Financing is typically associated with big-ticket items, like cars and homes. But thanks to consumer demand for more flexible payment options, POS financing (short for “point-of-sale” financing) is making its way into everyday purchases.
As a business owner, you know how important it is to sell your product to as many people as possible without lowering your prices and sacrificing your bottom line. But maybe it’s never occurred to you to offer financing at your place of business—or perhaps you’ve balked at the idea because of its reputation as a payment option for only very large purchases. If you’re still uncertain about POS financing for your business, keep reading.
Are many of your customers impulse buyers?
Impulse buying is big business, with recent numbers suggesting the average American will drop more than $2,000 impulsively this year. That’s a sizeable chunk of change. Point-of-sale financing, which can be quickly completed at the cash register, effectively gives your customers more buying power. Suddenly, that pricey purchase doesn’t seem so out of reach thanks to the option of paying for it in smaller installments over time.
Do your customers ever mention your high prices?
Although these interactions can be uncomfortable, they’re pretty common, especially if you sell high-end goods and services or your average transaction totals more than a couple hundred dollars. If you frequently interact with customers who ask about prices, inquire about discounts or sales, or simply grouse about how much they’re spending, POS financing may be a suitable option. These interactions provide a natural segue to bring up financing as a way to facilitate the sale without lowering your prices. Best of all, POS financing through LendingUSA lets you get paid up front soon after the loan is originated without assuming the risk of loan payment default.
Are your customers frequently making unexpected purchases?
Unexpected purchases are a little different from impulse buys, although the end result is the same—the consumer spends money that he or she didn’t anticipate spending. Because many Americans simply don’t have a robust emergency fund, hassle-free point-of-sale financing can be a welcome offering at the register.
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