How Can A Company Offer Retail Finance?
Retail finance presents small businesses an alternative to pay for their customers. Retail finance offers a business’ customers a more manageable alternative to pay for their goods so that they can pay later in monthly instalments. Considering the various benefits that retail financing has got to offer, here is an account of setting up retail financing facility for your company’s customers:
Getting the Provision of Retail Finance for Your Business
Your business, too, can make use of the customer retail financing facility in order to propel things into the next dimension of competition. Here are some of the considerations that your business will need to make before it is able to offer retail financing to its customers:
Consumer Credit Licence
Since March 2015, the Financial Conduct Authority (FCA) has reduced the need for a Consumer Credit Licence to only certain kinds of business policies. For instance, if your business offers interest-free loans for a maximum period of twelve months in a maximum number of twelve instalments, then you can be certain that your business will not need a Consumer Credit Licence for offering finance to your customers.
If your business doesn’t fall under this category, however, then you will need to apply to the FCA for a Consumer Credit Licence. The FCA typically takes around six months for the approval of an application, so it is recommended for you to be prepared in advance in case the need for finance is dire. The cost of the licence will depend, of course, upon the activities that you will be carrying out and the size of the business.
Retail Finance Companies
Once you have got the issue of the Consumer Credit Licence settled, you will have to find a retail finance company that can offer a package for your small company. There are a number of companies that can be approached in this regard, including Hitachi Capital, Omni Capital and V12 Retail Finance. Regardless of the company that you approach, the retail finance providers will, generally, ask for the latest statement of accounts for your company. On top of that, you will also need to provide the list of offerings that your customers will be purchasing from your business and your company’s policies on returns and complaints. Be advised, however, that there is a small setting up fee that will need to be paid and a small monthly maintenance fee as well. Your business will, typically, be also provided with a dedicated account manager so that any difficulties that might arise can be taken care of at the earliest.
Benefits of Offering Retail Finance to Customers
When you speak of retail finance, there are a number of benefits that come with it, not only to your customers but to your business as well. Here are some of the manners in which retail finance has got the potential of benefitting your company:
One of the major advantages that come with customer retail finance rests in how the customers are empowered. With customer retail financing, customers no longer have got to make tough decisions regarding the amount of the payment and the manner in which it is to be made. Retail financing will give your customers more options, when it comes to making their choice of products and services, considering how they won’t have to worry about supporting their decisions all of the time.
As mentioned, retail customer financing not only benefits the customers but it benefits the businesses as well. How? Well, think about it; customer retail financing gives your business the cutting edge needed to get on top of your competitors. With the provision of customer retail financing, the probability of the customers choosing your business over your competitors’ will surge dramatically. This, ultimately, means that the revenues of your business will surge also. It is all interconnected, if you think about it!
When you consider all of the benefits that come with offering finance to customers, it should come as a surprise that businesses are not making use of this feature as they should be. From benefits to customers to benefits to business—it appears as if only the sky is the limit when it comes to all that customer financing has got to offer.