Are you tired of losing sales because of a lack of financing options? In today's diverse and fluctuating market, businesses can't afford to lose out on customers due to limited payment solutions. Here’s how you can build the perfect lender lineup to ensure the maximum amount of approvals and elevate the revenue in your retail business.
The Journey to Financing
When I first started my business, financing was a new and interesting challenge. By understanding and introducing more financing options, I was able to double my revenue and take my sales to the next level. However, my lack of preparedness for market shifts, like the 2008 economic crash, taught me the importance of diversification.
Five-Lender Strategy
Prime Option: Targets customers with excellent credit scores. Offers revolving or installment loans with low-interest rates. Near Prime: Focuses on customers with good, but not excellent, credit. Providing similar but slightly less generous options. Subprime Options: Targets customers looking to rebuild their credit. Offers solutions such as installment or lease-to-own options. In-store Finance Program: A backup for those who don't get approved elsewhere.
Why You Need a Diverse Lineup
Diversity in your financing lender lineup ensures you can serve a broad range of customers, from those rebuilding credit to those who are financially stable but prefer to spread payments.
Technology Aids
Consider integrating technology platforms that can streamline the approval process and provide pre-credit checks. Your finance department is the backbone of your retail business. Empower them with a multifaceted lender lineup, and watch your business transform and your customer satisfaction soar.
Action List for the Reader
- Assess Current Financing Options: Evaluate your current lineup and see where you can maybe fill in gaps to better serve your customer base.
- Research Lenders: Be active in the search for lenders who can help you bridge the gap to different credit profiles.
- Contact Lenders: Reach out to potential lenders you think will be a good fit and outlines ways you can work together in your business.
- Diversify Your Portfolio: It is ideal to have at least 5 types of lenders to your lineup to effectively cover your overall financing program.
- Train Your Staff: Having a fully trained staff is imperative to maintaining a healthy financing portfolio; they need to know the different options inside and out to best help customers make buying decisions.
- Integrate Technology: Technology platforms like FormPiper can make the financing department of your business run smoother and more efficiently, creating a better experience for your customers and more sales in the long term.