Technology has changed a lot of things, including the way people do business. Before, consumers used to move from store to store in search of goods that they need for their daily lives. These days most consumers are searching for what to buy online. They then purchase them or walk to the nearest store to purchase them.
Conducting businesses online has also changed the way borrowing is done. A few years back, people used credit cards to pay for goods and pay the credit card debt later. The mode of borrowing has changed, and the majority of consumers are using point of sale financing. It is now more practical to borrow from the merchant or the shop where you are purchasing goods at the point of sale.
Purchasing goods online has made it necessary to put in place online financing where buyers enjoy a buy now pay later policy. With more young people steering away from credit cards, POS financing offers a better option for borrowing. The POS finance model is very appealing, especially to younger demographics.
Also, merchants are finding the process more beneficial as they attract more customers. It also allows for more orders and ensures more customers complete their purchases. Whether you are running an eCommerce or a physical store, you need to know whether you need a point of sale financing platform for your business. Here’s why you should consider implementing point of sale consumer financing solutions.
If You Want High Average Order Values
Whether you are a new or old merchant, one of the things that will determine whether you need POS financing is the High average order values. It is critical to offer flexible options to your clients if you want to grow your business. Flexible options allow the clients to manage their finances by choosing what to pay in a lump sum and what they need to spread over a period of time. By paying for their goods without pressure, customers will increase their order values even more.
POS financing is attractive to many buyers who may not have all the money they need to pay for their goods at once. Other than buying the goods with flexible payment, the consumers may increase their purchases. They will also be sure to complete their purchases without abandoning their cart.
If eCommerce Is Your Major Sales Channel
If most of your business is online, POS financing is one of the best ways you can assist your clients in accessing high-value items. With a credit card option, they will be able to access most of the goods they want to purchase, however, there may be cash limitations and high interest rates to consider. At the same time, branded store credit cards may take a long time before they are approved. The process of getting POS financing takes only a few minutes, making it far more attractive to the end-user.
The best thing is that, once a buyer sees an item that pleases them, even when they do not have the total amount available, they can apply for POS financing and get the goods they want instantaneously. The fact that they can get financing without having to leave the store makes the process even more user-friendly, which also increases the possibility of buying everything in the cart.
If The Products In Question Are Durable And Long-lasting
If you are selling durable and long-lasting products, POS financing is a sensible decision. If you are selling something that buyers will use for an extended period like jewelry or furniture, they will spend time deciding. They will be debating whether to buy the item or not based on the high price that is usually associated with these types of products. Customers like evaluating the products and comparing them to other merchants before deciding to buy. That is why offering a flexible option could be the only thing you need to set you ahead of your competitors.
If You Are Struggling With Cart Abandonment
Many eCommerce merchants are struggling with cart abandonments. The best thing with POS financing is that it can help you increase conversion. Many buyers abandon the cart due to high prices. Offering a more flexible form of payment will decrease the possibility of abandoning carts.
Most young people like buying their goods online and are also looking for an alternative way of borrowing other than using a credit card. This is why POS financing has become an important tool for merchants as it helps to identify your customer financing needs.
It is also important to be sure of the best point of sale financing platform that suits your needs as well as those of the customers. Point Of Sale Consumer Financing platforms like ChargeAfter.com are invested in the needs of consumers and merchants alike by making it easy for customers to apply for the loan, confirm their eligibility, and receive their goods immediately.