If you are like most entrepreneurs, you are in business for several reasons. Obviously everyone wants to make money, but many small business owners do what they do because they want to help people. It feels good to be able to do something for someone that they can’t do for themselves. Don’t let tight budgets and high unemployment rates create a barrier to growing your business. Help your customers by providing them with consumer financing.
Consumer financing can mean the difference between making the sale and watching someone walk out of your shop to visit a competitor. When a single parent is faced with the choice between putting food on the table and repairing their car, it can seem like there is no good alternative. If you, the owner of that car repair shop, were able to offer that parent financing, you would be their hero. You would also make a sale where otherwise you might not have.
In store, or consumer financing typically appeals to individuals who have less than perfect credit. Customers with high credit scores can usually finance their own purchases with credit cards or cash on hand.
You can help people who need a second chance restore and repair their credit scores by connecting them with a friendly financing company or offering them that credit yourself. Just be sure that you, or the financing company you partner with, complies with all current consumer credit laws.
Studies have proven that people tend to spend more when they are using credit. They focus less on the prices of your product or service and more on what that product or service can do for them. This enhances their perception of your customer service, and will make them more amenable to making their purchase from you.
Finally, providing consumer financing builds loyalty. Once they have a credit line open with your company, why would they go anywhere else for their future purchasing needs?