Purchase financing is not just a payment option but a growth driver for businesses, irrespective of their industry. Whether it’s a retail establishment selling high-value products or services such as kitchen renovations, furniture, bathroom remodels or flooring, customer hesitation often originates from financial constraints. Here’s where purchase financing shines, turning potentially lost sales into successful transactions.
By routinely offering various financing options, businesses emphasize their commitment to making their products or services accessible to everyone. Recent research found that 32 per cent of consumers are more likely to make larger purchases, if financing plans are available. This not only increases offer rates, but can also significantly enhance purchase conversion. Each payment method, be it available credit such as credit cards, purchase financing programs such as humm, or in-house financing, comes with its own pros and cons.
Understanding these insights can help businesses make informed decisions that align with their growth strategies and customer needs.
Understanding purchase financing: From in-store to online
The world is quickly adapting to the ever-evolving digital landscape. When we talk about purchase financing, it’s no different. The brick-and-mortar retail businesses now share the marketplace with their online counterparts, and both demand equally efficient financing options.
In physical retail settings, it’s all about immediacy. A customer walks in, selects a product, and expects a smooth, quick checkout process. Humm’s digital purchase financing solution works seamlessly for these instances, providing a straightforward, paperless process.
Conversely, for online retailers, customers may browse your offerings at their leisure, potentially over several sessions, before deciding to purchase. Here, humm’s digital financing options provide a similarly seamless experience, allowing customers to complete the application independently through an app or mobile device.
With nearly 25 per cent of consumers more likely to complete a purchase on mobile devices, offering a digital-friendly financing solution is vital. Humm’s omnichannel presence ensures your business is ready to meet customers wherever they choose to shop or seek services.
Positioning financing to your customers
Positioning financing to your customers is about opening doors to possibilities, rather than just selling a product or service. It’s about showing your customers that your business is a partner in their journey, eager to help them afford what they need or desire.
It is especially significant for businesses to discuss financing options with all customers, not just when they ask or appear unable to afford. By focusing on the monthly payments and structured repayment plans, the conversation is centered on the benefits and value of the product or service, rather than the total cost.
Purchase financing is a transformative tool in today’s competitive retail landscape, with substantial benefits for businesses and consumers.
By partnering with reliable providers such as humm, merchants can easily navigate financial complexities, focus on their core services and foster stronger customer relationships. Embrace flexible payment options and join the purchase financing revolution poised to redefine the future of retail.
Learn more about how humm can help grow your business.