Many agencies haven't approached POS financing for a number of reasons. Let's go over the most common misconceptions.
Point-of-sale financing is only available for physical products
When most people think of POS financing, the first thing that usually comes to their minds is a car dealership. You go in to purchase a car, you decide which one you want and shake hands with the dealer. You are then moved into the financing representative's office who immediately identifies where you can get the money. You don't need to leave the office at all, the financing happens right away.
As a side effect, people have a tendency to believe that this only occurs for purchasing physical items. What inFund provides is an ability to use the same financing system for services. We make sure that your client can get a loan seamlessly at the point of purchase, much like at the car dealership. Your customers don't even need to deal with that slick guy casually killing their credit rating by running 18 cheques at once. inFund does it once, and we use a soft check, which means no harm to your clients credit health..
Financing require a percentage of my sales – I can't afford to reduce my margins
For some lending agencies this is true. However with inFund, while everything is branded as yours, the financial transaction is between your client and inFund. Any costs or fees are between the funding agency (inFund) and the customer. You've set your price, the client knows what they need to pay for it, and they get an unsecured loan, and the interest is directly between them and the lending agency. There is no cost to your agency whatsoever.
If my clients can't already get financing, they must be a poor risk
Most banks look at a person's credit history over a long period of time. They look at the long-term. If someone had some problem in the past, this reduces their ability to get a loan. This is understandable from the lender's point of view; they tend to be conservative.
However, inFund looks at your prospect's recent credit history. So while he or she may have had some trouble in the past, we can see when they are moving in the right direction.. inFund can say yes, where others say no.
Financing companies will kill my sales
Many lenders operate as third-parties. When a client wishes to make a purchase, they must to go to the bank and request a loan. This can take some time. You've referred your client to the bank, but the bank has absolutely no obligation or even need to send the prospect back to you (other than in some loose sense that you send them more prospects). In many cases yes, it can become an interruption in the sales process, and your great prospect can grow cold and lose interest, and possibly take their newly found money elsewhere.
However, with inFund's White Label solution, the clients remain on your site; everything is branded as yours. From the point of view of the client, you are the one providing them with the loan, but inFund handles everything and you assume no risk. The purchase is made first, and if the financing goes through, the income passes directly to you. There's no chance for the financing company to accidentally sour the sale or have your prospect to go to your competition.
Lenders only care about making a profit
First of all, this is essentially true, however we need to look at this differently. Everyone in business cares about making a profit. This is true of lending agencies as much as it is of anyone else. Basic principles of microeconomics tell us that each transaction must be taken from the point of view of the participant. While your goals may not perfectly align with the bank, which in turn may not perfectly align with the client.
We can, however, use this to our advantage. You have a goal, which is to sell your services. The client has a goal, which is to find a way to boost their profitability. The bank or lending agency has a goal, which is to issue loans, so that they can earn interest on these loans.
Each of these motives actually go together well. If the client can afford your services, then you get the business. If the funding agency can get your client to take out a loan, this is good for them as well. Without any one of these three, nothing moves forward, and only those with enough money in the first place can get anything done. So yes, they do care about making a profit, but the only way they can do this is if you believe that you can make a profit by helping the client make a profit, so that they can take the loan.
Dizzy yet? However this cycle is how it works. Access to financing is the key to generating sales that were previously not possible.
Providing financing options to your customers can be a great way of increasing your sales. Even if it only has a 5-10% increase on contracts, the benefit to your bottom line is significant.