Have you noticed that when you watch online or television commercials or listen to ads on the radio, you are often offered credit options along with offers to purchase goods and services? Many businesses offer consumer credit to their customers, but there are very good reasons why it is so effective as both a financing tool and as a marketing strategy.
Consumer Credit Made Simple
Consumer credit functions much like credit cards do. It provides customers with a line of credit, which they pay off over time. Instead of pulling out their credit cards during the checkout process, customers simply select this alternative credit option.
When a customer uses the online credit option for the first time, the lender makes a decision after asking a few approval questions. The transaction is processed and the sale is concluded if approved. Within a few days, the retailer typically receives the entire sale proceeds. At this point, the consumer is directly involved with the financial agent, not the merchant, in the fulfillment of the credit owed.
Additional Benefits
When businesses offer consumer credit, their customers are able to purchase the products they want instead of settling. For businesses, offering consumer credit allows them to get a stronger foothold in a competitive marketplace while also growing their customer base. Customers tend to make more purchases from a business that offers consumer credit compared to those that do not. Additionally, consumer credit offers more flexibility to customers, while ensuring businesses have a constant cash flow. When combines with promotional and seasonal sales, consumer credit can be a powerful revenue tool for businesses.
Learn More About Consumer Credit
If you are looking for ways to drive sales and increase revenue for your business, contact the team at Speed of Light Funding. We offer a wide range of solutions for businesses across every industry.