How to Offer Financing to Customers

When customers see a price on a necessary purchase, they may experience overwhelming feelings of disappointment or frustration. You can help those customers prevent these feelings and make immediate purchases by offering point-of-sale personal financing options.

Offering your customers financing loans like those through LendingUSA will reduce friction in their purchasing journeys. You will also yield significant benefits for your business, including increased profitability and a boost to your brand image. In fact, a survey from 2018 found that 76% of consumers are more likely to make a purchase if a simple and seamless payment plan is offered.

If you’re unsure how to offer financing to customers, it will help to learn about how to overcome some of the common obstacles associated with point-of-sale loans and how financing promises to benefit your business and customers.

Obstacles to Offering Loans (and How to Overcome Them)

You’ll encounter three key hurdles as you explore ways to offer customers personal financing. These include:

Finding a Reputable Lender

While many personal financing options are available, only a handful have refined application and lending processes while offering clear, favorable terms and straightforward procedures.

Carefully consider several different programs before choosing a vendor to provide financing for your customers. To ensure your personal financing program enhances the customer experience, you should partner with a reputable company like LendingUSA.

Some of the critical attributes of loans through LendingUSA include transparent terms, clear repayment periods, and a rapid approval process. Our program and procedures have been carefully crafted to facilitate a seamless experience for your customers.

Incorporating Financing into the Sales Process

The checkout process for every transaction must be seamless and efficient. Inadequate checkouts can cause friction in the buyer’s journey and hinder your ability to serve other customers.

When you begin offering personal financing at the point of sale, you’re adding another step to a process that should be streamlined and efficient. The question is: How do you begin offering your customers financing without transforming the purchasing experience into a drawn-out and tedious affair?

The solution is to select a lending program that includes a condensed application and a rapid pre-approval process. With a seamless platform integrated into your existing processes, you can enable your customers to apply for financing quickly and easily.

Ensuring Customers Can Easily Manage Their Loans

When you begin offering personal financing to customers, you turn one-time interactions into ongoing relationships that can significantly impact how consumers view your brand.

If you partner with a lender that offers unclear repayment terms or requires consumers to make payments through a confusing or frustrating platform, your customers might develop negative sentiments toward your company.

On the other hand, when you choose a lender that makes it easy for customers to finance purchases and repay their loans, these same clients are more likely to look favorably on your company.

When searching for a lending partner, ask to demo their merchant and payer portals before selecting a customer financing partner. These demonstrations will allow you to put yourself in your consumer’s shoes and provide a look into how they will interact with your financing vendor.

Benefits of Providing Customers with Personal Financing

Offering personal financing solutions to your customers can yield multiple direct and indirect benefits for your business. By partnering with LendingUSA for financing options, you can stand to:

Increase Sales

Imagine the potential for your sales numbers if every customer could afford to purchase necessary products or pay for essential services without taking on disproportionate financial burdens.

Offering financing can lead to measurable additional monthly sales, allowing your business to experience measurable profit increases. In turn, this additional revenue can fuel the continued growth of your business.

RBC Capital Markets, a global investment bank, estimates that allowing customers to buy now and pay later increases conversion rates 20% to 30%.

Loans through LendingUSA not only allow you to boost sales but also ensure you get paid promptly. Any time a customer finances a purchase through LendingUSA, your business will receive funds fast—typically within just a few days of the initial transaction.

That means you can use personal financing services to increase sales without compromising your revenue stream or contending with problematic funding delays.

Build Loyalty with Consumers

Offering personal financing solutions is an excellent way to build loyalty between your customers and your brand.

When consumers need to pay for costly healthcare, pet training, or sporting goods products and services, they tend to remember the companies that made these benefits accessible by providing flexible financing solutions. In the best-case scenario, their gratitude will lead them to do business with your company again.

Building loyalty is essential to the long-term success of your business.

Fostering feelings of commitment to your brand will encourage repeat business, lead to higher sales, and increase the average lifetime value of your customers. Strengthening your reputation among your existing customers can also net you new ones thanks to word-of-mouth advertising.

Provide a Positive Purchasing Experience

Paying for a service or purchasing an expensive product shouldn’t elicit feelings of stress and regret. Instead, these transactions should leave your customers feeling like they’ve benefitted in some way. This holds true even if the customer is paying for a service to address an unexpected life event or emergency.

Offering personal financing to your customers can lessen the stress associated with making big-ticket purchases. It can shift their perspective and make the experience positive rather than a point of frustration.

In short, providing a positive purchasing experience will increase overall customer satisfaction, which will only have positive outcomes for your business.