What Consumer Financing Can Do For Your Business
In the current economic climate, many business owners are feeling the pressure to drive sales and keep their operations afloat. With consumers becoming more cautious with their spending habits, creativity is key to offering products and services that align with their fluctuating financial needs.
Today, I'm going to introduce a method that could help you navigate these challenges. It's essential for us, as business owners, to first, adopt an outside perspective to better understand our customers' needs. Let's step into their shoes and explore this approach together!
Imagine this– You’ve been a photography enthusiast for as long as you can remember.
You've been dreaming of upgrading your camera equipment for months so that you can finally make photography your full time career! You have confidence that investing in better gear could take your business and clients' photos to the next level. However, your savings account isn't quite ready for such a purchase.
One day, you get an idea to check the website of that local camera supply business near you to see if they carry the camera you have your eyes on.
There it is– you spot it. But just as you thought, it's $1,200. You continue to scroll and notice that the business offers something you’ve never seen before, a Consumer Financing option, as they called it. The offer seems almost too good to be true – it allows you to spread out the cost of the camera over several months. In fact, to qualify for this option, only a soft credit check is required, guaranteeing that your credit won’t be affected by this application.
Excited by the possibility of finally getting a huge step closer to your dreams, you decide to apply for the financing option. To your delight, you’re approved almost instantly!
With the burden of a large upfront payment lifted off your shoulders, that you thought would have taken you years to save up for, you eagerly place your order.
You choose your payment plan option, enter your payment details and you receive a one-time use virtual card number that can only be used with the camera shop to complete your purchase. You hand off your virtual card number to the photo shop and your payment plan is set to go! You finally get to take home your brand new camera and begin learning everything you need to do to take the next leap in your photography business.
Within a month, you have a wait list of clients and you’ve successfully made your career dreams come true. You’re still paying off your camera in small payments but your income has doubled and you’re so glad you took a chance on yourself by financing your new camera.
Now that we’ve seen how consumer financing solutions play out in real time, let’s dive into the details that you, the business owner, will need to know in order to decide if this option is right for you.
Financing payment solutions allow your customers to purchase products or services with the flexibility of paying over time, typically through a seamless, convenient installment plan. These solutions allow customers to make purchases from $500-$100,000+ without having the full amount upfront, while offering businesses the opportunity to increase sales and customer satisfaction.
Here’s how Consumer Financing works for a business:
You will first need to register with one of our trusted consumer financing partners. They will then send you a personalized QR code and web link. These will allow your customers to easily apply for financing online or straight from their phone.
Customers will apply for the purchase they’d like financing for, will go through a soft credit check and if approved, can choose their preferred payment plan.
A single-use virtual card number is then generated for the approved transaction for the exact dollar amount for the service or item they are purchasing. This number is shared with the merchant, who promptly keys it in, enabling them to receive the full payment, immediately from our consumer financing partner.
You have the peace of mind knowing you’ve been paid in full and the customer continues to be charged by your financing partner according to their chosen payment plan.
This method works amazingly for businesses because our financing partner pays you, the business, the full amount of the item or service and shoulders the risk associated with the transaction. They handle each of your customers' payments for you so that you don’t have to worry about missed payments or waiting to get paid in full. This streamlined process ensures convenience for both merchants and customers, creating a smooth, win-win situation for everyone.
By offering financing options, your business can provide customers with a convenient and accessible way to make purchases. Whether they're buying a $500 TV or finally investing in the kitchen renovation of their dreams, customers can do so with confidence, knowing they have flexible payment options available to them.
Similar to a credit card, your customers can make purchases without needing to pay the full amount out of their own pocket all upfront. But with the unique advantage that they don't have to pay the remaining amount off right away. They can choose a payment plan that works for them, whether it be a few weeks, months, or even years, depending on the plan options they are offered.
Additionally, the flexibility of financing offers a seamless opportunity for up-selling or bundling additional products or services. Customers who might have hesitated due to upfront costs are now more likely to make larger purchases, driving your revenue.
Conclusion
As we mentioned, financing payment options offer a multitude of benefits for businesses looking to stay ahead in today's competitive landscape. From enhancing the customer experience to driving higher revenues and creating loyalty, the sky’s the limit!
If you’d like to add consumer financing as a payment option for your clientele, we’d love to help you get started.
At Cardentix, we work with the very best consumer financing partners in the industry. Whether you’re an established client of ours or just hearing about us, our integrations offer you a cost-effective, efficient, reliable and powerful tool for increasing revenue, in any economy.
And don’t worry– we do the work for you making this process smooth, quick and easier than ever so that you can focus on your busy schedule. If you've been looking for a way to increase your revenue, consumer financing may be a great and nearly effortless addition to your business.
