Offering customers financing options can be a very significant way of increasing your sales, because it provides them with a means to make purchases that they might otherwise have been unable to make. Even very large purchases can be within reach if a consumer is given options for financing the purchase over a period of time. When making consumer financing available to your customers, you’ll need to work with a lender, and that lender will categorize your customers into three main groupings: prime customers, sub-prime customers, and no-credit-check customers.
In this group are the consumers who have excellent credit, and who are therefore eligible for the lowest interest rates or no interest at all. This group generally represents a relatively small segment of the shopping public, because requirements include such strong credit history.
Consumers in this group have credit history which is at or below average, and therefore represents increased risk to the lender. Accordingly, higher interest rates are applied, and a little more credit-checking becomes necessary, for instance proof of current income and personal referrals. The vast majority of your business customers will fall into this category, because most will meet the financing criteria.
Almost all customers can be approved for financing in this category, since virtually everyone will qualify for the necessary criteria. Buyers with bad credit history or no credit history at all can be approved for financing, but all should expect to pay the highest interest rates allowable. If your company is setting up a no-credit-check financing program with a lender, it can be tailored to fit your customer base, so that approvals can be maximized, while minimizing risk to the lender.
Funding solutions through IRC Commercial Lending
Take your business to the next level with financing from IRC Commercial Lending. Contact us today with any questions you might have about our financing products that will help you stay competitive, and get a step ahead of the competition.