Many small business owners can benefit from consumer financing — credit offered by a third-party to their clients — but some are hesitant to pursue modern options because of how much the process has changed. If that’s your case, finding the answers to some FAQs about digital customer financing can help. From signing up to offering financing incentives to your customers, things are much easier than you think.
How Much Does Consumer Financing Cost Business Owners?
The details vary depending on the financing company, but this is generally inexpensive for any business, including small businesses. Many modern financing companies charge low fees or none at all. Some focus on annual fees, and others are performance-based, only charging costs when your customers buy something via credit. Put simply, the financing company usually only makes money when you make money.
How Easy Is It for Customers To Get Started With Financing?
Your customers can sign up online quickly. Sometimes this happens with a custom application via email, or you can have the portal set up on your business’s website. In any case, filling out the application and having it processed is fast. Most customers can get approved the same day — sometimes in under an hour.
How Do Business Owners Manage the Consumer Financing Portal?
For the most part, the financing company handles the heavy lifting when it comes to approving and signing up customers. The company also installs software or sets up a program on your website that allows you to keep track of which customers are approved for credit. If you choose to go the branded credit card route, your clients automatically get their credit every time they make a purchase at your business.
You should never be alone when it comes to customer financing programs. Great financing companies provide training for your staff and are on hand to deal with any of your questions or concerns. Always feel free to ask questions about any aspect of the financing program.
How Many Customers Are Approved for Financing?
Obviously, not all customers will get approved, but the great majority are. This type of financing has a great approval rate whether you sell to business clients or end consumers. This way, your customers are happy and so are you.
Once you get started with consumer financing, you won’t remember how you did business before it. You get paid right away, without the hassle of collecting. It’s amazing for business owners and great for your customers.