5 Reasons Consumer Credit Can Help Your Business
Unlike big brands, small businesses lag in offering consumer financing due to financial and regulatory concerns. As a result, they miss out on potential customers, sales, and revenue. Consumer financial programs are beneficial for customers and businesses alike. Read on to learn five reasons consumer credit can help your business.
Boost Purchase Value
Whether your business opts for point-of-sale loans, lines of credit, or credit cards, consumer credit increases purchase value, allowing customers to purchase more or buy items at greater cost. It also entices customers to buy high-ticket items such as appliances, electronics, and home improvement accessories. Research shows that POS financing increases order value by 75%.
Improve Cash Flow
While customers get more time to pay for purchases, the retailer receives their payment upfront, a win-win situation for the customer and business. As a result, a retailer has funds to cater to day-to-day business operations and other obligations.
Among the most significant benefits of consumer credit is increasing sales, boosting your revenue and profitability. Customer’s purchasing power increases when they have access credit, thus driving sales. Forester Research reveals that providing credit at the point of sale increases sales by 32%.
Build Brand Loyalty
Extending credit can go a long way to developing brand loyalty, because customers feel trusted and valued. It also paints a positive company image and increases credibility. Businesses can enhance loyalty by offering incentives for early payments and frequent purchases. Credit financing also attracts and retains customers, expanding the customer base.
Credit access can help your business stand out from rivals in the increasingly competitive commerce world. It also attracts customers searching for ways to spread payments and those who can’t qualify for mainstream credit.
The best thing about consumer financing is that businesses that can’t provide in-housing financing solutions are not left out. They can work with third-party financing partners for mutual benefit. However, enterprises must choose a reputable vendor with competitive rates and implementation costs.
Consumer credit is a valuable business-generating tool for companies, regardless of size and sector. It increases sales and purchase value, establishes trust and loyalty, and boosts competitiveness. Contact Brightview Commercial Capital to learn more about consumer financing and available programs.