Are you a business owner or running a brand? Are you thinking of providing financing to your customers on your products/services? Well, financing can be a great step towards boosting sales and attracting customers.
More and more customers will buy high-values services/products via financing. It also helps in building a better customer relationship. Today, financing is present in almost all sectors to fulfill the demands of customers.
Many customers who can’t make big purchases can land you big contracts via financing. Financing not only increases your target audience but also helps in building a brand reputation. Also, refer to the Wisconsin Builders Association Reviews to know more about the latest business trends in construction & housing. Read on to know the top ten benefits of offering financing to customers in any business.
Increased Sales
Providing financing plans to customers will help you in increasing your sales. More and more customers will be able to buy high-valued goods/products via financing offers. They will only have to pay an initial amount, and the rest can be paid in installments.
Offering financing to customers addresses their budget constraints. They will opt for high-valued products if they know that there is no requirement of paying the whole product/service amount upfront.
Offering financing to customers increases their purchasing power, thus leading to more sales. You should always introduce your financing plans to the customer early on so that they view your products/services accordingly.
Upgraded Sales
If any particular product of yours is expensive and doesn’t attract a lot of customers, you can use financing to mobilize your high-valued products. A little rise in their monthly installment can help customers to opt for upgraded products/services.
For example, suppose you are selling a financed kitchen plan with sandstone finishing to customers at $30 per month. A financed kitchen plan with marble finishing is available at $35 per month. You can motivate customers to increase just $5 in their budget and opt for the upgraded version.
Enhanced Cash Flow
Sometimes a business may witness off-seasons and could not record enough sales. Offering financed products to your customers will ensure that you will get paid every month or at fixed intervals. The cash flow of business is maintained by providing financing to your customers.
There are several risks associated with offering financing options to customers, like non-payment of dues, fraud, etc., which can be avoided by proper study of customer information. You should try to provide financing services to customers with a high credit rating.
You can take the aid of various third-party lenders who provide you the full amount of financed product/service and collect it from the customer timely.
Diverse Userbase
If your products/services are high-valued, they will not attract the common population. You will only have HNIs (High Networth Individuals) as your customers. Offering financing options to your customers will help you in attracting customers from all sections of society.
Not everyone can make large payments upfront. Offering financing services on your products/services will help you to attract a large pool of customers. You can also fulfill a customer’s dreams by offering financing on your products/services.
Besides gaining a diverse userbase, you will also win customer loyalty & trust by offering financing on your products/services.
Gain Repeat Business
Offering financing options to your customers encourages them to shop again and again from you. Financed products build brand loyalty and encourage customers to come for more. You can also provide multiple products/services on finance to the same customer for maintaining a healthy customer relationship.
Once the customers have understood the benefits of financed products by shopping with you, they will be hungry for more. Repeat business is a good sign for any business owner as it shows customer loyalty & preference.
Curb The Competition
There are numerous businesses and start-ups in the market, and you have to make your brand stand out from the rest. Offering financing services will help you in standing out amidst the crowd and gain a respectable market share.
More and more customers from all sections of the society will come for financed services/products, which will help you in curbing the market competition. If you are failing to produce the quality products/services as your competitors, offering financing can help you still compete with them.
Better Customer Relationship
Customers will stay connected to your business while paying their timely installments. They will visit your shop, business center, etc., numerous times, thus getting familiar with your services & products. It also helps in selling the latest offers or personalized products/services.
Even if your customers are paying installments via online mediums, you can still stay connected to them via payment reminders, email, social media sites, etc. It also helps in knowing about the customer’s buying habits and patterns.
Tackle Inflation
Offering products/services on finance locks the loan rates for a defined time. If somehow, the price of your products/services falls in the future due to market disruptions, you will still receive the installments based on the prefixed cost.
Market disruptions are unpredictable, and business owners have witnessed it recently due to the COVID pandemic. Offering products on finance will assure a minimum amount of earnings every month or during every installment.
You will be signing a lease along with the customer opting for your financed product/services, which will make you immune from rate/market fluctuations.
Interest Generation
High-valued products/services can generate more revenue than their actual price in the long run due to financing. The interest rates added in financed plans will also help you in getting more revenue from customers.
Many times, a financed product is sold at a higher price than its remaining price during the completion of a lease. This also helps in generating revenue and also ensures the reusability of your product/services.
Stay With The Trend
Almost all types of products/services are available on finance in the market. Offering financing options to customers is a growing trend which not only attracts more customers but also increases sales. You can keep up with this trend and make the most of it.
Conclusion
You can also search about how to offer financing to customers to boost sales to know about the various financing plans/options. Financing is a key strategy that can help in the growth of your business. Offering financing options to customers can also be useful in attracting customers post-COVID and revival of your business. Start offering financed products/services to your customers!
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