How many of your customers admire your products and fill up their shopping carts... only to bow out when they realize they don't have enough money?
How many leads get a quote for your services, ask lots of questions, and then ultimately bow out due to the cost?
How many people would splurge at your business if given the chance?
A customer who has to wait until they have more money has time to reconsider their purchase. And countless people will never consider the purchase at all, believing it to be out of reach if they don't have cash. Consumer financing not only overcomes customers' objections but also draws new leads to your business. And if it's handled through your merchant services provider, you can customize your financing offers. Even customers who don't have credit cards may obtain affordable financing. This opens a lot more doors and shows that you care about your customers. Read on to learn all about customer financing and how to choose the best provider.
What is Customer Financing?
Perhaps a customer has sadly turned down a pitch or put back a product, saying "I can't afford that." Many retailers have witnessed this. You know the customer wants to buy the item, but their bank account balance is a bit low.
Or perhaps you provide professional services and you almost land a new client — until they hear your quote. Again, you sense that lack of funds is their primary problem.
You may have asked yourself, "Can I offer my customers a payment plan?" But such arrangements can be difficult to manage. You'll have to schedule payments, prorate the balance, and chase down the client every month. You may even need to contact collection agencies if they don't pay. Meanwhile, you're missing out on that revenue. With NPP Fund & Pay Customer Financing you can extend a small installment loan that the customer will pay back in pre-determined increments. Rather than sending your customer away to try and obtain financing, they get instant offers on their personal device from our financial partners. This cuts out the middleman, creating a better customer service experience. Plus, you still get the full purchase amount. It's win–win!
Why Provide Customer Financing?
In a perfect world, every customer would have the funds they need to buy the products and services they desire. Unfortunately, that's not the case. There are three main outcomes when a customer considers a high-ticket item:
They want the item enough that they pay the price.
Result: Everybody wins!
They want the item, but the high price raises objections. Eventually, they decide against the purchase.
Solution: Fund & Pay Customer Financing helps overcome their objection. Psychologically a customer may choose to avoid a risky purchase rather than satisfy their desire. But if they can buy now and pay-over-time in easy, affordable installments, it doesn't seem risky any longer. According to research, such customers are even willing to order more when they know they don't have to pay it all at once.
Result: With Fund & Pay Customer Financing everybody wins!
They want the item, but they know they don't have the cash or credit available to buy it.
Solution: Fund & Pay Customer Financing provides the opportunity to buy the item without using a credit card or putting up collateral for a loan. The best customer financing programs include lenders who work with subprime credit. With our program your customers can submit one application and receive instant offers from lenders covering all the credit spectrums. With Fund & Pay Customer Financing you can offer payment flexibility and convert more customers who otherwise may never have purchased from you.
Result: With Fund & Pay Customer Financing everybody wins!
In case you have lost count that’s:
Win…Win…Win!
Industries that Benefit From customer Financing
Patient & Veterinary Financing
NPP Fund & Pay Patient Financing works for a variety of practices.
It's no surprise that all matters of healthcare are quite expensive, even with insurance coverage. Many people are simply going without essential health services rather than face hefty bills. Medical clinics, private practices, cosmetic specialists, and even veterinarians can improve their patient outcomes by enabling them to get the treatment they need. Consumer financing can cover everything from long-term treatment plans to vision correction, from elective surgery to fertility treatments. And during the most challenging periods of a person's life, it can help pay for funerals, rehabilitation, physical therapy, and other essential services.
Home Repair and Improvement Financing
NPP Fund & Pay Home Improvement Financing, Home Services Financing, and Contractor Financing is the perfect solution because it’s accessible from the customer’s mobile device. Giving them the privacy they need to complete their financing.
Second only to medical emergencies, home repair is one of the top drains on consumers' savings. Broken pipes, a defunct HVAC system, or storm damage can be devastating — and prohibitively expensive. By offering consumer financing, home services companies can relieve their clients' stress on rainy days — perhaps literally! Also, homeowners who wish to make upgrades to their home, such as re-painting, expansions, new outdoor spaces, accessibility features, water filtration, solar power, etc. will appreciate a financing option. It’s also quicker and easier to get Fund & Pay financing than having to go refinance your home or take out a 2nd mortgage.
Automotive Repair and Body Work
NPP Fund & Pay Auto Repair Financing is perfect for any size shop. Whether you are just starting out or have been in the industry for decades you can offer more to your customers.
Many consumers only head to the auto shop when their car has a problem. And when they do, they may decline certain services due to the cost. Auto mechanics and body shops need regular clients to thrive. Ideally, their customers would come in for preventative maintenance, parts repair, and perhaps even upgrades! Consumer financing can be a great solution for auto shop customers in need of emergency repair, as well as those who want "the works" to ward off future breakdowns. Plus, anyone who wants to splurge on new rims, window tinting, body work, and other upgrades will appreciate a financing option.
Retail Financing
With NPP Fund & Pay Retail financing, you can upsell your customers to the very best you have to offer!
Any retailer that sells high-ticket items has lost sales to customers who were strapped for cash. So, businesses likes furniture stores, jewelers, sports outfitters, musical equipment retailers and more can capture more revenue by offering customer financing.
NPP Fund & Pay Jewelry Financing covers everything from the ring to the bling!
Professional Services Financing
Law firms, marketing agencies, HR consultants, and executive coaches all sell expert-level packages and services to clients. Their offerings are typically high-ticket with no immediate payoff, given the nature of their work. This makes it challenging to convince customers to pay the deposit or retainer fee. Flexible financing options can help overcome this objection.
Travel Financing
The number-one reason people say they don't travel as much as they’d like is lack of funds. If travel agents, resorts, cruise lines, and airlines can offer customer financing, they'll certainly sell more vacation packages. Plus, these financing options provide coverage or upgrades in case of an emergency — or if someone needs to dramatically rush across the country to win back their sweetheart.
How Can I Offer Financing To My Customers?
Customer financing sounds great, right? So why don't more small businesses offer it? Unfortunately, many programs take hefty commissions from each transaction. Merchants lose anywhere from 5.9 to 13.9% of a financed purchase, so they'd much rather pay basic credit card processing fees and hope all their potential customers have credit cards with limits available. Also, many of these programs only approve the small percentage of customers with high credit scores. Those people are not the only ones who need these programs!
Thankfully, there is a new alternative. NPP Fund & Pay Customer Financing is built on digital platform called SweetPay that liaises between customers and various financial institutions covering all the credit spectrums: from sub-prime (520+ FICO Scores) to super-prime (740+) and with financing from $1,000-100,000. The platform collects the consumer's information through one simple application that they complete on their mobile device and compiles instant financing offers based on their profile. This saves both customers and merchants the trouble of sifting through lenders. Plus, there is only one soft credit pull, not multiple hard checks that ding the customer's credit score. The customer accepts an offer and completes the digital loan immediately. They pay back over time directly with the lender while you, the merchant, enjoy the revenue influx, without having to pay transaction fees or juggle multiple payment processors and bill collectors.
In case you missed it, you pay $0.
How is this possible? Because we’ve been in the industry for over 30 years, we’ve established this program so that our commissions are paid for by the lenders… not by you.
This is the future of financing — one that relies on partnerships and accessibility rather than exclusion and trying to take advantage of struggling merchants.
Ready to Get Started?
With NPP Fund & Pay, we believe in providing our merchants with the best tools, empowering them to boost their sales and gain an edge over their competition. Reach out today to learn how you can offer financing to your customers and grow your revenue without paying high fees.