Now more than ever, consumers expect to have financing options that can easily fit within their monthly budgets, especially when it comes to large purchases. As a merchant in the retail world, here’s why you should be asking yourself, “What is POS financing and how does it work?” Point-Of-Sale (POS) financing is a consumer-friendly, affordable way for consumers to buy mid- to high-ticket items without breaking the bank in the short-term. Here’s how offering POS financing directly to your customers can help boost your sales.
According to ChargeAfter.com, “Seventy-four percent of US cardholders think installment plans are helpful for budgeting and assists in alleviating the stress of making a large purchase upfront.” As a merchant, it is always important to understand how the customer experience is evolving and what your customers expect from a transaction. As a result, adapting your payment options to meet the needs of customers is critical.
How Does Offering POS Financing Help my Business?
Simply put, more ways to say “yes” means fewer ways for customers to say “no.” With a POS financing option, merchants can add flexible financing to their offerings, and the pool of potential consumers expands.
Here’s a scenario to consider: You’re a pet retailer, and this amazing family finds a dog in your store who adores their kids, but the price tag is more than they expected. Instead of getting puppy eyes from their children, POS financing can help you complete the transaction with payment installments that are reasonably within your customer’s budget. Now, they get to take the puppy home that day and you get the sale immediately because your store offers a convenient payment option for the consumer. Cha-ching and a win-win!
Regardless of the industry you operate in, you know that a low monthly payment option for any high-ticket sale would be an appealing offer for some buyers, making them more comfortable with the price tag. At LendingUSA, our innovative approach to financing can lead to more approvals for your customers.
Why Do Consumers Want a POS Financing Option?
In the retail world, many consumers want instant gratification. They don’t want to wait to have the latest and greatest product or service. Not only does this mean they want more access to items that can provide entertainment, they are also willing to splurge to make their experience more enjoyable.
In some industries, the need is out of necessity. For example, many costly medical procedures and funeral arrangements are unplanned, often leaving the consumer scrambling at a difficult time to fund these expenses. Having access to flexible financing options helps them get the care they need, without worrying about their finances. By spreading out these costs over time with lower monthly payments, peace of mind can be offered.
Merchants who offer these options in essential industries like these can experience the reward of helping a consumer and their families by providing support during a difficult time in their lives, which in turn builds loyalty.
How Can I Offer POS Financing?
If you’ve determined a need for POS financing for your customers, the steps to offering low monthly payment options are simple—and with LendingUSA as your tool, it has never been easier. Here’s how merchant partners of LendingUSA have benefitted from offering financing options:
- Increased Revenue: With more payment options for customers, merchants can potentially increase their overall bottom line with a POS financing solution. Not only will customers be more comfortable with a higher-ticket purchase, but they may even add more to their purchase when they can pay over time.
- More Approval Opportunities: With more payment options available, merchants have more opportunities to provide the financing their customers are looking for.
- Fast Decisions: Because customer experience is our top priority, applicants can receive a pre-approval decision in seconds with LendingUSA.
Once you’ve enrolled with a POS financing platform like LendingUSA, make sure that you communicate to your customers that it is available. While you may initially think that a financing option is only for those customers who cannot pay the full price upfront, there may be others who simply prefer the flexibility of spreading the cost over time. Offering this option to every customer can increase satisfaction as well as approvals.
Plus, with LendingUSA, ease-of-use is a priority, ensuring a seamless application experience for both merchants and customers. With applications accessible online, 24/7, customers can apply on their own time and receive a preapproval decision in seconds.
When working with LendingUSA, the benefit of having POS financing is that the consumer gets the product or service they want or need right away and as the merchant, you get paid upfront. Our simplified process helps to make financing comfortable for consumers and gives you a way to scale and grow your business by solving a problem in the market. With LendingUSA, you have an experienced partner who understands your business and the needs of your customers.