While working with a financing company might be an excellent idea to provide more payment options to your customers, you need to tread carefully.
You need to be assertive when choosing which company to go with because your endorsement of them comes with a level of responsibility and might affect your company’s reputation if your customers experience issues with your financing partner.
But how do you choose?
First, ask similar companies who have experience dealing with financing providers. You want to make sure the provider has ample experience providing financing to businesses like yours because they must understand the business models and risks associated with buying products that you offer.
Search the Internet
You then need to search online and look for reviews of financing providers as well as check their BBB or Better Business Bureau ratings. You should then consider consulting with specialists in your field just to ensure that you know what you are doing.
Once done, ask these questions
Once you have narrowed down your list of potential in-store financing providers, you now have to contact each one of them and ask the following:
- How long they’ve been in business
- The number of customers, employees, and partners they have
- Their top competitors and what makes them better than them
- What terms can they offer your customer
- What will happen if a customer of yours breaches or defaults on the financing arrangement
- The risks for your customers that might result in them violating the arrangement
- Other partners they worked with or are working with that’s similar to your business
Record the meeting
Do not forget to take down notes and then schedule a meeting with the at least three or four companies that you liked based on your evaluation.
Once you get the best in-store financing provider partner, you are surely going to experience an increase in your bottom line profitably and revenues. Aside from that, you will also see your brand value increase because your customers will know how important they are to your business.