Consumer Financing Porgrams for Online Retailers

If you are a business selling a product or a service that costs more than $500, chances are that some of your customers will need financing to purchase your products or services. In today’s economy, finding quality programs are more difficult to find than they used to be before the economy collapsed. Prior to the decline, most major banks had program options that they could offer retailers and service providers. Many of those programs have either been discontinued entirely or have been credit restricted to the point where the are no longer effective enough for use.

Retailers and service providers have had to use alternative sources in order to offer the same types of promotional program offerings that they once had. Because of increased regulation and risk, many finance companies have had to increase their dealer pricing. This reduces the margins that the retailer has.

Online retailers selling products like furniture and jewelry typically have smaller margins than brick and mortar stores, so this increase in costs really hits them hard. In addition, online retailers don’t do business with their customers face to face, so they are limited to using programs that have the technology for e-signature and a completely digital process.