Defined as credit provided to an individual to purchase consumer goods and products, consumer credit is widely used by businesses around the world. Fortunately, utilizing this credit system can greatly benefit your own business. The following provides a brief look at some of these powerful advantages.
Numbers and Sales
Recent studies and surveys have shown that customers are more likely to purchase big-ticket items and holiday gifts if they are given consumer credit. When presented with the opportunity to pay for these items over the course of a few months, sales have been shown to skyrocket along with the number of items being sold.
Short Wait Time
An extra bonus of using consumer credit is that businesses receive 100 percent of the sales only a few days later. Because consumer credit is different than normal credit cards, businesses still receive the profit from the sale, even if it takes the customer three to six months to pay off their dues. This means that your business can continue to move forward while customers make small payments towards their purchases.
Offering consumer credit to your customers will also help build a line of trust, communication and opportunity between you and the people who buy your products. Customers will be more likely to return when they know they can be secure with their finances and purchases when your using your credit programs. Plus, they will probably spread the word to their friends and family that your business offers honest, simple and affordable credit options.
By establishing consumer credit at your business with a solid following of customers, you can begin to increase and change your inventory. If you were unsure about raising prices, changing stock or adding more expensive items to your furniture, housing goods or kitchen appliances store, consumer credit lines will allow you to be secure in those changes. When your customers know they can safely purchase items but not pay for them all at once, your business can greatly expand.
When offering consumer credit to your customers, it is important to remember that it benefits everyone involved. Some people may be afraid to add debt to their accounts, but when given the opportunity, most will accept your lines of consumer credit and the chance to invest in their home or business. Fortunately, these lines of credit also help your business by increasing revenue and inventory while keeping sales moving along as if your customer had paid in full.