Comedian Jerry Seinfeld once declared that there’s no such thing as fun for the whole family. Likewise, one-size-fits-all clothing options usually don’t fit anyone. And restaurants have had a hard time nailing down the perfect portion size for all appetites.
Why is it so hard to find a single option that makes everyone happy? In the simplest sense, it’s because everyone is different. People have different preferences, personalities, and expectations. And when it comes to the world of finance, they have very different financial backgrounds.
That means that offering limited lending options for consumer financing is the equivalent of selling one-size-fits-all shirts. Sure, you could do it, but you’re greatly limiting the size of your customer base. Offering numerous lending options is the best way to ensure that your customers can find the right credit option for their particular needs. And it all starts with nailing down the Perfect Lender Lineup™ for your business.
Something for Everyone
When it comes to credit scores, the lending options you’ll make available to your customers fall into roughly three categories: prime, near-prime, and tertiary. As you might expect, prime consists of the best credit scores, near-prime is good but not quite as good as prime, and tertiary is for individuals who either have credit issues or haven’t been able to build credit yet.
In the case of young people, the credit system can often be confusing. There is sometimes an expectation that you start out with a high credit score that is then reduced based on negative credit items. The concept of building credit can be confusing and intimidating, so having options available is nice for these individuals who are just starting out. Additionally, for people who have had credit issues in the past, being able to take advantage of financing in spite of previous credit problems is a wonderful feeling.
For those with better credit, the prime and near-prime customers, you want to have lending options distinct from the lower tiers, because that is what they’ll expect. Failing to offer lending options for all credit tiers means you will leave a certain percentage of customers behind. And they’re sure to head down the street — to your competitor.
Capture As Many Sales As Possible
Let’s compare your lender lineup to a net. The bigger your net, the more sales you will catch. If you have a very small net (e.g., a group of lenders that are only tailored to those with very high credit scores), you’ll miss all the other potential sales that are swimming by.
Establishing your Perfect Lender Lineup™ means setting up a suite of lenders for every category of customer that walks in the door. Having a lending option for every credit tier raises your credibility and establishes trust in the mind of your customers. And by using FormPiper, you’ll be able to run all lenders without having to enter duplicate data, saving valuable time and effort on the part of you and your staff.
You want your customers to feel welcome and to know that you want their business. Perhaps the biggest benefit of offering multiple lending options is creating that feeling of welcomeness in your customers’ minds.
Let’s imagine that there are many similar selling points between you and your competitors. Similar products, a similar level of service, and a similar commitment to offering consumer financing. The wider variety of lending options you offer could very well end up being the factor that sets you apart from the competition and closes the sale. So offer a broad range of lending options and make sure you enable as many of your customers as possible to take advantage of consumer financing and purchase the products or services they need. It will make your business stand out in their minds for years to come.