If you have a business that sells relatively expensive products, you should consider offering point-of-sale (POS) financing. This allows you to offer credit to your customers at the point of purchase based on their income and expenditures. Below are the potential benefits a POS lending system can render to your business:
Increases your sales
Customers often have difficulty buying an expensive good or service if their financing is inadequate. Having a POS financing option allows you to close a sale since the money needed is available and at the point of purchase. The net effect is an increase in sales.
Convenience for your customers
A POS financing gives you a competitive advantage over your competitors. The customers feel that you care about their needs. The convenience offered by the service will allow a customer to save time and cost of seeking credit somewhere else.
The customer is also able to get the goods on the spot rather than waiting until they have enough money to make a purchase. The overall result is a positive shopping experience.
Instant financing decision
The best thing about this kind of financing is that your customer will be able to know if they qualify for the loan or not. They do not have to wait for hours or days before they can get a decision. The approval of the loan is instant, which allows them to use the funding to purchase the product they need.
Customers can access the financing on the spot. The application process also tends to be quick and easy, and some POS financing systems are easy to use. Additionally, the payments plans and credit rates of most providers are competitive. These advantages allow a customer to prefer this form of financing rather than seeking one elsewhere.
A POS financing option can mean the difference between making a big sale and watching your customer walk away due to lack of funds. However, when considering the best provider of this kind of financing, remember to put your needs and those of your customers into consideration.