Many small businesses don’t offer consumer financing and instead accept only cash. Doing this can actually be doing your own business a disservice. Financing is a great way to boost your business and give it the room it needs to grow. There are many reasons why you should consider implementing consumer financing to ensure business growth.
When customers can buy something on credit, it often leads to them making a purchase even if they otherwise would not have. Let’s say someone comes into your store to buy a vacuum but they don’t have the cash available to buy it right that moment. If there is financing available for an amazing vacuum, that person is more likely to make the purchase and worry about the payments later. This leads to more sales, which means more money for you. That’s one way to promote business growth.
Bringing in new customers is another method of growing a business and consumer financing can help there too. In fact, you can even pull customers away from competitors by simply offering credit. Someone might want to use your financing to buy something they need, knowing that leaves them with more money for other pressing matters. This can help the business in terms of not needing to spend as much on marketing. You’ll draw customers in by default.
Of course, increasing profits is the best way to push your business to grow. As you can see from the examples above, consumer financing can help with that goal. The first way it does this is by encouraging customers to buy more when they stop in to shop. Not having to pay the full price at the moment of purchase can loosen pockets and bring more money into your business. The second way this can increase profits and lead to business growth is by the incorporation of interest fees and other charges. This means you make more money each time someone buys on credit. You also have the option of waiving fees for excellent customers, which only serves to drive sales even more.
There are many ways to growth a small business, but consumer financing is toward the top. Just having the option available will give you more flexibility and can immediately raise your sales, allowing you to incorporate other growth methods. If you haven’t started offering financing in your store, the best time is now. At the very least, you should consider all of the benefits it can bring to your company.