What is consumer financing and how will it affect business?
Consumer finance is a part of retail banking services which lends money as loans to consumers. A wide array of loans are used in everyday life, such as mortgage loans, credit card loans, auto loans, home improvement loans and more. As a business owner, you might face situations where you have customers that want your goods or services, but don’t have the upfront costs covered. Securing a bank loan is not always possible, considering the credit score and other criteria that need to be met for securing the loan. In such cases, having a good consumer financing program can help you convert those customers that might have gone a different way. Although consumer loans come with a higher rate of interest than banks, it meets the financial needs of your customers.
When should you consider using consumer financing in your business?
Any retail business that has goods or services that are higher ticket items should be in the consumer financing game. So if this describes your business, and you aren’t offering your customers alternate payment options, chances are you’re leaving money on the table. Retail businesses that only offer one type of financing are also missing out on the increased revenue that comes with a multi-faceted consumer financing program. Check out our blog on the importance of multiple lenders, right here!
Where should you look for this type of financing?
If you are looking into consumer financing, consider letting Financing Your Way help build the perfect lending waterfall for your business. The world of consumer finance can be a tricky one and it’s definitely one that is changing constantly. As a small business owner, you need to be focused on driving revenue and Financing Your Way can get you there. Let us show you that consumer financing can be an integral and lucrative part of your business!