In this tough economic climate, a retailer can gain competitive advantage as well as significant increase to turnover by offering customers help with obtaining funding to purchase products.
We recently worked with a client that was both a manufacturer and reseller of Blinds for the home.
As a “nice to have” product our clients biggest challenge was persuading their customer to commit to a fairly significant outlay in one lump sum.
They needed to be able to offer their customers an incentive to buy the blinds, and we at the Business Bureau were able to provide that retail finance solution.
Within our network of commercial finance lenders, we found a debt collections company offering a retail finance facility featuring:
• 100% acceptance rate
• A fast and simple application process, and;
The be able to offer their customers the ability to pay for their purchases over a 12 month period, at no additional cost.
The customer would contract with the retail finance provider, to repay the balance over a 12 month period, and our customer would receive theses payments each month directly from the finance company.
Whilst our customer does not receive all of the sales value in a single payment, they have got a new client, and the money they are owed will be paid to them over the coming 12 months.
Our client understood that this retail finance facility would not work for all his sales, but in particular it would work where he was selling blinds that he had “bought in” rather than manufactured, as the margins on these were much higher and their would be no additional cost to incur.
The business has seen a significant growth in client numbers since it started using this facility, and now receives a regular monthly payment from the finance company on clients that have taken up the facility.
Interest free/buy now pay later facilities benefit any retail business selling high value items where customers need added encouragement to spread the cost.
For more information about business financing options for retailers, please do get in touch.