Why Every Business Should Offer Financing to Customers
We often consult with company owners who are interested in expanding their company’s customer base and revenue stream. Whenever possible, I advise clients to consider financing alternatives. In reality, studies have shown that supplying financing has a significant impact on a company’s bottom line.
When given the opportunity to pay over time, consumers are 30 percent more likely to make a purchase, according to a survey by the National Retail Federation. Businesses that provide financing alternatives saw a 50% increase in transaction value, according to a study conducted by the International Association of Machinery and Equipment Appraisers.
Providing payment plans is another method to attract buyers. The National Association of Retail Collection Attorneys reported that of the consumers who were offered financing choices, 61% made a purchase, whereas just 27% of those who were not offered financing made a purchase.
Financing solutions are a great way to increase sales and keep consumers coming back. Consumers who use credit to make a purchase are three times as likely to make further purchases, according to research by the National Retail Federation.
Please keep in mind that the sort of funding you provide will vary depending on the nature of your company and the goods or services you supply. If you own a home improvement store, for instance, you may find success by providing consumers with the opportunity to pay in installments for major projects like renovations and extensions. However, larger-priced goods, such as furniture or appliances, may be eligible for in-store financing.
Giving customers payment plans can be very good for a business's bottom line. Sales go up by an average of 30%, and the average transaction value rises by an average of 50%, when a company offers financing alternatives, according to studies. Furthermore, if you offer payment plans, you may increase client loyalty and attract new ones. If you want your firm to flourish, offer consumers financing.
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