It is always a challenge to come up with methods of helping your business to stand apart from the rest. Besides looking to companies that provide ongoing excellence in products and services, consumers tend to be attracted to businesses that have favorable terms and methods of payment. Here are some of the benefits of offering customer financing.
Many consumers have to work within the constraints of a tight budget, and so they forego purchasing items they need because they cannot pay for them up front. However, if they have the option of customer financing, they can pay for their needs in smaller installments and as a result buy more. This is a win-win situation. Your company experiences an increase in sales, and your customers are able to obtain what they need.
Interest More Consumers
Financing programs allow you to expand your customer base by increasing the affordability of your goods and services. People without a lot of cash on hand are attracted to your business, knowing that they can pay for their purchases in small increments over a period of time.
Encourage Buyers to Spend More
If your customers know that financing is available, they feel freer to increase the amount of their purchases. They may also have more confidence to increase the quality of what they buy instead of automatically choosing the least expensive options.
Build Brand Loyalty
Providing customer financing causes consumers to become loyal to your business and your brand. They know that when they return, your company will offer them affordable payment options, something that they may not receive if they look to your competitors.
Stabilize Cash Flow and Save Time
Customer financing is typically handled by third-party lenders that send you the full payment amount within days and handle the regular payments of your customers. This keeps your cash flow stable and saves you the stress of tracking financing and dealing with overdue payments.
For more advice on customer financing for your business, contact Coastal Commercial Lending.