A robust yet simple consumer financing program will help you boost sales, grow your business, and build customer loyalty. Higher approval rates will allow you to acquire more new customers and foster repeat business from existing customers who trust your product or service.
Promoting affordable payments early in your marketing approach overcomes the “I cannot afford it” objection before the words are mentioned by your prospect.
As a Member of Fund My Contract, you have access to a wide range of Lenders who will approve applicants with Prime credit but also those with Near Prime and Sub Prime credit.
Increasing Your Revenue!
Multiple lenders means innovative solutions for increasing your customers' spending power:
*varies by vertical market
The process is simple: Once you obtain a Fund My Contract membership, you then select the lenders with whom you’d like to work and apply for approval to participate in their lender programs. We will build your company a custom waterfall of lenders. Prime, Near Prime and Subprime credit tiers available. This cutting-edge technology was created to make it extremely easy to use multiple lenders via the same application. This makes it easy for Operations as well as Sales. Programs will include promotional offers to help you close more deals.
Below we have ancillary Information. We hope you find it educating and informative. Contact us today to get started or with any questions
‘Consumer Financing’ refers to a lending arrangement in which a business or a retailer provides financing alternatives for customers who are unable or unwilling to pay for goods or services at the time of a transaction. Through consumer financing, your customers need not have available funds to pay for their purchases upfront, but instead, pay in full over time.
Let’s say you are selling a product for $5000. This could be considered a ‘high-ticket’ item that might reduce the number of customers able to buy that item. But if you can sell the same product at that price and give your customers the opportunity to pay over time instead of the full price in one lump sum, you can make that item available to a wider group of potential buyers.
You could offer affordable payments over 36 months on that $5000. Depending on your business vertical, payment terms can be up to 15 years.
This payment arrangement is provided by a third party lender who supplies the business with an upfront payment upon purchase and the customer makes payments on the amount to the third party. The third party might charge the customer interest much like a credit card company or, in some cases, no interest is owed on the purchase payment.
The terms of a consumer financing contract must be disclosed so that all parties are fully aware of their responsibilities before entering into this type of loan arrangement. The following include some of the terms that must be included in such a contract:
If your consumer financing company intends to charge interest, the contract should outline the fixed interest rate on the loaned amount. The interest rate can increase on loans that are in default if such a clause is included in the contract.
Typical of fixed term loans, the definition of default is outlined in the contract. This is sometimes referred to as an ‘event of default’ clause and it provides the standard or threshold under which the lender is eligible to demand immediate repayment of the loan.
A prepayment allows for the borrower to pay off the loan ahead of the established term and the contract should stipulate whether or not a prepayment will trigger a penalty. Many consumer financing programs for retailers will offer arrangements that come with zero prepayment penalties.
This clause of the contract should also clearly define how the borrowed amount should be repaid. A repayment schedule will typically outline the parameters by which the borrower must abide during the arrangement.
This is retail consumer financing offered by the business itself. You are the lender, therefore you are responsible for conducting credit checks, verifying customer information, and collecting the payments as per the lending agreement you have established.
Needless to say, this puts a whole lot of responsibility on you and your employees as you are tasked with deciding on the credit terms you decide to offer, the ways in which you will be repaid, and tracking those payments when they come in. You are also responsible for chasing after overdue payments and safeguarding the sensitive credit information of your customers. This can all be expensive, extremely time-consuming, and take valuable time away from the operation of your business.
If you would prefer to run your business instead of becoming a lender, then you can hire a consumer financing company to manage all of these important tasks for you. A third-party provider is responsible for every aspect of the financing program, providing a useful and effective way for allowing customers to pay for your product or service over a series of low monthly payments instead of paying in full at the time of purchase.
Your business still receives the full purchase price upfront and your participation in the transaction is complete. The customer and the lending company are now bound together as the customer is expected to make monthly payments once the goods or services are received.
Our multi lender platform has been built upon trusted and reliable relationships with a network of third party lenders who are ready to offer merchants like you the financing options to reach more customers and grow your business.
These lenders can supply prime, near prime, or subprime credit options and we make it easy to engage multiple lenders in one application.
Fund My Contract is the fast, easy way to
finance your customers