Can a Small Electronic Shop or Other Small Business Offer Customer Financing?
I just received a question from a reader today who owns a small electronics shop and would like to offer financing for his customers.
Offering financing options for your customers can be helpful for almost any small business, but especially so for an industry like jewelry or electronics because these are bigger ticket items. Financing makes them easier to afford for your customers.
It’s easiest to go through a third party service to offer financing. These companies will process credit applications on your behalf and approve and reject customers’ applications based on criteria you set (e.g. credit score minimums). They typically charge merchants a small percentage of each financed sale (1-5 % is typical) or a flat rate.
Some companies that offer this service include:
-SmartPay (designed for sellers of electronic devices)
-PayPal Credit (if you sell online)
For more details and cost info for the companies, check out our article, https://fitsmallbusiness.com/offer-customer-financing/