Our finance company was founded on the idea of helping consumers get what they need. Not everybody has a 700 or better credit score to qualify for a Synchrony or Care Credit card. There are more individuals that don't qualify just on this aspect alone. Our financing option is simple for the consumer and secure for the merchants. We pay the merchants directly for each sale as opposed to sending a credit card to the buyer in the mail. In this instance you'd run the risk of the consumer spending the money elsewhere or with your competitor. This way the sale is always secure with the merchant. We also don't charge transaction fees to the merchant as our theory is have long term business with that particular merchant. All credit card companies and lenders not only charge the consumer their interest rate but also charge these transaction fees by keeping a portion of the sale from the merchant. Credit card sales carry transaction fee to merchants typically no higher than 6%. While our competitors will charge a whopping 10% or up to 15% per transaction! Credit card companies and our competitors look at this charge as a fee for the "convenience factor". We on the other hand, see this as "double dipping" on the sale. A 10% transaction charge to the merchant from a $3,500 sale will net you $3,150 that's a $350.00 charge to you on your sale (the convenience fee). Imagine every single sale you make daily? Lets say you make just one sale every day at $3,500 multiply that by one sale everyday for one month (30 days) that's $9 thousand dollar's a month you are paying in fees. Lets do $9000 thousand dollars every month for 12 months.. that's $108,000.00 dollars a year you are paying (losing) in transaction fees, that's crazy!
We do charge an annual fee of $499 a year (which has been lowered for a limited time from $699). This is a recurring annual charge as long as you have an active account though us. That's' a lot less than having to pay $108k a year to our competitor for transaction fees. We also don't "charge back" our enrolled merchants. One of your customers cannot call us on a later date and dispute the sale, we aren't a credit card company. The loans to your buyers are of no recourse to the merchant. We take every precaution before granting a loan to every individual and make sure they can afford these loans so our default rate is rather low in comparison to "credit score based" approvals from other lenders.
In the event a customer defaults on repayment to us; the customers checking account will be closed by their own bank and the consumer won't be able to re-establish another checking account (even at another bank) until they settle up with our debt first. We work great with both small and large companies especially through these strange and hard economic times. Our customer finance program is a great stimulant on its own to have for your business. Rather than taking out a business loan to save your business why not use our money instead and turn every visitor into a sale. If their earning an income and their checking account is in good standing, make that sale!
Did you know:
There are over 60 million individuals in the U.S. with credit scores less than 600. That's almost all of us! It's these individuals that walk into your store everyday. Many of these individuals visit your store regularly but do not make a purchase because they can’t afford the price. So they'll shop at a store with a finance program that will suit their needs. Open a merchant account for your business today and stop letting potential sales walk away empty handed!
Why Offer A Finance Option To Your Customers?
By offering a finance option to customers, businesses can boost their sales, land larger contracts and increase their average sales transaction size. Financing allows customers to make regular, affordable payments toward the cost of a big-ticket item, instead of paying the full price up front. Cost is often the first consideration for customers shopping for a big purchase: they want to know if the product or service they want will fit within their budget.
You eliminate the “sting of sticker shock” by having a finance option available for your customers and shift the conversation away from total costs. Instead, you can show customers how low monthly payments can allow them to buy exactly what they want. Financing allows you to re-frame the sales conversation, shifting the focus away from budget constraints to the value the purchase will bring.
What is customer financing?
Customer financing breaks down the total cost of expensive goods and services, enabling customers to make smaller loan payments according to a set schedule. Rather than paying the full retail price at the time of purchase, customers make regular payments on a monthly, bi-weekly or weekly basis.
In most cases, customers are charged interest as part of their loan payments. Interest rates vary depending on the terms of the loan, and in some cases, merchants will offer zero-interest financing as an incentive to potential customers.
Why you should offer our finance option to customers?
1. Increase your sales and average transaction size
Financing increases a customer’s purchasing power, making large purchases more affordable. Not only does financing make it easier to close a potential sale, but it’s also a powerful tool for upselling. You can demonstrate to customers how a small increase in their monthly loan payments can allow them to afford upgrades or additional products, without the need to offer discounts or other incentives. Financing can successfully boost your revenue: a study found that the average sales transaction size increases 15% for companies that offer consumer financing. Now just imagine if the finance option you provided your customer doesn’t require a credit score to approve their purchase. Then you’re easily looking at a 30% increase is sales. This could be monthly.
2. Be more competitive
Offering consumer financing can give you a competitive advantage, allowing smaller businesses to compete with big-box stores. Merchants can add additional customer incentives to further improve their competitiveness. You can consider offering promotional programs to sweeten the deal for customers, like payment deferrals, interest rate buy-downs or no-interest loans. These incentives can help you close sales and drive repeat business.
3. Attract new customers
Your business can attract new customers by offering consumer financing plans. If a prospective customer is shopping around for a big purchase, they may be more likely to choose your company over a competitor that doesn’t provide financing options. It can also help you earn repeat business, as consumer credit programs often motivate customers to return for future purchases. A study found that 93% of buyers that use consumer financing for the first time would use it again.
4. Get paid quickly
A common barrier that discourages small businesses from offering financing is that it can have a negative impact on their cash flow since business owners don’t receive the full sales price at the time of the sale. But by signing up with a third-party loan provider like Retail Customer Finance, you don’t have to take on the risks associated with providing your own loan program. Once Retail Customer Finance approves your customer for a loan, you get paid the full sale price in your bank account within two to five business days. Your cash flow isn’t affected, and you don’t need to worry about the risks if a customer falls behind on loan payments or even defaults on the loan.
5. How to offer customer financing
Customer financing allows businesses to give their clients flexible payment options when they can’t afford the full price of a large purchase. The easiest and safest way to offer consumer financing is to use a third-party lending provider like Retail Customer Finance. It ensures you get paid quickly and in full for all your sales, and it eliminates the risk of non-payment that businesses face when they offer their own financing programs directly to customers.
Most customers don’t know to ask about financing when they’re shopping for a large purchase, so it’s important that you always make it a part of your conversation, when giving the price of the sale. “Would you like to pay cash, swipe a credit card or would you like to finance it”?