If you operate a retail store, you know how important it is to have multiple streams of revenue that you can count on every month. Maybe you have considered offering consumer credit to secure new customers and encourage existing customers to spend more. However, the option has always been out of reach for smaller retailers until now.
What is Consumer Credit?
A branded consumer credit card works much the same way as a major credit card. People fill out a short form to apply for credit, and those who receive approval have a credit line assigned to them. Many retailers choose to offer an instant credit option, so people do not have to wait for their card to come in the mail before shopping at the retailer’s store.
The biggest difference between major credit cards and branded consumer credit cards is that people can only use the second type while shopping at your retail store, either online or in person.
Benefits of Consumer Credit Cards for Retailers
As the retailer, you receive funds from the customer’s sale within a few days. The lender that approved the account bears responsibility for billing the customer and initiating collection activity if necessary. More lenders than ever before are willing to work with smaller retailers to offer their customers a branded credit card.
People tend to follow through with a big-ticket purchase more often if they have the option to buy on credit without tying up funds on their major credit card. This is especially true if the lender offers an introductory period with no interest. Consumers also purchase more items in general when they can pay off the balance over time.
Are you ready to learn more about consumer financing options for your small business? Reach out to GM Capital Group to request a consultation today.