Offering free access to credit at the point of sale (POS) can help companies of all sizes with business generation. Anyway, not all companies have the working capital available for offering in-house funding programs. Where can you obtain the right business funding to beat your competition? Just read this article to know more on the topic and POS financing.
POS Financing and Its Benefits
According to a Forrester Research study, companies that implemented an online point-of-sale financing option witnesses a 32% increase in sales. You can find POS financing in the form of credit cards, unsecured loans, and lines of credit. POS loans are becoming more and more popular because of several reasons, including affordable rates and developments in expedited underwriting methods.
The right application can turn POS financing is a win-win option both for businesses and customers. Point-of-salefinancing has to do with a merchant offering its customers funding to enable them to pay for products or services at the time of sale.
Typically,POS financing can be beneficial for businesses with high average order value. If the goods or services you offer are relatively expensive and could require credit for the average customer to buy them, POS financing could offer potential benefitsto you.
Point-of-sale financing is comprised of two subsections: online merchants and in-person financing. Customer financing can directly be integratedintocustomers’ existing websites. Suchpoint-of-sale financing can play the same important role as with showing a credit option at checkout to laying out a payment-per-month price on every high-ticket item that’s offered.
Beat Your Competition: POS Financing or Not
To beat your competition, you should have access to the necessary working capital from a reputable business funding provider. What’s the best choice for your business, POS financing or another type of business funding? With a reliable merchant services provider, which talks to you to know the specifics of your business, you can easily figure this out.
If you’ve chosen point-of-sale financing, providers can connect with your business through an existing checkout system or tablet. When it comes, to in-person financing, there’re providers thatallow customers to use their own smartphone to run a financing app.
Now, let’s see what benefits point-of-sale financing can offer to your business:
- Offering point-of-sale financinggrants your clients a greater buying power.
- Point-of-sale financing will help your clients have more time to pay, thus allowing them to afford higher-quality products and services. In turn, it’ll boost the overall sales and your average order value (AOV).
- Well-implemented POS financing program can better the purchasing experience and contribute to the development of a long-term relationship with customers.
- Provides a positive company image to customers.
- Can help improve your cash
The advantages of offering a simple and fast funding program to your existing and potential customers are quite vivid. Just consider all the specifics associated with your business and turn to a respectable business funding provider or alternative online lender to get the best for your company.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can help you beat your competition without any challenges. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.