The holiday shopping season is upon us, and depending on the type of business you own, you may find that traffic is increasing (and will likely continue to do so until the big man in the sleigh touches down on roofs later this month).
With an increase in potential customers, what measures are you taking to maximize sales?
If you're offering higher ticket items, some customers often need time to consider their finances before making a final decision. This is where financing makes things a little easier for sales teams to quickly move potential customers from the inquiry stage to the purchase stage, removing hesitation and squashing cost barriers that may be holding them back.
And that isn't just speculation, either. "Buy now, pay later" options are becoming increasingly popular worldwide, especially among people between the ages of 22 and 44.
A 2018 Point of Sale Survey in the U.S. found that 76% of shoppers were more likely to buy larger items in stores if they had an easy way to pay for them (i.e., a simple payment plan). Also, 62% of consumers liked plans with clear payment terms and fixed monthly costs.
Also notable, 66% of consumers have no interest in getting new credit cards and (in general) feel they have too many already. This shows that people are looking for other ways to buy big-ticket items at a store without getting a new card, which sometimes takes a while to get, sometimes days, and has a margin of error for approval.
The numbers are clear: once trust is built, and a financing option is presented (with a straightforward way to pay it back), the chances of closing the deal increase dramatically. By how much? According to a recent RBC Capital report, the figure could range between 20% and 30%.
For most businesses, the easiest way to increase their customers' buying power is to work with a finance partner like LendCare. Working across various industries, from retail and auto to Powersports and health, LendCare—leveraging our online adjudication tool, FrontLine—allows businesses to get on-the-spot approvals in minutes, increasing sales effortlessly.
Best of all, merchants get paid out quickly, closing the transaction on their end. LendCare takes care of the loan administration from that point on, meaning that once a customer leaves a store, businesses can breathe easy knowing that they don't have to dive into mountains of paperwork or schedule awkward follow-up calls to chase after payments. Financing also reduces the business's credit card fees, leaving more profit for its owner(s).
Is your business leaving money on the table by not offering manageable payment options as part of your customer journey? Contact LendCare today to learn how partnering with one of Canada's most trusted non-prime lenders can help boost your sales.