and retain customers. Of course, in order to do this effectively, you must change your business structure to the needs, wants, and budgets of your potential customer target. Depending on the type and budget of your inventory, offering customer financing might be the best option for you to increase sales. This will also help you improve customer loyalty.
So, what is customer financing? Customer financing allows your customers to subscribe in an affordable payment plan to help them with purchases. They can enroll in a payment plan, rather than paying the full price of an expensive item upfront. Due to this, customer financing is made to change people from simply looking and thinking about shopping in your shop to actually buying your product.
Businesses can offer financing as a payment option to their consumers, either on behalf of the company itself or through a third-party financing company. Rather than a customer paying for the entire price of their purchase at the moment, customer financing options allow the customer to pay for their purchases in a row of affordable payments, with an interest rate based on the total purchased amount.
As customer financing increases sales, small retailers and larger brands alike offer this to change more people from browsers into buyers. Therefore, if this plan sounds like something that might be a help to your business, you may be wondering: How can I offer financing for my customers? Don’t worry, we’re here to help. This article can be a helping guide for you to offer customer financing in many ways. This can also be a help with financing online purchases.
Best Providers to Offer Customer Financing
Although there are several providers in the industry that can help businesses offer customer financing, not all of them are the best option for small company owners. Many of these providers have few requirements to be reached in order for them to help you. Some of them require a minimum amount of sales or a minimum number of financed purchases each month. Most of them might take a huge prize out of financed purchases.
Therefore, if you want to offer financing to your customers, you have to be sure you choose the best provider for your business. To help you begin your research, we’ve gathered few of the customer financing providers who have reasonable fees and no minimums. These options are some of the good choices for small businesses. Also, when you choose any of these digital platforms, your customer can apply for financing from anywhere possible. It can be from your store, online, or right from their smartphones.
Here are five customer financing platforms you might want to look into:
Viabill is designed for online small companies and retailers that want to give financing to their customers. This company lets your customer pay the cost of purchases by splitting it into four equal monthly payments. You can easily integrate Viabill into your online checkout even if you use any platform for your e-commerce shop. It can be Shopify, Magento, WooCommerce or another platform. You’ll pay the cost of 2.90% plus 30 cents per transaction. This price is almost similar to typical online credit card processing fees.
When customers choose the option for financing through Viabill, there are no credit checks. They’ll receive the approval message almost instantly. The best part of vialbill is that it doesn’t add interests or additional fees. This provider requires 25% of the payment at checkout and then splits up the rest of the three payments equally.
There are many good Paypal small business solutions. However, the only one that is known to everyone is PayPal Credit. PayPal Credit is the best for financing online purchases in businesses and brands, especially for those that already accept PayPal as a payment option, to offer customer financing. This service provider lets you add a financing button or banner to your online checkout when your customer checks out with PayPal on your webshop.
The PayPal credit service is free for online companies and businesses who already accept payments through PayPal. So, this means you’ll only be buying your current PayPal transaction fees to offer customer financing. Similar to Viabill, customers don’t have to pay any interest if they purchase a product that’s at least $99 within six months.
Financeit makes sure that the cost of customer financing online purchases will go up to $60,000. As the above two service providers, they don’t charge any transaction fees. Moreover, the standard program is free too. Your consumer can apply for Financeit customer financing from anywhere. They can do it from their smartphone in your store, or on your website using the Financeit digital tools. Another advantage is that if they are approved, they can receive funds as soon as the next day.
In conclusion, offering customer financing to your target base can be a win-win situation for both your business and your customers. By now, you can answer the question of ‘How can I offer financing for my customers? While you can increase your number of sales and average purchase size, customers can purchase more of your products and services they need. If you are still not sure about the procedures of customer financing, Accelitas is one of the most trusted firms. It offers and helps you with everything related to customer financing.