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Customer financing refers to any type of buy-now-pay-later arrangement. Often, a customer will need to pay a part of the complete cost before the releasing of the goods/services. This type of financing is generally the B2C (Business-To-Consumer) arrangement rather than the B2B (Business-To-Business) arrangement. In terms of online financing, the merchant is typically supplied with buttons and banners which can be placed on their site for announcing that financing is now available.
Now, let’s check out the below-mentioned customer financing companies which you may try –
- PayPal – There are many well-known PayPal small business solutions, however, one that you may not be familiar with is PayPal Credit. It is considered the best platform to offer customer financing. Moreover, PayPal Credit is an amazing way for the online businesses, specifically those which already accept it as a payment form, for offering customer financing. It allows you to add the financing banner or button to the online checkout while the customer checks out with PayPal on the website. It will make the credit decision for the customer within seconds.
- ViaBill – This Company is another well-known customer financing solution for buyers to consider utilizing on the eligible sites. ViaBill is designed for splitting larger purchases into 4 equivalent monthly payments. In case you appropriately pay all of the 4 monthly payments, you will be paying no additional interest on the purchase. Also, customers can be confident in the very fact that its types of customer financing programs use secure and safe servers for protecting every piece of personal information.
- Flexxbuy – This seems to fall into a more conventional side of the customer lending business. It has a relation with more than 20 lenders in the backend & can instantly set the customer up with the right lender, as per the credit score of the customer. With this Company, the customer may get the loan of a maximum of $50,000. The site is not quite clear, however, the wording in several places recommends that the smaller loans may be approved quickly, however, the bigger ones can take at most 48 hours. In these sorts of customer financing companies, the merchant has to submit the formal application.
- Financeit – This platform provides customer financing for shopping to a maximum limit of $60,000. They do not charge transaction rates, & the basic program is free, as well. The customer might apply for the Financeit consumer financing from the Smart Phone in the store, or on the portal utilizing the Financeit digital tools. And, if approved, they can get funds as soon as the next day.
- Afterpay – This is a quite well-known choice in terms of customer financing due to their exceptional repute with retailers and shoppers. Wondering why it is one of the best consumer financing options to consider? It is because consumers can divide their bigger purchases into monthly separate payments without any additional interest. Late rates will apply to those customers only which fail to pay the monthly bill on time. Also, customers may be eligible for re-scheduling the monthly payments a few times yearly.
- LendPro – Its consumer financing platform blends with the small business site, so your consumers can check the financing alternatives from their own homes’ comfort. They work with the industries which usually sell costly items, like automotive, jewellery, and goods. Also, LendPro sells app kiosks which you can install in the store. In case the customer decides upon pursuing the payment plan, these types of customer financing options, allow them for evaluating multiple alternatives by their application procedure. They offer interest rates and payment plans for every level of payment amount and creditworthiness.
- Affirm – This customer financing option falls squarely within fintech type, & it has the derivation for proving it. Affirm was founded by Max Levchin, who was among the Paypal founders. Even now, it is still taking money from the venture capital companies, with the current funding raising a round of USD 300 million. Its site is geared more towards the customer than the merchant, and that is why there aren’t many details on if (or how) in case they charge a merchant for processing the customer’s loan.
Now that you know how to provide customer financing services to consumers, & a few of the top-notch alternatives to work with 3rd-party providers, it is up to you for deciding whether or not the financing model is correct for the business. For making this decision, there are some points to consider. Firstly, you will wish to think about whether or not the customers will take benefit of this service. In case you think the customers will wish to utilize this financing alternative & that the 3rd-party provider will qualify them for being able to do so, it might be worth providing customer financing.
