- Impact on the consumers
Price is a big determinant whether a customer makes a purchase or not. When a lump sum is broken down into installments, then it becomes more palatable. The behavior can be leveraged when you show the monthly financing available alongside the purchase price to show the buyer that he could very well fit the item into his or her budget.
The interest that is charged is also something that many people will think about. There are different terms of payments regarding how often they will make charges. Other things considered are the use of credit cards, flat fees, and so on. It is important to deal with a provider who offers rates that are favorable.
One of the things that the people look out for is how easy it is to make an application. There are options where you have to fill out pages of paperwork and can take many days to complete. Some only require very little information and only some minutes to approve.
This kind of financing is aimed at increasing your sales and therefore the application should not be made complicated. If it takes too long, then most people will just give up and try to purchase somewhere else.
Most of the financing options also require the buyers to have smartphones where they can get authentication codes. Though it is a minor step, there is the assumption that everyone has a smartphone. It is therefore important to ensure that your buyers can use the option easily depending on the target group.
- Flexibility in branding and marketing
When you are planning to offer to finance your clients, it should fit very well on the website as well as an online store. Consider marketing flexibility as well as branding that is offered by the different companies.
You need a provider who offers flexibility that allows you to white label the option. This means that you can brand the option as if it were your own. When you change the message, then the buyers will feel confident taking it from you instead of a third party. This allows the finance option to fit with the brand and image.