Benefits Of Offering Point Of Sale Financing For Small Businesses

Benefits Of Offering Point Of Sale Financing For Small Businesses

As a small business owner, offering your customers easy access to Point-Of-Sale (POS) financing can turn your business into a powerful money-generating machine. Larger corporations and retail chains are no strangers to financing portals, often offering their own in-house lines of credit. However, for many small businesses, this can prove to be a capital intensive exercise that not only burdens you with the risk but could also put your customers out of pocket due to exorbitant APRs. In addition to these challenges, more and more consumers are moving away from traditional lines of credit and unsecured loans to convenient, personalized financing options.

Partnering with ChargeAfter is an affordable solution that offers seamless integration and more flexibility for your business and consumers. So, how will Point Of Sale financing from ChargeAfter benefit your business? Here is everything you need to know:

Increased Sales

By far the most attractive benefit of offering consumer financing is the limitless possibilities to increase sales. By enabling consumers to apply for loans on the spot at no extra cost with budget-friendly payment plans, it means your business closes the sale just as easily and quickly. Some customers don’t have the cash to pay for larger ticket items like furniture or appliances upfront. However, when a business allows the customer to purchase the product by making use of flexible buy now pay later solutions, they are more than likely going to purchase the product or service on offer. According to a study, companies who offered POS financing saw a 32% increase in sales!

Increased Average Order Value

With a track record of up to 85% approval rates and 0% APR, ChargeAfter’s financing solutions become an effective tool to upsell to your customers. By offering customers to break down their purchases into much smaller monthly payments, it persuades them to choose products for a higher value. For example, when a customer browses a handbag for a $100 budget but sees affordable shopping cart financing options advertised, they will be more inclined to purchase the handbag they really want for a much higher value.

More Return Customers

What drives a customer to complete a purchase? Affordability, transparency, and efficiency. Putting the buying power back into the consumer’s hands goes a long way to earning repeat customers. POS financing creates a pleasant customer experience online and in-store. They are able to apply for the loan on the spot without the hassle of lengthy processes or long waits at the banks. The approval is immediate. And to put the cherry on top, customers are given complete transparency as to what their payment responsibilities will be every month, without any hidden costs. Using a renowned POS financing partner taps into your customer’s needs, making it much easier for your brand to build lasting relationships with your market.

Less Admin With Credit Checks

As we mentioned before, there are a few downfalls to offering traditional in house credit like a store card. For smaller businesses, it can be a costly exercise to set up and it comes with a lot of unnecessary admin. This option requires you to do the paperwork for applications and also means that the responsibility of credit checks falls on your shoulders. You would first need to find out who is a reliable credit check bureau, look into how much risk is involved with offering credit, and determine how much credit you are able to offer the customer. POS financing eliminates these challenges altogether. Your customer is redirected to AfterCharge on check out, and the rest is up to us!

Direct Access To A Multi-Lender Network

ChargeAfter’s Omni Channel platform gives merchants direct access to a personalized network of multiple lenders through a single user checkout system. What this means is that your customers have a higher chance of being approved for a financing loan. Instead of using one prime lender, our multi-lender waterfall process gives customers personalized financing options in seconds. If the customer’s application is denied by a prime lender, they are automatically redirected to a near-prime lender for a second look. Should that application be denied, they are then redirected to sub-prime lenders (“lease to own”) for approval. Due to the various terms and financing options, this means your financing approval rates can increase by up to 85%!

Seamless Integration And Customization

ChargeAfter’s innovative shopping cart financing can be seamlessly integrated into platforms like Magento, WooCommerce, Shopify, and even custom platforms. For retail stores, POS checkout financing can be easily integrated with simple JavaScript or easy to connect extensions. In addition to these options, ChargeAfter’s platform can be customized to your own brand identity, which your customers will recognize and trust.

The full reporting features of ChargeAfter’s shopping cart financing platform gives merchants access to an easy to use dashboard where you can view, manage, refund, and upsell products in real-time at the simple click of a button. What’s more, is that as a merchant you get around the clock 24/7 support and assistance with all technical aspects of the platform.

With 85% approval rates, 0% APR, 45% increases in AOVs, and a tantalizing 30% increase in sales, ChargeAfter is the customer financing platform that can take your small business to new heights!