The Growth Blog

Broaden your target market with this financial power up

Jan 22, 2019 2:29:34 PM / by inFund

In the brief history of online business, we have seen a revolution in the way that businesses and consumers interact. More and more, people are using online marketplaces to purchase items. The online B2C model is held up as one of the great business successes. Anyone who has a product to sell has the ability to set up a storefront and make it available to the public. Consumers love it too. Who doesn't love being able to buy what we want, from the comfort of our homes, and make a purchase without having to find the car keys?

Of course, if we don't have the money, even if we want something, we don't purchase it. However, if we have funding options at your disposal, it makes it a lot easier to buy that new phone. The numbers back this up: according to a Close Brothers customer survey, if people have access to financing, they are far more likely to make a purchase:

  • 59% of customers would only purchase if finance was available.
  • 53% of customers who do purchase say they would spend less if they don't have access to financing options.
  • For those that were going to buy a product anyway, 68% said they would postpone their purchase to another time.
  • 57% of customers will buy a product somewhere else if they don't have access to finance.

But wait!” you say, “I provide a B2B service! Everyone knows that B2B and B2C are totally different!”

This is, of course, sometimes true, however, when it comes to financing, the difference is small… Businesses are run by people as well. Those purchasing for businesses make decisions based on the availability of finance all the time. If you have been in business for more than five minutes you already know this. If you haven't stepped up your marketing campaigns, it isn't because you don't want to. You aren't running 15-year-old computers because of nostalgia. It's because you don't have the money up front to make these necessary purchases.

You know that if you could get a loan or some up-front capital, you would immediately invest in items or services that would help you grow your bottom line. Smart businesses know that using a little up-front debt is one of the best ways of making it out of the red and into the black.

Your B2B company can use the same principles that smart B2C companies use: provide financing at the point of sale. This creates a win-win situation both for you, who can close that new contract and also for your clients who can now afford to use your services immediately to increase their competitiveness.

BUT...

Be wary of third party services who take your customers off-site to give them credit!

When you use a 3rd party finance solution you run the following risks:

  • You lose contact with the client! When you use a third party, you are effectively letting that finance company close the deal for you!
  • You can suffer a hit to your reputation! That third-party finance company may not understand your value and may not consider it worth the risk to the client. They don't know what you can do. Do you want to leave it up to them to say whether your client needs your services?
  • Third-party financing companies have traditionally had low acceptance rates. If your client is declined, they are highly likely to give up right away.
  • If your client is accepted, they are suddenly dealing with someone who is not you! All that work you put into your brand becomes diluted. They've lost the personal experience of dealing with you. They now have the money, but could decide to spend it somewhere else!

InFund's White Label Solution can solve all of these problems.

  • The point of sale finance is seamless with your brand. There is no third-party taking credit.
  • The application process happens directly on your site, with no waiting or interference
  • Using real time credit reporting, as opposed to historical credit, means you get a much higher acceptance rate for your clients. You can say yes where others say no.
  • The risk to you is non-existent. Once approved, InFund pays you immediately. The client pays us. InFund assumes the risk for repayment.

The entire process is seamless. You land the sale. Your client enjoys the benefit of your services and enjoys immediate ROI. It is the definition of a win-win.

 

inFund

Written by inFund

inFund is a loan and credit facility provider supporting SMEs to grow and finance their ambitions.