Oftentimes, when a customer has their heart set on a product, they’ll do anything they can to purchase it. But a few things might get in the way, including if the price point is slightly beyond their current means. This used to mean that your business couldn’t get the sale until a later date, but did you know that it doesn’t have to wait?
Layaway programs and complicated repayment programs were once the answers to this problem. But with point-of-sale financing, you can offer your customers a quick and convenient solution that leaves everyone happy in the end. If you’re a business owner, this might be exactly what you’re looking for.
Have you heard of point-of-sale financing before? Perhaps it’s been tossed around as a potential option for your business in the past? There are numerous benefits that come with adding point-of-sale financing, and considering it could actually bring your business even more sales and customers. But here are a few things that you should know about point-of-sale financing before you make your decision.
What Is Point-of-Sale Financing?
Maybe you’ve heard of point-of-sale financing, maybe you haven’t, or maybe you’ve even offered it and didn’t know what it was called, but now it’s time to really find out if it’s the right fit for your business.
Point-of-sale financing is essentially consumer credit with your business. Say a customer wants to purchase a high-priced item from your store, but they’re unable to pay for it all at that time. With point-of-sale financing, a customer can apply for a loan with your business and be approved almost instantly. With that loan, the customer will be able to spread out the payments for the purchase and be able to leave with the product that day. Having this financing option available can ensure that you don’t miss out on a sale because of your customer’s current finances.
How Does It Work?
If you’re offering a point-of-sale financing solution, the process looks like this: When a customer proceeds to purchase their product, they’ll be given the option to use the point-of-sale option to finance their purchase. Different from offering a credit card, this option allows them to split their payments up and know beforehand how much they’ll be obligated to pay every month until the balance is paid off. It’s that simple.
This option is more appealing to customers than signing up for a credit card because there’s usually little-to-no interest added. And if there is interest, it’s laid out for the customer and included in each total monthly payment beforehand. This kind of transparency is usually appreciated and well-received, making it that much easier of a decision for your customers to continue with their purchases. It also works better for customers than layaway because they can take the product home with them that day.
After learning about this option, the customer will fill out an application for a loan that does a soft credit check—meaning it won’t show up on your credit report. The approval process doesn’t take long, and once approved, the customer will be able to agree to the payment process amount and leave with their purchase.
The best way to go about informing your customers of this option is to make sure they know about it before they get to the register. Marketing it beforehand lets them keep it in mind while they’re browsing the store, and it can lead to more concrete sales.
Point-of-Sale Financing Can Also Be Done Online
The massive growth of online shopping is undeniable, which is why point-of-sale financing should also be an option on your website. As a business, you want to be able to reach more than just the people in your direct area, which is why you’re probably already set up with an online shop. And if your online store features high-priced items, point-of-sale financing can really come in handy for increasing your sales.
People may be more willing to buy big-ticket items from the comfort of their homes anyway, and if they’re on the fence, you want to make sure they have every option that encourages them to make the purchase. Point-of-sale financing online works similarly to the way it does in-person, by letting the customer apply for the loan and offering them a payment plan that works for them during the check-out process. As e-commerce grows, make sure your business is growing with it by having point-of-sale financing as an option for your online customers.
Benefits of Point-of-Sale Financing
When you add point-of-sale financing to your business, know that it comes with a lot of benefits. Central Willamette Credit Union wants your business to thrive using this system, which is why we offer a simple, web-based system that doesn’t require difficult software installation. You’ll be able to pick this system up quickly after we get you set up, and you won’t have to be a tech wizard to do it.
Aside from the ease of this simple system, we also offer financial benefits, such as competitive financing rates, with the option to earn 1% on loan amounts financed. You’ll also have access to local credit union financing. How Can I Get this Option for My Business?
Having point-of-sale financing for your business is easier than ever, especially when you bank with Central Willamette Credit Union. We are able to assist you with the process, taking care of all the heavy lifting while also offering you amazing benefits on top of that. If you’re interested in setting up point-of-sale financing today, you can stop by one of our six convenient locations in Oregon or call or email us. Our staff is eager to help you navigate this process and welcome you to our Central Willamette Credit Union family.