Why Should You Offer Financing?
- Boost Sales
Financing options help your customers to pay the total amount in small, well-divided segments over a period. So, customers are more likely to buy from you when you offer your products in easy financing options. Thus, it boosts sales. - Increase the Average Order Value of Your Product
Financing is a great option to increase the average value of your product. By introducing it, you can up-sell something. For example, if you sell electrical equipment, such as a refrigerator, you could explain to the customer that for some $10 per month, they could afford other equipment as well. - Improves Cash Flow
For small and medium businesses, maintaining the cash flow and the capital amount can get harder. With financing, you get the capital amount credited instantly. When someone’s loan gets approved, you get the purchase amount credited into your bank account. Thus, you get the money that helps you to maintain a smooth cash flow in your business. While we manage your customer’s regular payments, you will know that you will always get paid. - Attracts New Customers
Not everyone has the cash in hand for purchasing some high-value item. So, when you introduce a financing option to your business, you open your service to more customers. It becomes easy for them to opt for your products with small, regular payments. Thus, it attracts more customers and helps you increase your business. - Repeat Business
Vendor finance not only increases your sales or brings your new customers, but it also helps you retain that customer base. When your customers find your products affordable, they will do business with you again. It keeps you way ahead in the competition, provided your competitors might not offer such financing options. - Attractive Tax Advantage (Including Section 179 accelerated depreciation)
Section 179 of the IRS tax code allows businesses to deduct the FULL purchase price of qualifying new and used equipment and software placed into service during the tax year they were purchased or financed. Apart from this too, vendor financing has lots of different tax advantages that help small and medium businesses grow on a large scale.