Does retailer offer consumer loans through its own funds?
Hi Jeff White,
Your paper on “How to Offer Customer Financing: In House Financing Without Breaking the Bank” is very interesting. In this paper, you mentioned that the retailer can offers in-house financing through the third-party like Blispay, and we know that most of the retailers do the same.
Now I am wondering whether some of the retailers offer in-house financing not using the third party, but using their own money. Thanks for your valuable time, and it will be highly appreciated if you can give the some guidance.
This is certainly a possibility, depending on where your business is at financially. It can be very straining for a company to financially offer this to many customers due to the percent of customers that make late payments or who end up not making payments. If you’re struggling with cash flow in anyway currently then this could make your entire situation worse.
However, if you have plenty of cash then this type of financing solution could be a great solution for your customers and a nice second income stream for your business. You’ll be on the hook for your full cost of whatever product or service you’re offering, however, until the customer pays. Just keep that in mind. If you can financially make that work then go for it, but most small businesses either can’t or won’t have that much money at risk at any given time.