Customer Financing For Small Business | Financing For Customers
Posted by OriginFinance 15 days ago (https://originfinance.co.uk/what-is-customer-financing-how-does-it-work/)
Description: Customer financing, as previously stated, provides solutions for clients who want to acquire your goods and services but can’t afford to pay the full price upfront. An example of this is when you sign up for a payment plan, an item which costs £1,000 becomes available to your customer for five £200 instalments (plus a small interest rate). By providing financing to your customers, you essentially make your items or services cheaper for them. Offering finance to customers promotes buyer conversion and customer loyalty on the merchant’s end. Offering consumer financing alternatives, according to one study, improves a customer’s average order amount by 15%. Furthermore, 93% of clients who utilised credit alternatives in this study stated they would use them again. As a result, if you believe that customer financing could assist your small business, you will want to learn how to provide finance to your clients. Overall, there are two basic approaches to providing customer financing. The first alternative is to do your own credit checks, provide loans, and manage payment collection. This approach, on the other hand, takes a long time and comes with the legal responsibilities associated with using consumer credit information. As a result, the second option is to rely on a third-party organisation to provide finance to your customers.
Category: Business
Tag: customer financing
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