How is Point of Sale Financing Beneficial?

Point of Sale financing essentially refers to consumers paying a certain percentage of the total amount of the purchase they make over a period of time until the whole amount is repaid. This method of buying now and paying later in a manner has been used quite extensively in sales.

There are many benefits that come from offering points of sales financing to budding businesses. As a small business owner providing the option of paying for the product in instalments could prove to be extremely good in boosting your sales. This is because when people know that they do not have to pay a large sum of money upfront but can instead do so in instalments over a period of time , they tend to be more interested in buying products. 

Benefits

A study even saw a 32% increase in sales while using point of sale financing. The method of repayment is transparent as all the terms and conditions of the repayment structure are laid out on a contract which is agreed upon by both parties. This goes on to increase the efficiency of the process. Having a proper repayment structure in play could help give customers a clear cut plan of how they need to pay and how much they would need to pay. Since it’s your own business , you can decide the conditions of repayment. Including customizability would help as then the customer feels as though they have the liberty to be able to negotiate some changes incase the agreed upon instalment rate somehow does not go well with their financial situation. One can also see how this whole process would help the customer in establishing a credit history which would be beneficial to them in the future when they need to have credit proof from the past in order to take a loan on something. Point of sale financing can be beneficial in various ways and it is up to the customer and the store owner to decide what is best suited for them.