3 Industries That Benefit from Providing Independent Financing

Business Accounting
June 25, 2019
66 / 100

As a business owner, there is no question that you are interested in bringing in new loyal customers. Of course, there are a number of factors that can make this challenging. Economic factors, job situations, and other financial concerns make it difficult for many individuals to be able to purchase expensive items. However, if you are encountering roadblocks in trying to meet your quota, one of the best things you can do for your business is to offer financing. Here are some industries that especially benefit from doing independent financing.

Auto

Auto dealerships have been offering independent financing for many years now. There are many individuals who go with this option, simply because it can help them avoid going through a credit check. Of course, this also offers advantages to you because it will attract more potential customers to your dealership.

Usually, the process will consist of a customer engaging in a written agreement with you to purchase a car and then you proceed to sell the loan to an independent financial institution. Normally, you would tack on one percent to the interest rate that is charged in order to account for your time servicing the loan. Obviously, if the borrower defaults on the loan, you will have to arrange for repossession efforts. 

Mechanics and auto repair shops may also want to consider providing financing options. From the cost of the parts to the cost of labor, major car repair can be a significant unexpected expense for car owners. By allowing for flexible financing options, you will attract more customers to your business.

Contractors

Anyone considering paying for a remodeling job will soon realize that it does cost a pretty penny. This is one of the reasons why running a construction firm can be a challenge. However, you can turn simple browsers into purchasers by advertising your willingness to finance. Does your website have a checkout feature? If so, you can go ahead and offer that next to the other credit card options.

It’s a great option because it can increase the spending power of your customer. Providing customers with financing options opens doors for those customers who might otherwise be unable to afford services. Of course, if you’re hesitant to go this route because of concern over a customer defaulting, you should probably talk to an expert before offering this feature. 

Jewelers

Jewelry, such as an engagement ring or wedding ring, can definitely be expensive. However, you yet again can get more customers if you offer financing. Either way, the best method for you to attain more customers would be to advertise the financing option. If someone is considering getting married or purchasing jewelry for their significant other, you should actively market your financing options, and then watch your business soar! 

As you can see, there are a number of different industries that offer financing options. If your industry would support it, it might make good business sense for you to do it!

Categories

More Posts:

Product Mistakes You Might Be Making at Your Business

Running a business isn’t easy, and making product-related mistakes can cost your company time and money. From creating products without doing market research to holding excess inventory or failing to file patents, there are numerous pitfalls that you need to be aware...

A Five-Step Guide to Starting a Logistics Company

If you've been considering launching a transportation and logistics company, now is the moment. The transportation and storage sector is very important and profitable. Statistics show that by 2027, the global logistics market would have grown from its 2017 valuation...

How to Reduce Your Tax Burden When Operating a Business

As a business owner, you already have many financial responsibilities. Adding on the burden of taxes can be overwhelming. To reduce any stress, you need to find ways to reduce what you’re spending on taxes.  Start a Retirement Plan  Having a retirement plan in place...

​​How to Prevent Lawsuits From Ruining Your Company

No one wants to deal with the hassle and expense of a lawsuit. Unfortunately, lawsuits can happen to any business, no matter how big or small. The best way to protect your company is to take preventative measures to make sure that you are doing everything possible to...

10 Strategies an Ecommerce Business Needs to Follow to Increase their Customer Base

Online retailers need to drive traffic to their websites to boost sales. It is important to choose the right marketing strategies to drive traffic since not every strategy will work for every business. This article provides an overview of efficient marketing...

Why Digital Menu Boards Are A Game Changer For Restaurants

There are numerous benefits of using digital menu boards in restaurants. The best drive-thru menu boards can be controlled remotely to make updating fast and easy. Convenience is the main focus of drive-thrus. Customers don't need to leave their automobiles to place...

How to Avoid Manufacturing Woes at Your Business

If your business relies on manufactured goods, then you know that there are a lot of potential problems that can occur during the production process. From defective products to missed deadlines, manufacturing woes can cause big headaches for your business.  Here are...

5 Strategies to Build Team Spirit in Your Business

The manner in which we connect and communicate with our staff members can have a considerable influence on their levels of motivation as well as their output. In this article, we explore a variety of psychological and motivational approaches that can inspire teams and...

What Your Business Needs to Make Remote Work Function Well

In the post-pandemic world, the necessity of remote work has become clear to more and more companies. It carries with it unique advantages as well as unique challenges for both employer and employee. Here’s what you need for it to work smoothly. Regular Communication...

How to Attract Executives to Your Company

If you’re trying to quickly expand your company, one of the most difficult steps will be finding experienced and talented executives. You’re going to need to work fast if you want to find the right people. Here are some of your primary tools for attracting the best...

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Annie Anderson – Business Strategist & WordPress Creator

Annie Anderson – Business Strategist & WordPress Creator

Annie Anderson is the owner and digital creator at Midnight Rebel Digital Co. With over 25 years experience in design and development and more than 15 years experience with WordPress, Annie is a great person to have in your corner when it comes to websites, tech, and systems.

How Startups Can Ensure Health and Safety at the Workplace

How Startups Can Ensure Health and Safety at the Workplace

Everyone, including the owners, management, and staff, is responsible for ensuring workplace safety. All parties must take the proper steps so that no one is harmed while working. If you are looking for ways to keep your workplace safe, here are ten tips to help you out.

Product Mistakes You Might Be Making at Your Business

Product Mistakes You Might Be Making at Your Business

Running a business isn’t easy, and making product-related mistakes can cost your company time and money. From creating products without doing market research to holding excess inventory or failing to file patents, there are numerous pitfalls that you need to be aware...

Occupational Hazards That Come With an Office Job

Occupational Hazards That Come With an Office Job

Working in an office can be a great way to make a living, but it also comes with certain risks. Sitting at a desk for long hours and staring at screens can lead to physical ailments that not only cause discomfort but could eventually lead to more serious health...

How to Make Your Social Media Campaigns More Relevant

How to Make Your Social Media Campaigns More Relevant

Social media is a powerful tool for businesses of all sizes. It allows you to connect with customers and followers in a way that was never possible before. However, it's important to make sure your social media campaigns are relevant to your target audience. Here are...

Work Hazards Common Among Office Workers

Work Hazards Common Among Office Workers

Working in an office environment may seem like a safe job, but there are still a variety of hazards that can put employees at risk. Taking the necessary steps to prevent these risks and protect oneself from potential harm is essential for any office worker. Let's...