If you want to offer your customers credit to purchase your products and services, you should be looking into consumer credit. You can either offer credit yourself or you can work through a credit or finance company to reduce your risk. These are some of the benefits of offering consumer financing.

More Customers

When you offer financing, you should attract more customers. This is especially true if your products are high in price. Consumers who may not have thought they could afford your products are more apt to make a purchase when they can make payments over time. Today’s consumers do their research, so if they think you offer the best product, and they will be more excited if they can actually afford it because you offer credit.

Customers who use your credit also tend to be more loyal to your company. This results in retention and additional sales from your financing customers. However, these consumers also tend to send their friends. They are more willing to refer their friends and loved ones to companies that provide credit options. Word-of-mouth advertising is often the most profitable because it instills trust before prospective clients even visit your store or website.

Increased Sales

In fact, most businesses who offer credit to their customers have up to 30% more sales than those who don’t. Not offering financing can be especially detrimental when your competition does. Credit encourages your prospects to make purchases because they can enjoy the benefits of the products right away without having to pay their full price immediately.

Not only do you receive more sales, especially from new customers, but the total purchased during each sale is typically greater. Companies that offer consumer credit typically experience a 15% increase in the value of each sale. In addition

Returning Sales also increase. For example, up to 93% of consumer credit users had positive responses when asked whether they would use this credit again. This encouraging statistic shows that not only do you attract new consumer sales and increased purchase sizes, but you should experience multiple sales from the same consumers.

Increased Cash Flow

When your clients put their sales or orders on credit, you receive the money immediately even though they will make payments on the total amount. Instead, the finance company transfers the full amount of the sale, less their fees, to you right away. Your financier takes on the risk and takes on the responsibility of collecting the debt.

As you consider ways to improve your customer service, consider researching the benefits and process of offering consumer financing.