6 Ways Offering Point-of-Sale Finance Can Boost Your Sales
Thursday January 12th, 2023
6 ways offering point-of-sale finance can boost your sales
If you’re a business owner scratching your head and wondering how to boost sales, then you should definitely consider offering point-of-sale finance to your customers. This innovative financial solution can offer a number of sale-boosting benefits and it’s something that can be quick and easy to set up.
So if this sounds interesting to you, be sure to read on, as in this guide we’ve explained all you need to know, including six examples of how these solutions can help you get more customers converting.
In addition, we’ve given the answers to popular queries like ‘what is point-of-sale finance?’ and given more details on how we can support your business if you want to roll out this financing option for your customers.
What is point-of-sale finance?
More and more businesses are turning to point-of-sale finance and according to research from Apex Insight, its use makes up over £4bn in retail sales alone in the UK. It’s also expected to continue to grow in the next few years by another £1bn as more firms adopt the solutions in a bid to entice more customers. So what exactly does it involve?
As the name suggests, ‘point-of-sale’ finance is where your business offers your customers a financing solution at the point where they purchase your product and/or service. Similar to a loan or credit card, this lending option also allows your customers to make their purchase and pay for it incrementally.
This can be something that’s offered both in your bricks and mortar locations and online via your business’s ecommerce website or platform.
Why you should offer point-of-sale finance to customers
Beyond the obvious advantage of increasing opportunities for sales, here are six other great reasons why you should offer point-of-sale finance to your customers:
Attract new customers
According to this article from Finextra, consumers want ‘experiences that are faster, simpler, and more seamless than ever before, especially with online shopping’. This is something you can achieve by giving them more ways to pay. In other words, with a wider choice of payment options, you can entice a wider pool of customers.
Reduced chance of basket abandonment
The same article also states how nearly three quarters of shoppers (both in house and online) will abandon a transaction if they’re not met with a good UX and choice of payment facilities.
So, by having seamless point-of-sale finance options in place from a reputable provider, it ensures a choice of payments is there and can help you have a quality UX at checkout. In turn, reducing the chance of customers leaving before they complete their purchases.
Increased average order value
Having finance solutions available can also lead to increased conversion rates on higher-value items or services. This is because customers will recognise that they have an opportunity to spread their costs, and ultimately it will make their purchases more affordable for them over the long term.
Better customer retention
If you’re able to offer your customers more variety and choice with their payments, it’s more than likely your business is then going to leave a positive impression on them – subsequently making it more likely they’ll return for further purchases.
Additionally, research has shown that these loyal customers are then more likely to recommend your company to friends, family, and colleagues. Another way to look at this is that you can essentially do wonders for your reputation through a higher level of service, rather than through investing large amounts in refining and promoting your brand’s image via other marketing channels.
Today’s customers expect flexibility
To build on that last point, general market analysis following the Covid-19 pandemic also highlights just how much today’s customers expect businesses to have flexibility with online payments – this flexibility being something point-of-sale finance provides.
This is said to stem from the shift towards ecommerce that came from the lockdowns, store closures and social distancing we faced at the height of the pandemic. During this time consumers quickly recognised the convenience and ease from online shopping and this is now something we’ve become accustomed to receiving.
Improved cash flow
From a commercial perspective, if your business can get more sales via point-of-sale finance it can make your cash flow much healthier and more regular, even if it’s in the form of smaller, incremental payments. Moreover, these smaller finance payments can be processed and in your accounts much quicker than larger ones.
How can you offer finance to customers?
So now you know the benefits of point-of-sale finance, it’s a smart move to consider your options regarding how you can offer this to your customers. The good news is that it can be relatively straightforward even if you’re new to finance, especially if you seek help from experts.
One of the first areas to think about is your financing options. So what interest rate do you want to have? This could take the form of scaled levels depending on the credit score of the customer, or it could even be 0%.
Next you need to select a reliable provider, as this will also help build trust in your consumers that what you’re offering them is legitimate and a solid payment choice. Ideally, you also want a provider who can be flexible and tailor what they offer to suit different consumer needs and circumstances – as we alluded to earlier. Again, this wider range of choice can help your customers feel more assured it’s the best option for them.
To make all this even easier, you can choose our solutions. We appreciate that all businesses and consumers are different and we can bring that dependable level of trust to your setup. What’s more, with just a few simple integrations we could have your new systems up and running both in-house and digitally in next to no time – which is particularly useful if you’re wondering how to boost online sales.
Book a consultation to find out more
If you’re interested in learning more about how our innovative solutions can assist your business with point-of-sale finance, don’t hesitate to get in touch. Our expert team will be happy to explain how we can support you and more about the benefits you can get with these financing options. So call us today or drop us an email.
We hope our article on 6 ways offering point-of-sale finance can boost your sales will help your business.