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Smart Strategies to Manage Consumer Financing Effectively

Smart Strategies to Manage Consumer Financing Effectively

Published May 23, 2024

Smart Strategies to Manage Consumer Financing Effectively

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Manage Consumer Financing Effectively

Looking for a way to increase sales, attract more customers, improve cash flow, and foster customer loyalty? Consumer financing options put more purchasing power into the hands of your clientele so they are more likely to buy your products, hire your services, and boost conversion rates for your business.

The biggest obstacle for potential customers deciding to proceed with a purchase of any big-ticket item or high quality services is the cost. They may be able to afford what they want to buy, but the price of the purchase may not fall in line with the monthly budget, especially if they have to pay the full price upfront at the time of the transaction.

But your customers don’t have to pay upfront, not with consumer financing options through Fund My Contract. Our network of third party finance company partners are ready to work with you to develop the financing programs that fit your business and your clients’ interests best.

The result is more revenue, faster growth, and more prospects for expansion by giving consumers more options and fewer reasons to object to the cost. Consumer financing programs through Fund My Contract can help you reach more customers and bring more income into your business.

How Consumer Financing Options Can Help Your Business Grow

Consider all of the barriers to conversion that any business owner, big or small, faces each and every day. If you’re a contractor, your services are needed for a renovation or repair job and you submit a fair cost estimate that reflects the value of your labor skills and allows you to maintain a healthy profit margin to grow your business. If you’re selling a product of any kind, the price you charged is a representation of the costs that went into developing and manufacturing that item and the fair market value of the product is reflected in that price.

But maybe the cost of the product or the service needed are outside of the customer’s budget range or the customer had anticipated a lower dollar figure, even though the price of the product or the cost of the service is more than fair and affordable. When this happens, the customer’s response is to let them “think about it” or they decide to shop around for a better deal on the same product or service.

In either case, the interaction with that customer has not resulted in a sale and no revenue has been generated in the process.

So what’s the solution? Wait for the customer to come back around? A customer who says they need to think about it and they will circle around again in the next week or next month, usually never returns. You’ve lost that customer for good and the dollar figure that sale would have represented is no longer going into your business.

Lower your prices? If you keep doing that, you will start to wear away at your profit margins and the less profit you bring in on each sale will only prolong the inevitable.

Neither of these options are conducive to growth, in fact, they’re only effective at ensuring the eventual demise of your business.

But when you offer your customers a range of innovative and robust consumer financing programs through Fund My Contract, you don’t have to resort to dropping you prices in a desperate bid to survive in the marketplace and your products don’t have to sit on the shelves collecting dust while hesitant potential customers keep you hanging on the line for who knows how long.

When you offer consumer financing, you are emboldening your customers to move forward with the purchase of your product or service by making the cost more affordable and splitting it up over a series of monthly payments instead of one lump sum.

Consumer Financing Programs Through Fund My Contract

Our diverse network of third party providers will assist you in developing the customer financing programs that fit your business best and meet your customers’ needs when it comes to providing the the ultimate customer experience.

Offering consumer financing options requires knowing what makes your customers tick. Some customers may want to take part in a financing program that offers low monthly payments, some customers may want to take advantage of flexible payment options such as longer terms or promotional interest rates.

Happy customers are repeat customers and when they know you offer carefully considered consumer financing programs designed to meet their needs, you’re increasing customer satisfaction which leads to more sales through recommendations of your product or services to friends and family.

Providing consumer financing lowers the barriers to conversion as customers who were hesitant about making a purchase that was out of his or her monthly budget is now affordable over low monthly payment plans. Your contracting services are now within reach for customers who no longer need to think about giving you the greenlight to begin work on that home improvement job with the availability of a consumer financing program that doesn’t force the customer to pay upfront in full.

Get Paid Quicker When You Offer Consumer Financing

You’ve made your sales pitch to the customer or submitted a competitive bid for the work you provide. The customer has decided to convert on the purchase and chosen the consumer financing option that fits his or her financial situation best.

Your business gets paid in full at the time of the transaction. The customer enters into the financing agreement with the lender that was able to provide the financing needed. You generate revenue faster and the days of chasing after unpaid invoices from non-paying customers are over.

Consumer Financing

Manage Your Consumer Financing Options to Reach Your Target Audience

As a business owner who wants to focus on growing your business, cash flow is an essential component of operating a successful enterprise and when you can increase sales and conversion rates by providing customers with affordable financing options, you’re positioning your business to thrive and succeed in a competitive marketplace.

But simply offering financing options to the public isn’t enough, you need to know how to effectively manage your consumer financing programs so that your customers are compelled to take advantage of them when it’s time to close a sale.

It starts with contacting the consumer finance experts at Fund My Contract. We connect you with our third party providers who will help design a range of consumer financing program options with you to meet the financing needs of your customer base.

Consider Your Marketing Strategies

Get the word out early. Now that you’re working with the leader in consumer financing and you’ve chosen the customer financing programs that you believe will increase your customers’ purchasing power, it’s time to let everyone know.

That means including this information in your marketing materials and advertising strategies. Giving your customers the knowledge that your business offers financing will help drive traffic to your website and/or your brick and mortar shop. Better yet, they can approach your business with the peace of mind knowing you’ve given them choices in paying for the products or services you offer. That empowerment can have a positive effect on the customer’s willingness to convert on a sale, make more purchases, and put more money into your business, not to mention enhance customer satisfaction in the process.

Remind Your Customers about Financing Options

Even with a thorough marketing strategy that puts your consumer financing programs front and center in your advertising and social media channels, it always helps to give your customers some subtle reminders of the finance options your business has available for customers who qualify.

If the cost of a repair or the price of a product has left new customers uncertain on whether or not to close a sale, gentle reminders are always a good way to help those customers decide. Whether it’s placing colorful and eye-catching consumer finance brochures at a point of sale position or adding flashy reminders on your website, make sure your customer is aware that you offer financing and even lay out some of the the payment options that are available to make that purchase more affordable.

Have the Ability to Explain Your Flexible Payment Plans

If you don’t understand how your consumer financing programs work, you can’t successfully pitch the customer on participating in a finance program to complete a purchase. That’s why it’s so important to learn everything about how the programs you’ve chosen work and the benefits of offering these programs to customers so they can make informed decisions.

Your customers may have questions about these programs, from the amount of consumer credit information that is requested on an application to the role credit scores play in getting approved for the financing they need to complete the transaction with your business.

Customers without excellent credit can still have access to the financing options you offer through Fund My Contract, as other criteria plays a role in the approval process. For customers who are worried that credit checks on an application could have an adverse impact on their credit history, only a soft pull is initiated and it won’t affect their score.

These are just some of the questions you may encounter. It’s important to learn everything about your financing options so you can educate the customer on the programs you offer.

Consumer Financing for Your Business

Call Fund My Contract Today and Let's Talk about Consumer Financing for Your Business

You don’t have to wait to grow your business. Call Fund My Contract today and we can explain everything you need to know about how to offer customer financing to your customer base, which programs may be the most beneficial for your type of business, and the application criteria your customers will encounter.

The sooner you can offer consumer financing to your customers, the faster you can see your business grow in the marketplace.

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