3 Industries That Benefit from Providing Independent Financing
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 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.
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.
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!