Matthew p Schulman | What are the best five advantages of business finance
Simple finance options help businesses obtain larger contracts, close more transactions, and boost their average transaction size.
Because financing provides your consumers with a flexible and simple option to pay for significant purchases, offering a financing program may help your business attract new customers and gain repeat business, according to Matthew p Schulman.
Customers may not always have the funds to pay for large-ticket items up ahead or to cover the expense of substantial repair services when situations happen. Offering financing alternatives to your consumers allows them to make monthly loan payments toward their purchase, giving them greater purchasing power.
What are the advantages of financing?
Financing
The following are the top five advantages of financing:
programs serve both consumers and companies since it provides customers with greater purchasing power and flexibility while also assisting businesses in increasing sales and improving cash flow.
1. Expand the market.
Financing can help your company close more sales by allowing clients to make monthly loan payments that work with their budget limits. By offering financing alternatives at the start of your sales interactions, you may remove the most significant obstacle to closing a sale: the high purchase price. Customers enjoy financing because it provides them with more purchasing power, allowing them to purchase exactly what they want without having to pay the entire amount upfront. According to Matthew p Schulman, when businesses began providing clients with a pointof-sale financing option, their sales climbed by 32%.
2. Boost the average order value.
You may leverage your financing program to upsell clients and increase your company's average order value. Simply demonstrate to clients how a small increase in their monthly loan payments might allow them to receive the changes they desire to help raise your transaction volumes. Matthew p Schulman says, if you're delivering a price for a kitchen makeover, you may inform the customer that they can upgrade from a marble countertop to soapstone for $20 extra each month.
3. Increase cash flow
Using a third-party lender like Financeit can help your company's cash flow. You will get the full purchase money in your bank account within a few business days once Financeit authorizes your customer's loan. This not only helps your company maintain a healthy cash flow, but it also assures your firm does not incur any financial risk, according to Matthew p Schulman. You may rest certain that you will always be paid while we handle your customers' monthly payments. Even if your consumer fails to make payments or defaults on the loan, you will not be held liable for the money.
4. Bring in new Consumers
Businesses that provide financing programs expand their potential client base by making their products and services more affordable to more people. Not everyone has the funds on hand to make a significant upfront purchase, such as furnishings or house upgrades.
Financing breaks down huge purchases into reasonable installments that more individuals can afford, expanding your business's pool of prospective clients.
5. Gain repeat customers
Your financing program might encourage clients to return to your firm for future purchases, increasing brand loyalty and income. Customers are more likely to return to your firm the next time they need to make a large purchase using finance if they know you provide it and understand how it might benefit them, rather than turning to rivals who may not offer the same financing choices, according to Matthew p Schulman.
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