Customer financing is something that can help those who are wavering on a purchase because of the price to buy from your business and pay off the cost of services/goods in installments in the future. You can offer customer financing either through your business itself or via a third-party financing partner. However, there is only one way you can earn commissions on consumer financing.
Consumer financing options
As a small business, you can either offer in-house financing or partner with a third-party platform, like Enhancify. In-house financing is the most complicated and risky option - you will have to do everything yourself, from making sure you follow state and federal usury to running credit checks and managing payment collection. This option assumes no commission earning.
To avoid the headaches involved with the in-house financing, look for a company that will do everything for you. There are companies specifically set up to do customer financing. These companies usually charge you a small fee for each financed customer, but there are a few that don't. Also, a third-party platform can charge you a fixed fee for using their services, which may include an online dashboard to track your progress, some educational materials or training, support and reporting. And a rare platform will offer you commissions for each customer that gets approved for financing through them.
It's no longer expensive to offer customer financing
Indeed, offering consumer financing used to be expensive just a while ago. However, competition between third-party platforms and new technology have made it easy to sign up and start offering financing. Of course, there still are companies that charge rather high dealer fees, but you don't have to work with them if their model does not work for you. Look for platforms that charge no dealer fees. They may charge some fixed fees on a monthly or yearly basis, but such fees are predictable and you can easily build them in your expenses.
There's even better option - platforms that pay commissions. Such platforms pay you for every financed customer you send to them. And if the third-party charges you a program fee for using their services, commissions can help you offset that fee. Isn't that the deal you were looking for?
How do you make money by offering customer financing
Customer financing can help you increase sales. When your customer does not have enough cash to pay for your services or product right away, a financing option with a comfortable repayment plan can help them decide to stay with your business. As a result, you will get a sale and additional revenue for your business.
Additional sales are not the only benefit. Customer financing gives you the opportunity to upsell. Your customer may want to add more services, increase their project size, or go for a more expensive option if they know they will be able to finance those additions.
You can diversify your clientele by offering different ways to pay for your services. With customer financing, those who had previously been unable to afford to buy from you, can potentially become your customers.
You might also be able to add a new (more expensive, even) service or product to your line of inventory.
All those increases in sales lead to additional revenue. And if a third or half of your sales are made through a third-party platform that pays you a small commission for every financed deal, like Enhancify, your revenue will be even higher.
Earn a commission with every financed customer
You can earn extra money by simply offering financing through a third-party platform that pays a small commission for every financed customer. Not many platforms do that, and Enhancify is one of those rare birds.
The process is pretty easy. You send customers to a third-party platform through your links. Your customers get low rates, high loan amounts and quick funding. Once the loan is funded, you earn a commission. The more customers you refer, the more commissions you earn. With Enhancify, the commission for a funded loan ranges from $50 to $650 and is not capped. That means you have all the potential to offset the cost of the service with earned commissions.