Consumer Financing: What’s the Benefit?

Mar 14, 2018

Consumer financing is also called an installment plan, flexible financing, or buy-now, pay-later plan. Are you interested in consumer financing and its benefits? Why and how to offer this type of financing? How can it help your customers? Just read this article and you’ll get to know.

What Is Consumer Financing?

Have you ever considered a consumer funding program? Why not? First of all, let’s see what this type of financing suggests. By the way, this type of funding is becoming a huge movement in the retail sector.

Customer financing aims at converting a browser into a buyer. It targets potential customers who are about to buy goods/services from your business because they’re discouraged by the upfront payment.

This type of consumer funding helps people with limited cash. As a result, you acquire more potential customers than ever before. Well, how does it work?

You, as a business owner, enter into a partnership with a consumer financing company. As soon as all your details are filled in, you can inform all potential customers/customers making a purchase that you offer financing options. If they choose to use these options, you make exactly the same amount of money on each sale right from the beginning.

Thanks to such financing, businesses, even smaller ones, online only merchants get an opportunity to enlarge their customer base. Also, they’re granted an opportunity to build their reputations and increase their profits.

Well, how to find the right provider for you? For this, you should do some research and pay attention to the following things:

  • As a small or mid-sized business owner, avoid long-term contracts and automatic renewals. Your business shouldn’t be imposed any penalties if the customer who accepts the financing doesn’t make payments in full.
  • The standard cut taken by financing providers from each financed sale shouldn’t be more than 5%.
  • Signing up and getting approved for financing shouldn’t be a headache. It should be quick and convenient.

Consumer Financing From EMB

The consumer lending environment existing these days is far away from being simple. Why? The thing is that there’re ever-increasing customer demands, and regulatory changes. In addition, the modern digital world goes on revolutionizing each and every field.

If you, as a business owner, has decided to offer consumer funding, be sure you’re going to obtain one of the most effective tools for increasing revenue. By the way, have you been thinking this type of financing is only available to big businesses? Happily, it’s available to both large and small businesses.

Thanks to the variety and availability of lending programs offered by alternative providers like, both small and large merchants can get the best deal for their businesses. EMB is voted the #1 high risk payment processor in the US and has an A+ rating with the BBB. Moreover, EMB carries an A rating with Card Payment Options. is focused on providing the best possible rates and terms for merchant services. Importantly, EMB talks to every single business owner so to get to know the nuances associated with their businesses. This is how EMB provides each merchant with the right merchant services he/she needs.

What Does Consumer Funding Offer?

Typically, this type of financing provides customers with three levels of funding. These are financing programs that enable customers to go for an option that guarantees the cost effectiveness and flexibility they need. Here they are:

  • Primary or “First Look” Programs

These approve customers with average credit and above. They typically feature “no interest” or “reduced interest promotions” to be appealing to credit worthy buyers.

  • Sub-Prime or “Second Look” Programs

These approve customers with below average credit. They’re associated with greater risks for the lender, so merchants usually pay higher costs.

  • Tertiary or “Third Look” Programs

These approve an extremely high number of applicants. They’re perfectly customizable and are based on client’s cash-flow needs, margins, and risk tolerance. Turning to EMB, you’ll be able to secure no-credit-check financing programs to offer your customers. This is a special type of lending program that features a no-credit-check requirement.

Consumer funding is beneficial for businesses of all sizes and industries. By offering financing to your customers, you can boost your sales, improve customer loyalty, and build repeat clientele. Choose the right provider and start growing your business.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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