So you know who’s currently buying your products—but do you know who isn’t buying, even though you’re selling what they need? Credit-challenged customers could back away at the last minute because they’re worried about their ability to finance a big-ticket equipment purchase. But you don’t have to lose these potential entrepreneurs and loyal customers because traditional lending doesn’t accommodate them! Here’s how you can reach buyers on the lower end of the credit spectrum.
One in Three Customers Has Subprime Credit
According to 2020 consumer data, 30.9% of American consumers have credit scores below 670, which designates their credit as subprime or poor. These people struggle to get approved for anything controlled by traditional lending processes: credit cards, personal loans, mortgages, auto loans, and so on.
Given that they’ve likely suffered multiple credit rejections, it’s no wonder that these customers often don’t even bother to apply for loans—they assume the money is out of reach and that it’s futile to shop for something they can’t afford. Or, if they do get the courage to apply for financing, they run the risk of hard credit pulls further damaging their scores.
Credit-Challenged Customers Need a Better Option
Clearly, traditional lending is failing one-third of the consumer market in the US, and the loss of what these people could be adding to the economy with the proper financial support is staggering. That’s why they need another way to build their credit and achieve their small business goals. Clicklease can help.
When your customer applies for equipment financing through Clicklease, they can do it in minutes from their phone or computer, without the tall stack of supporting documents that most brick-and-mortar banks require. There’s no hard credit pull, and an algorithm assesses the application—so approvals arrive quickly. Customers don’t have to endure weeks of anxiety while waiting for a decision. For added flexibility, applicants can choose between three monthly repayment amounts, picking the one that works best for their budget.
Even better: Clicklease supports customers across the credit spectrum, so while we can help you scoop up the 30% that need more help, we’re also here to offer financing to the other 70%. You don’t need to manage multiple solutions for different customers—we can tailor our point-of-sale equipment financing to fit any credit profile.
We Assume the Risk; You Support Their Dreams
As much as you might want to support credit-challenged customers, assuming the risk of betting on them can be daunting—especially if you’re running a small business of your own. Evaluating applicants, collecting payments, and managing delinquencies all require time and effort that could be better spent elsewhere. Worse, you might be tempted to offer deep discounts to accommodate customers, which only hurts your business in the long run.
There’s a better way: let Clicklease handle the financing. You’ll be fully funded for the purchase as soon as your customer completes their financing, and we process their monthly payments. You don’t need to offer discounts, build in margins, or pay fees with us. But you do get to keep the customer loyalty that comes with helping someone buy the equipment they need to build the business of their dreams. We’re willing to take a chance on them in partnership with you.