Having a business that is based on consumer demand can be a rough patch to work when it comes to small business finances. Retail & service businesses that provide the public with everything it needs can be incredibly rewarding, but the demand cycle can also make accounting difficult. Sometimes it is because your company depends on a few high demand holidays. Other times, it’s a matter of selling the kind of high-value items people just don’t purchase every day. Either way, consumer financing programs can help you bring in more business.

What Is a Consumer Finance Program?

If you have ever had a store card of your own, you’ve already participated in one of these programs from the customer side. It might seem like a big project to put that kind of infrastructure in place within a small business, but that is not so. You do not have to build it yourself, instead, you can call in a nationwide financing program to offer its credit plans to your customers. This allows you to essentially adopt a pre-existing system without having to invest your own money. You enjoy the increased sales and average sale size while letting your financing partner handle the credit line’s risks and rewards.

How Does Consumer Financing Increase Sales?

When customers know they have the resources to cover a larger than average purchase or an impulse buy, they are more likely to go through with it. Most of the time, sales lost due to this mental calculus are just written off because customers need money to do business, but the credit program allows them other options. As a result, they can shop when they need your goods or services, leaving payment until it suits their cash flow. In addition to that convenience making it easier for your established customers to shop more, it also draws in those who need financing to access your goods but don’t have other options for obtaining them.

Getting Started with Consumer Financing

If you have questions about how much you can offer customers or what the minimum credit scores for approval look like, the next step is to talk to a program representative. There are many different options out there, including tiered programs, premium offerings geared toward high dollar customers, and even last resort programs to help you reach as many people as possible. It’s just a question of which one suits your business best, and figuring that out starts when you have a conversation with program representatives about specific options.