The Types Of Lending Available To Buyers
You have some large ticket items that you would like to move out on a regular basis. However, due to their price tags, your customers may balk at them. There are consumer financing plans that can make payments feasible for your clients and help change their minds. Here are a few types of lending available to buyers.
Options Available For Shoppers With Poor Credit
Depending on the products that you sell, there could be programs for your clients who have issues with their credit. They will provide the cash for a large ticket item and then bill them in installments for several months. However, the programs that they offer typically have high-interest rates, which increases the amount that the client will be responsible for when the installment is due. It is an opportunity for the buyer to improve their score by using consumer financing to prove that they are responsible for their money. In the event that someone qualifies for this loan, be sure to provide them with all the documentation that explains what it entails.
Another Idea For Customers With Credit Issues
There is another option for your customers who struggle with credit. However, it does come at a cost to you. The client will have a manageable interest rate, but you will pay a higher fee to the lender if they accept it. They will also need to provide proof of their income, a financial statement, and possibly a co-signer to obtain it. It can also be a tool to improve their score since the bureau will track every payment they make on time. While it is a great way to help the individuals who shop with you and move your high-dollar items, you will have to remember the extra amount that will come out of your pocket to close the deal.
For Clients Who Have Great Credit
You will have customers who shop with you who have a great credit rating and the income to make the payments for your product. They will receive benefits for this such as a plan that eliminates the interest or a longer time to pay it off. It also helps your store with a cheaper fee that you have to reimburse the lender to get this program. This is the consumer financing that you will want to advertise heavily in your store. Contact the lender to see if they have signage that you can display that explains what they offer.
