Customers are not always in the right financial position to make a large purchase, and if the goods or services your business provides are valued outside of their budget, consumers will take their money elsewhere. That’s why some businesses offer consumer financing options to their customers. Instead of paying the total cost upfront, customers can pay off their purchase incrementally, thus expanding the customer’s options. If your business has highly valued goods or services and enough capital to offer financing to your customers, consider implementing a plan.

Make Things Easy for Your Customers

For the most part, this type of financing is targetted at new customers rather than existing ones. New customers are more likely to be put off by high prices, but if they’re offered flexible financing options, the likelihood of them purchasing your product or service increases. Customers like their shopping experience to be as easy as possible, and with consumer financing, credit checks are typically not required and a wide variety of loan terms and interest rates are offered. In fact, many financing options are free. It’s no surprise that customers typically prefer zero-interest loans and no hidden fees, so offering a free financing option would be lucrative for customers. Being as upfront and affordable as you can be with your options will best help you increase your customer base.

Advertise Your Financing Options

If you’re newly implementing a financing plan, let your customers know! Online stores can do this simply by adding the notice to the front page of the website and making it an easy-to-find option at checkout. Additionally, show customers what their payments would look like with these new options. For example, if a custom piece of jewelry is sold for $300 on your website but you’re offering customers the option to finance with no interest over a four-month period, list the price as $75 per month. Seeing a lower price makes customers much more likely to purchase your goods and services. Don’t forget to display your options in store. Additionally, if you notice a customer is wary about price, don’t hesitate to inform them about their financing options.

Improve Customer Loyalty

Consumers seek out businesses that cater to their needs. If you offer financing options, sales will actually increase, since it increases the number of people who can now afford to purchase your products or services. Retaining a strong customer base is essential to any small business, and offering excellent customer service in the form of consumer financing can help.