Customer or consumer financing is when big and small business owners let their customers purchase items through a buy now, pay later payment plan. Their customer uses the product right away, but they have to make payments over time—usually with interest or fees.
While some businesses offer in-house financing, this leads to more work on their part. For instance, they’d have to review each financing application, manage payment agreements, and collect payments themselves. To save your company time and effort, you could opt for a third-party financing provider instead.
Let’s look at the perks of financing and why Clicklease offers the best customer financing program for small businesses today.
Why Offer Financing Options to Customers in the First Place?
Offering financing options opens the door to more customers who couldn’t afford your products if they had to pay upfront. As a result, you’ll expand your customer base and boost profits.
It’s also a win-win situation for companies who sell to other business owners. By giving them the means to buy what they need, you can make money while helping these businesses get started or improve their current products or services.
Types of Customer Financing
Here’s a brief rundown of the two common financing options customers have.
With a loan, your customer makes a down payment and pays the remaining balance in installments. These are usually done monthly over a few years, depending on the agreement. Customers will also get charged with interest, which they’ll pay along with the scheduled payments.
Customers who can afford to make down payments may find it more convenient to apply for a loan. This is because it lets them own the product right after purchasing.
The financing provider buys the product with leases while the customer pays to use it over a set time—much like renting something long-term. Lease payment agreements might be more flexible than loans, and the financier may agree to monthly, quarterly, or even annual payments.
Since leases don’t typically require down payments, this can attract customers who can’t afford them and are more concerned with using the product than actually owning it. However, some providers offer lease-to-own payment plans, wherein customers can own the product after paying the lease balance.
For Small Equipment Financing: Clicklease
Here are three key benefits of Clicklease’s customer financing program that might make us the right choice for your business:
1. Easy to Use
With Clicklease's online credit application system, you can create a custom link on your business website that your customers can click on to complete the credit application process. They can complete the application in as little as 3 minutes using the link, text, or email. Your customers may also view the progress of their applications at any time, preventing the need for you to handle follow-up inquiries about their applications. You and your customers benefit from the streamlined credit application procedure, which saves both parties time.
2. Customized Service
At Clicklease, we work with your customers to customize finance options to match their specific needs. If they’re a small business, we have options that allow them to finance equipment worth up to $20,000, with payment rates that are manageable for most.
Clicklease offers the best customer financing program for equipment like power tools and small-batch production machines. Signing up for our lease-to-own payment plans is completely free of charge.
Many equipment lenders will turn away new enterprises because they cannot afford to acquire equipment outright, whereas Clicklease accepts them regardless of their credit score or date of incorporation. That means that nearly all of your customers will have access to the equipment they need. As a result, your company's reputation and competitiveness are enhanced.