How to Offer Financing to Customers

bizfluent article image

g-stockstudio/iStock/Getty Images

Financing programs allow customers to buy high-priced items and spread the payments out over a specified period of time. A well-run financing program can increase sales by making it easier for your customers to complete their purchase. Your company's sales and marketing staff must make the customers aware of their options and encourage them to choose a financing plan instead of paying cash or simply walking away without buying anything.

Understand Your Financing Terms

Take the time to study how each aspect of the financing program works and how it could benefit each particular customer. For example, no money down financing could benefit a customer without a lot of cash in the bank account, but might be useless for a more well-off customer who is looking to save on the overall purchase price. Develop a basic sales pitch that describes the general financing details, but focus on one or two key benefits best suited for the individual customer. Ask questions to get an idea of his needs and financial situation so you can modify your sales pitch.

Minimize the Disadvantages

Explain any applicable annual fees, interest charges or late fees, but try to steer the conversation back to the benefits of financing without being pushy or obnoxious. Of course, you must still be honest about all charges your customers may incur.