Offering your customers finance choices, such as point-of-sale (POS) financing options and 0% interest credit, may be precisely what your company needs to succeed if you’re seeking ways to edge out the competition.
There are various financing solutions available. These solutions can help your clients proceed with getting your services. Providing finance solutions also helps you with your business in getting more clients.
What Is Customer Finance?
Customers can utilise customer finance, a payment plan, to buy products or services from your company. A third-party source you’ve associated with offers the customer financing, enabling them to immediately obtain their items and pay for the transaction over time.
Customer finance companies differ in how their repayment plan fees are structured: some offer interest-free plans, while others may charge interest or fees to customers for using the service. A merchant fee is usually required to provide the service to your clients.
How Is Customer Finance Offered?
There are two main ways to provide customer financing:
In-house customer financing – in which you set up and manage your monthly payments
Customer financing – is provided by a third party in which a provider manages the process of approving a customer for credit and keeping track of monthly repayments.
What Is In-House customer Financing?
If you want to offer in-house customer financing, plan on spending time managing the process and training employees. You’ll need to figure out how to verify a customer’s creditworthiness. You want to ensure you only lend to people who can repay you.
Depending on the volume, in-house customer financing can be much more time-consuming than a third-party customer financing service. You’ll need to create your process and track customer payments.
Because some third-party customer financing companies do not charge merchant fees, it may be more expensive if you need additional help to track the outstanding payments.
What Is Third-Party Customer Financing?
Third-party customer financing delegated to an outside provider the work of setting up and monitoring the programme. You offer your customers the option to pay with a financing option rather than running a credit check, offering financing plans, and tracking monthly payments.
The business is frequently paid in advance if a third-party payment provider approves a customer. As a result, your customer will pay the provider rather than you, as they would with a credit card.
This means less work for you, but there may be additional costs. For example, as a merchant fee, you may be charged a percentage of each transaction, though this may be comparable to what you’d pay to accept credit cards or other payment options.
Customer financing from a third-party provider can be obtained in the following ways:
- The business advertises the availability of a payment option: Depending on how customers make purchases, companies will either do so on their website when purchasing a product or at their point-of-sale system.
- If the customer chooses a financing option, the customer or a business employee can fill out a short application to apply for financing.
- The customer completes the transaction, and the business receives full payment: Approval should occur in seconds. The industry could receive full payment from the financing company if it is approved and the customer purchases.
- After making the purchase, the customer will receive the product and begin making payments to the seller.
Customer Finance For A Smooth Transaction
When trying to close a deal, the last thing you want is for your customer to say they can’t afford it. But what if you could offer them financing and get them the products or services they need now?
With creativity and understanding of your client’s needs, contributing to finance can significantly increase sales without breaking the bank. By following these simple tips, you can start offering financing options to your clients.
There are ways to get customer financing, even in the aesthetics industry. That is why faces have made it easy for you as a client and a medical practitioner. Create an account at faces and access the faces finance page to get more options when it comes to financing.
Download the faces app now.