Customized Consumer Financing Solutions

The moment a consumer purchases your goods is known as the “point-of-sale,” or POS. Any transaction is a point-of-sale buy. “Point” designates a specific place. Whereas the checkout area is referred to as the point of purchase, the point of sale is the actual transaction event.

The goal of a point-of-purchase strategy is to identify ways to persuade customers to spend more money before they reach the checkout or point of sale. Point-of-sale (POS) financing not only makes transactions possible but also incentivizes customers to make larger purchases.

POS financing is a type of closed-end credit arrangement. It lets the user make purchases now and pay for them later, much like a credit card. However, the line of credit expires as soon as the borrower repays the agreed-upon sum, in contrast to a credit card. For expensive purchases that customers might otherwise be unable to pay or would charge to a credit card, point-of-sale financing offers an alternative. Both you and your customer need to close a deal. They need your goods. Customers who don’t have the cash on hand can still buy your product with POS financing without worrying about incurring instant debt.

It integrates with the checkout procedure to function. In addition to accepting Visa, MasterCard, Digital Wallets, PayPal, and other payment methods at the register, retailers may also provide POS financing.

Both the store and the client can benefit from the transaction right away with some types of POS financing. The consumer will receive their merchandise, and you, the store, will get paid in full. The consumer and the lender work out the terms of payment for the merchandise. With POS financing, a large-ticket item can be paid for in installments over time by the client. This helps the consumer get what they need fast and allows you to close a transaction. A win-win situation!

In summary, POS finance may help you expand your company and achieve special outcomes. Creating a compelling point-of-sale (POS) strategy is essential to providing clients with a flawless experience and encouraging their repeat business. Your whole POS strategy should include POS finance for a number of reasons.

Increased conversion rates might result from it. With POS financing alternatives, customers who would not have been able to otherwise afford to buy from you may now do so. It increases the likelihood of higher-ticket item conversions, which boosts revenue flow and expands your clientele.
It provides improved customer service and convenience. It is impossible to exaggerate the significance of the client experience. How simple a transaction is to complete is one aspect of a satisfying customer experience. At checkout, POS financing is integrated to facilitate transactions.
It enables you to provide a creative payment method. Unquestionably, creative items draw in customers, and inventive payment methods should match. POS financing may improve your company’s reputation while assisting you in bringing in new business and keeping hold of current clients. It’s an effective marketing technique as well.
The numbers speak for themselves: 74% of credit users believe that installment plans are useful when making significant upfront purchases, and over 40% of point-of-sale purchases are made on credit.

The voice of the consumer is evident in their preference for purchasing power over large credit limits and credit card perks. They are looking for payment plans that won’t punish them or put them in debt right away. Giving customers access to POS financing restores their spending power, and providing this option will improve your company’s overall customer appeal.

An advantage over competitors may be gained by providing a flexible payment plan using Finturf’s POS financing, since customers are increasingly drawn to non-conventional payment methods.

It’s critical now more than ever to understand your customers better than anybody else and provide services that meet their demands, as the loan sector continues to soar. POS financing is a cutting-edge tactic that allows your firm to pursue business that you otherwise would not be able to. How to do it is as follows:

Increase your sales. Businesses who provided POS financing saw a 32% rise in sales, according to a 2018 Forrester Research research, and that percentage has only increased. POS financing made for more than 4% of all purchases in 2020.
Encourage more expenditure. Furthermore, “bill me later” programs encourage users to spend more money than they otherwise would. According to the same survey, POS financing raised transactions’ dollar amounts by an average of 75%.
Provide assistance for establishing credit. Customers’ credit may be enhanced via point-of-sale financing, which is especially concerning for younger borrowers trying to establish their credit. These customers are always searching for ways to increase their credit score. One more win-win situation!

The response is almost definitely yes! POS financing is advantageous to retailers in almost every sector, and in others, it’s virtually required. You’ll be in good company if you decide to use POS financing, as more and more merchants are realizing the benefits of this new-sounding but outdated payment option.

POS finance gives small firms the chance to expand. POS financing options offer a chance for big businesses like Walmart, which uses Affirm, to keep its clientele.

Another resounding yeah. Consumers have indicated that they see zero-interest POS financing more positively than standard lines of credit, and POS financing is perceived as a safer option than credit cards. Platforms that allow users to purchase now and pay later offer a clear, easy way for customers to arrange installment payments. For the customer, one of the best things about POS financing is that it’s predictable. Customers who choose a point-of-sale financing option know exactly how much they will owe, when they will owe it, and when they may anticipate paying off their debt.

MasterCard is one of the leading supporters of point-of-sale financing; it recently paid an unknown sum to purchase the POS financing platform Vyze. MasterCard took this action because it is aware that Millennials and Gen Z, who will account for 40% of the market in 2021, are using credit cards less often.

Customers may safely and openly make installment payments on a purchase without committing to a credit card using POS financing, giving them the best of both worlds.

All merchants should be aware of POS financing, but those that offer expensive goods and services should be especially concerned. For instance, funeral homes, hospitals, appliance stores, and heavy equipment dealers.

Large financial point purchases that don’t require financing are unaffordable for a lot of customers. They could also be hesitant to use regular credit lines since they have steep interest rates and harsh penalties. It may take some time to save up the funds required to make important, expensive purchases, which means customers are postponing purchases they would otherwise make and businesses lose out on sales.

POS financing isn’t limited to well-known stores like Walmart. The use of POS financing is growing, even for infrequent, little transactions. Point-of-sale finance providers are a valuable resource for small company owners. Advantages consist of:

– A rise in sales
– An increase in the mean order value
– Increased repeat business
– less internal credit inquiries
– Access to a vast network of several lenders Easy integration and customization

The time to start is right now. Since the market is still undeveloped, experts in the field predict that POS use will continue to rise.

In light of this, there’s never been a better moment to get going than now. We at Benjamin Financial are here to help you get back on the right track. To learn more about our offerings, contact us today.