Why Should You Offer Financing?
Increase Your Sales And Average Transaction Size
Financing increases a customer’s purchasing power, making large purchases more affordable. Studies have found that the average home service sales transaction size increases 21-25% for companies that offer consumer financing. In addition to making it easier to close a higher ticket, financing also makes it more likely to close a potential sale. Contractors offering financing close 27-30% more deals!
Be More Competitive
Offering consumer financing can give companies a competitive advantage, allowing smaller businesses to compete with larger, more established ones. You no longer have to lose customers to businesses that offer financing, nor do you have to lose a sale over poor credit or a lack of credit options. Offering consumer financing also gives you additional marketing power, allowing you to have an advantage over businesses that do not.
Attract New Customers
Your business can attract new customers by offering consumer financing plans. If a prospective customer is shopping around for a big purchase, they may be more likely to choose your company over a competitor that doesn’t provide financing options. It can also help you earn repeat business, as consumer credit programs often motivate customers to return for future purchases.
