Offer Consumer Financing to Improve Sales and Customer Loyalty

Stop letting your customers leave the store and make the sale now!

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As services go, offering financing options to consumers provides businesses with one of the most effective tools for increasing revenue. And thanks to the variety and availability of lending programs that exist to meet the needs of different consumers, businesses both large and small have access to financing suitable for most of their current and future customers. Local businesses that are competing with large-scale department stores can also benefit from consumer financing programs, which has been shown to improve acquisition, retention, increase foot traffic, build brand awareness, and generate customer loyalty – which can dramatically impact repeat business.

In most common scenarios, consumer financing provides your customers with three levels of funding: primary, sub-prime, and no-credit-check financing.

Primary Programs

Primary consumer finance programs are defined as financing options that are a consumer’s “first look.” These are the offers a customer has access to prior to being presented with secondary (or sub-prime) options. Primary offers include the most attractive loan terms, and have the additional benefit of decreased merchant fees, and lowered risk for the lender. Although primary programs are generally the best option for both the merchant and the customer, approvals are much more difficult, with providers typically approving only those individuals with good or excellent credit. As a result, a smaller, much less broad portion of the consumer base will have access to first look offers, and merchants will often require additional offers like sub-prime, and tertiary lending, in order to supplement sales through their consumer financing programs.

Sub-Prime Programs

Depending on the lending provider, sub-prime financing can also be a no-risk solution, with many non-recourse loans available to merchants. Since the majority of those customers are likely to fall into the approval criteria for sub-prime financing, these programs meet the needs of a much larger group of individuals. In some cases, this group can account for nearly 80% of a business’s respective consumer base.

While the approval for “second look” financing is less stringent, customers will have to take a few extra steps to fulfill the requirements of the lender, which can include providing supporting documentation, such as proof of income, proof of residence, and even personal referrals.

No-Credit-Check Programs

No-Credit-Check financing is a special type of lending program with no credit requirement; this program is intended to provide consumers with damaged or unestablished credit histories the opportunity to utilize consumer financing despite maintaining a low credit score. While there are some primary and second-look consumers that utilize this option to reduce inquiries on their credit report, these financing options are most effective for those consumers trying to establish or rebuild credit. While no-credit-check financing is more expensive than other programs, lenders often provide the merchant the ability to offer a 90-day same-as-cash option in order to mitigate, or offset, the additional cost to the consumer.

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Keeping it Simple

Once a business has matched the right type of lending program with their customer, the financing providers take over. Most lenders handle collections, billing and payments, and document signing on their own, leaving the business owner to operate without the overhead that’s required to maintain an in-house financing team, and free of the long-term challenges of billing the client, issuing payment reminders, and sending the account through a collections process if a customer’s account becomes delinquent.

With most of the heavy-lifting being done by the consumer financing providers, business owners can simply enjoy the benefits of offering financing options to their customers, while mitigating their own risk, and improving their revenue.

Award winning.

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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 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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