merchant consumer financing – Consumer Finance

Merchant consumer financing to fuel your dream entrepreneurial venture

Every brooding or expanding business requires some sort of loan or credit for a wide range of reasons. It may be for the start-up capital, equipment, office, rental, and many such things. For start-ups or businesses that have either low credit scores or poor credit history, it would be very difficult to obtain a loan from a traditional bank. Also, the low credit score will shoot the interest rate exceptionally high, in case you are approved for a loan.

Lenders usually look more into just the credit score. Other factors that play a key role in loan sanctioning are: business or industry balance sheet, business license and permits, proof of collaterals, etc. In that case, merchant consumer financing seems to be a more feasible option. Some of the perks include less burden of an enormous upfront payment, fast approval, and less paper works.

Consumer financing empowers customers to make low monthly payments for a definite period for goods or services that would be otherwise difficult to pay upfront with cash or credit card. Client financing is solely consumer-centric, and several stores and businesses endeavor provides an exciting offer for the same.

For instance, a consumer needing medical equipment can finance their CPAP machine or portable Oxygen Concentrator today and make low monthly payments for 12 or 18 months. For a medical need, nothing more crucial than being able to obtain equipment quickly. The consumer benefits from the exemption of huge upfront expense and they’ll get peace of mind knowing they can pay the total expense in fixed amounts.

If you are looking for a business loan in Michigan to meet your urgent requirements, then you need to keep in mind the following steps to avail of the loan:

Business needs

You must assess how much money you need for your business. If you have a small business you might not apply for a large sum of money for business loan in Michigan. Understanding the optimum requirement will help you a lot at the time of repayment.

Finding a lender

You need to research which type of lender will suit you best according to your business needs. For conventional loans, you can always go to commercial banks. But their parameters are extremely strict. Non-bank lenders are another option that you may consider. They are more region-specific lenders that include banks and e-commerce sites that are interested in the economic development of those areas.

Documents to approve the loan

You may want the loan application package ready for merchant consumer financing. This includes the documents that are needed to be submitted to apply for a business loan. Generally, it includes a business plan, profit and loss statements, balance sheets, and cash flow statements. You may want to keep in mind that lenders may also check your social media pages while doing the background check. Once you have submitted the required documents, you may have to wait for the next 15-30 days for a response from the lender. You can check your e-mail on weekly basis for an update. Usually, the lender may require additional documents for granting the loan.

Opt for the professionals when it is about getting a loan because there’s no reliable option than going for the experts. Read the loan documents thoroughly before applying and pick a repayment process that is convenient for you.

How Consumer Financing Can Skyrocket Your Sales

consumer finance

According to a study, nearly 50% of consumers have sub-prime consumer scores. You might ask who these shoppers are. Well, these shoppers are those who cannot buy products easily of their choice because of their low credit scores. Also, they neither can apply for credit cards nor they are eligible to avail some of the most traditional financing options.

Although, on the other hand, Retailers can just look on helplessly. They can’t reach out to these shoppers because of their low creditworthiness themselves. Thus, no credit cards means loss of business worth hundreds of dollars every month.

Though, there are some innovative fintech companies who help out retailers as well as consumers. These consumer financing companies help businesses by customizing financing platforms for them. It recognizes that no two businesses are same that is why, every consumer financing scheme by them are different from the other. Companies like Zip loan are some of the best places to grab these services.

Who needs consumer finance?

Nowadays, credit funding and loans are some of the most common financial aids that a major portion of the population is in need of. Broadly speaking, there are 3 kinds of consumers who would need aid from financing services.

Prime consumers– This set comprises more than 90 million consumers. People under this category are major buyers like small or medium scale business owners.
Near Prime– 50% of these consumers don’t have 10-20% of revolving credit. There are more than 50 million consumers in this group. Thus, due to a slightly low creditworthiness, they also suffer due to inadequate funds.
Sub Prime– Lastly, there are more than 65 million consumers in this set who don’t or won’t apply for credit for fear of rejection. These people might or might not have the minimum credit score but are always on the lookout for credit funds.

As one can see, there is a substantial business opportunity here. More than 200 million consumers require consumer financing plans.

What are the plans offered under Consumer financing?

Not every shopper is able to pay with cash while buying products. If the average selling size of your products are $300 or more, then 90% of your window shoppers will never again land up in your store. But, with the help of affordable and flexible consumer finance plans, you can win back these Shoppers. Provide value and not price through these schemes. Following are some of the plans that are offered under Credit financing by fintech companies:

Loans on instalment
Lease finance
Monthly rental payments
Bancard
Private label card
Same as cash
Products covered

What are the items that come under these financing plans?

Every person has a different need for credit. Some are facing problems while purchasing automobile parts while others are in the need of household electronics. So, here are some of the many items that are available under consumer financing plans:

Consumer Appliances
Consumer Electronics
Exercise and Sports Equipment
Car Stereo and Alarms
Musical Instruments
Bicycles
Other products priced over $500

This is how consumer financing works. You can avail great financial aid by availing these services. So, if you too are looking to buy some expensive items, then do check out some financing plans and choose the company that offers them with the most suitable features for you.