Whether you have a retail business or you provide products and services to other businesses, you are probably looking for ways to expand your company and grow your income. One great way to do this is through consumer financing. These are some benefits you may experience through offering to finance your customers.

Cash Flow Increases

When you work with a third-party lender to offer your customers financing, you can gain better cash flow. This is because although your customers pay for your products or services with credit, allowing them to pay over time, you are paid within days. Offering to finance has a low risk for businesses. Instead, the finance company takes on the risk because you will never be held responsible for defaults or missed payments. Although your finance company will take a portion of your sales as a fee for offering their services, you will see an increase in your cash flow.

Increased Sales

Forrester recently conducted a study that showed that sales increased by 32% in companies that offer financing. You see, when you offer credit, your customers gain flexibility because they don’t have to pay for their entire purchase upfront. Instead, they make payments over time.

This form of credit expands your market and sales because more consumers can afford to purchase your products or services. This is especially true for companies with high-valued products or raw materials or parts suppliers whose order sizes tend to be quite large. However, even retailers or wholesalers can increase their customer base and sales by offering to finance. Be sure to discuss your consumer financing options at the beginning of your sale or lead conversation.

Average Order Size Expands

When you offer financing to your customers, they are more likely to purchase more each time they make a purchase. Because they aren’t responsible for the entire payment upfront, but they can pay over time, your customers will be more willing to spend more. Not only will they willingly purchase what they are looking for, but they are more open to your upselling efforts. These expanded order sizes will go a long way to improving your financial position.

Encourage Repeat Business

When you offer to finance, your customers become more loyal to your company. Their loyalty will encourage them to return again and again, increasing your revenue. You see, these clients feel as if you truly care about them and their needs. They see how you serve them by offering to make their financial burdens lighter. They can get what they need when they need it.

Consumer financing benefits your company in several ways. Do some research to find out how offering financing can help you grow your business.

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