What are the Benefits of Point of Sale Finance?

Point of sale finance is when the merchant offers their customers a financial solution coined as the point of purchase, to back them in buying a certain product or service. POS financing falls under the category of consumer finance and refers to open loop credit cards, closed loop store cards, and installments or loans.

POS loans have their mark in the market for a long time. However, POS lending has seen an expansion in recent times, due to technological advancements. now there are options available for immediate online and on mobile phones repayment which wasn't there earlier. These advance technologies have also made it easier for point-of-sale finance to be offered by all sectors of a retailer.

As a business owner, offering your customers easy access to Point of sale finance can improve the growth of your business. Larger corporations and retail chains have an immense attachment to financing portals, often offering an in-house line of credit. However, for many small businesses, the method is a little capital stringent. In addition, more consumers are moving away from traditional lines of credit and unsecured loans to more convenient, personalized financing options.

Advantages of point of sale finance

1. Increased Sales

The most attractive perk of offering consumer financing is the limitless possibilities to increase sales. By enabling consumers to apply for loans at no extra cost, means your business closes the sale just as easily and quickly. This ensures most consumers purchase the product or service on offer.

2. Increased Average Order Value

By offering customers to divide their purchases into small installments or monthly payments, it persuades them to choose products for a higher value.

3. More Return Customers

POS financing creates a pleasant customer experience. They can apply for the loan on the spot without the hassle, moreover, the approval is immediate. Also, customers are given complete transparency as to what their payment responsibilities will be every month. Hence, using a renowned POS financing partner taps into your customer's needs, making it much easier for your brand to build lasting relationships.