Times have gotten tough for small businesses. Over 10 million businesses shut down in 2020, some were permanent. Rebuilding your business can take time. However, one of the fastest ways to increase business sales is by offering customer financing. Here are the benefits.
Benefits of Offering Customer Financing
Offering customer financing is probably the fastest method in turning your business around and getting it back in profit. Offering customer financing does several things. First of all, it breaks down large ticket items into manageable monthly payments.
Manageable monthly payments does two things: it gives the customer “purchasing confidence” because they know they can afford smaller monthly payments, rather than a big purchase amount upfront,
Two, it usually makes the customer feel like they have more options and purchasing power, so they immediately add more services or products to their cart.
The best benefit of all is for the business owners who offer customer financing. Let’s say you offer customer financing for your coaching program. Your flagship mentoring program is $5200 for a four-day intensive. Out of 1000 people you presented the program to, only 20% purchase the intensive at full-ticket price.
However, if you offer customer financing beforehand, you could get 85% more sign ups, and this could happen quickly. You can get customer financing in as little as 48 hours. But, the best part of all is that you as the coach get the $5200 immediately from the lender when your client gets approved for customer financing.
So, not only do you increase sales by 85%, you also get the full amount instantly from the lender when your client gets approved for the loan. There is no recourse to you if the client defaults on the loan either. There is no recourse or clawback against you. It is only between the lender and your client at this point.
Customer financing is great for any business owner who has a product over $300 or a service over $1,000. We can cover a product or service up to $100,000. So, if you do remodels for a living and want to increase sales dramatically for your kitchen remodel special, you can offer contractor customer financing within 48 hours and increase your business 85% right away!
How Offering Customer Financing Works
Choosing our customer finance options is a seamless, out-of-the-box system that works seamlessly with your brand. You get your own branded order form for your customers and you get your own merchant dashboard to see your customers and what amount they received and so forth.
Your customer can view the product or service on their phone or via your website and then see financing options. We work with over 15 lenders to get more of your customers qualified for financing – even for customers with second-chance or bad credit.
Once your customer or client chooses the right lender with the right terms and hits the buy button, you as the business owner get the full amount instantly – and your customer then goes under a loan agreement with the lender. Everything from that point on is between your customer and the lender, there is no recourse to you if the customer defaults, period.
Why Offering Customer Financing Can Save Your Business
Research all over the board suggests offering customer financing boosts sales, and quickly. You can have everything set up within 48 hours. This is the greatest time to improve sales after the pandemic. Businesses have died because they couldn’t make profitability. We believe customer financing is the second fastest method to increasing revenue other than getting a working capital loan – which we offer as well.
We are devoted to your success more than ever. We hate seeing businesses close because we are business owners ourselves. We hope that you see the value in customer financing and apply below. God bless you and thanks for reading!
Erik C. Johnson