More than ever, customers want to have access to financing solutions that are simple to work into their monthly spending plans, particularly for major purchases. What exactly is consumer finance for retailers, and how does it help them? Consumer-friendly and cheap point-of-sale (POS) financing enables customers to purchase mid to high-ticket items without suffering immediate financial hardship. Here’s how providing Point of Sale financing to your clients directly can increase sales.
Seventy-four percent of US cardholders believe that installment plans are good for budgeting and reducing the stress of making a major purchase upfront, according to ChargeAfter. As a business owner, it’s critical to comprehend how the user experience is changing and what your clients anticipate from a transaction. Therefore, it’s crucial to modify your payment alternatives to satisfy customer needs.
Consumer Financing helps your business
With a POS finance option, businesses may offer flexible financing to their customers, growing their customer base.
Giving your customers the choice of various consumer financing solutions, such as POS financing or BNPL loan, makes it easier for them to shop. If a customer is interested in your product but lacks the necessary funds, they can easily apply for financing through your platform and receive the funding they require. The advantages for you and your customers are the same whether you employ an internal resource or a third-party provider like ChargeAfter.
No matter what sector of business you are in, you are aware that offering a modest monthly payment method for any high-ticket transaction would be attractive to some customers and help them feel more comfortable with the price.
Benefits for Consumers
Many customers in the retail industry seek rapid gratification. They don’t want to hold off on getting the newest and best good or service. This indicates that they want greater access to entertainment-related things and that they are also prepared to spend money to improve their experience.
The demand arises out of a need in various businesses. For instance, many expensive operations are unanticipated, leaving the client frequently scrambling to cover these costs during a challenging period. They can receive the care they require without stressing about their money thanks to the availability of flexible payment solutions. Peace of mind can be provided by dividing these expenses into smaller monthly payments over a longer period.
Businesses that provide these alternatives in sectors as vital as these might benefit from aiding customers and their families by offering support through trying times, which in turn fosters loyalty.
How to offer POS Financing?
If you’ve concluded that your consumers require POS financing, the steps to providing low monthly payment options are straightforward—and with ChargeAfter as your tool, it has never been simpler. Here are some advantages that ChargeAfter merchant partners have experienced from giving clients financing options:
- Increase sales – With a POS financing solution, merchants may be able to improve their total bottom line by giving customers more payment options. Customers will feel more at ease making larger-ticket purchases, and if they can spread out their payments, they could even add extra to their order.
- Better approval rate – With additional payment choices accessible, businesses have more chances to give their clients the finance they need. Consumers have more than 85% of their applications approved thanks to ChargeAfter’s global financing network. The waterfall financing method and the substantial presence of reputable lenders in the marketplace are to blame.
- Increased AOV – You can be confident that the order value will improve with the aid of the financing platform. The basic explanation is that consumers can purchase more expensive things because they have greater freedom and flexibility. You end up with more customers who have more products in their shopping baskets.
Make sure to let your clients know that POS financing is an option once you’ve signed up with a platform like ChargeAfter. While you would initially believe that a loan option is only available to clients who are unable to pay the whole amount up front, some clients could appreciate the freedom of spreading the payment out over time. Giving every consumer this choice can raise approval rates as well as customer satisfaction.
Additionally, ChargeAfter prioritizes usability, guaranteeing a flawless application experience for both retailers and customers. Clients can register on their own time and get a preapproval judgment immediately because applications are available online, round-the-clock.
When dealing with ChargeAfter, the advantage of POS finance is that the customer receives the good or service they require immediately, and you, the retailer, are paid upfront. Our streamlined procedure offers you a way to grow and expand your company by resolving a market issue while also making financing more pleasant for clients. With ChargeAfter, you have a seasoned partner who comprehends both the needs of your clients and your company.
ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.