What is Consumer Finance
Whether you are a small business looking to offer financing to your customers, or you are looking to make a large purchase, you might have been told about consumer finance as an option. Learn what consumer finance is below and how it can help you with large purchases, or help your customers afford their purchases.
Consumer Financing Defined
So what is consumer finance anyway? Consumer financing is when a business offers financing to their customers with help from a professional finance company. This allows the consumer to pay for a good or service they couldn’t pay for up front in cash or credit card.
Consumer finance is helpful for both businesses and consumers. If you are a customer looking to make a significant purchase, one of the options you have to help you finance this purchase is a consumer finance company. There are many reasons why businesses of all sizes turn to a consumer finance company. Businesses of all sizes benefit greatly from having an outside company manage payments and collections. This gives a business more time to focus on selling and providing excellent customer service.
Consumer Finance Benefits for Businesses
Consumer finance is designed to ultimately help both businesses and consumers. When a business decides to offer consumer finance through a consumer financial services company, they are opening up the opportunity for more potential business. When a small business offers consumer financing to their customers, consumers can make purchases even if they don’t have the cash or credit card availability up front to pay for the entire purchase.
For example, one of the types of businesses we help offer consumer financing for is for funeral homes. Most of the time, families aren’t prepared for the overwhelming cost of a funeral, which is why in many cases funeral homes offer funeral service financing with the help of a consumer finance company. This helps the funeral home offer needed financing to grieving families and gives families the opportunity to obtain the full desired funeral service for their loved one.
Benefits for Consumers
While businesses offering consumer financing will appreciate the ability to help customers pay for their product or service, consumers will appreciate being able to make smaller fixed monthly payments with a set end date.
Going back to the example of financing for a funeral, as we mentioned earlier this isn’t a cost that is always prepared for. During a difficult loss, nothing is more overwhelming than not being able to afford a funeral service.
Consumers in this scenario will benefit from not having a huge upfront expense and can pay this amount off in fixed monthly payments. There are other industries where customers benefit from having the option to pay regular small portions of the total cost. Some of these industries where consumer financing is common include medical device financing, dental financing, pets, in-home direct sales, and more!
Best Features of Consumer Finance
Consumer financing is a great option to have when you are a small or large business selling products or services.
Some of the best features of consumer financing include:
- The ability to offer an additional payment method to your customers for your goods or services.
- Experience of a consumer financing company to handle monthly payments.
- Fast approval for applicants, so buyers can make a speedy purchase.
- Easy auto-pay service when you use a consumer finance company such as UCFS.
Let consumer finance be a benefit for your customers, or help you afford that big purchase.