Making the decision to use a customer financing program can be simple.
The first thing to consider is whether or not it is a logically sound decision for the company to offer financing to customers. If products are inexpensive or very reasonably priced, then providing options for consumer finance may not make sense for you. On the other hand, if you are a mechanic who wants to open his own shop, then it makes perfect sense to offer financing for auto repair to your customers if and when they need it. It is also very important to know your customers and explore the economic wherewithal of the consumer bases that you serve. If your customers are fairly affluent or can simply afford to pay for your goods and services upfront it may not be beneficial to offer customer financing.
Consumer financing is a tricky field to navigate and if you are entering into this arena for the first time, beginners’ luck may not be applicable. Financing Your Way understands the difficulty inherent in figuring all of these nuances out for your business, even when it seems overwhelming to you. Should you offer customer financing if your average buyer needs a payment plan? What if the customer ends up defaulting on the loan or payment plan? How do you absorb those costs? It will also become necessary to be able to comprehend credit requirements and explore all of the options for your business that can be extracted from offering consumer financing.
Being able to offer professional financing is often a boon to customers who often can’t afford to spend thousands of dollars at a time but can manage a smaller monthly payment. Offering customer financing also widens your consumer base because it allows people to engage with you who would normally defer to other companies that they may be better able to afford. Whatever you do, it is wise to engage with wise professionals, like our team at Financing Your Way, in order to make the best decision for your business.