Would you like to offer your customers payment by installments and need help? We explain how you can successfully offer installment payments in your webshop or stationary business. You can also find out here how your company can benefit from offering installment payments.
Why do you benefit from offering your customers payment by installments?
Your customers may have often asked you whether you also offer payment by installments. Until now, however, you did not offer this payment option because you perhaps thought that it was associated with a certain risk and payment defaults. However, selling in installments is risk-free if you approach it correctly.
So you have no risk and benefit from higher sales because your customers can finally pay in installments, just as they have wanted to for a long time.
By offering payment in installments, you automatically sell more because more customers can afford your products, even if they are very expensive. This inevitably results in you making more sales.
In addition, more new customers will become aware of you because you offer installment payments and your competitors may not. You gain these new customers, which also leads to more sales.
What options are there for offering payment in installments?
There are various ways in which you can offer payment by installments. The best option for you depends on your own situation as a company. On the other hand, it also depends on what kind of customers you have. Do only private customers buy from you? Or are they business customers? Are they start-ups, small or large companies? Are your customers located exclusively in Germany or also abroad? These and other factors play a role in the decision to offer payment by installments.
You offer installment payments yourself
One option is, of course, to offer installment payments directly yourself. As a company, you give your customer a loan. This is the most direct way, but it also has some disadvantages.
You have to take all measures such as credit checks, etc. yourself. And in the end, you have to assess whether you want to take the risk with the customer. Ultimately, the full risk is yours: If the customer does not pay his installments, you have to accept losses.
You work together with a financing partner
Another and safer option is to work with a financier. The installment payment is handled entirely by them. You receive the full amount from your financing partner after the sale is completed and the buyer pays him the monthly installments. If payment defaults occur, you are not at a disadvantage because the financing partner bears the risk and takes care of the payments.
The disadvantage of working with a single financing partner is that they will most likely not accept all of your customers. This means that certain customer groups, such as start-ups, private customers or buyers from abroad, may be excluded from the financier from the outset. This means that you can only offer installment payments to some of your customers.
You would therefore have to look for additional financing partners in order to be able to serve all your customers.
You work together with a leasing broker
If you work with a leasing broker, they will take over the search for suitable financing partners for you. This way, you can be sure that all of your customers can pay in installments, regardless of whether they are business, private or foreign customers.
Normally, a leasing broker already has numerous contacts with financiers and can therefore develop and implement a concept for your company in a timely manner. You can find out exactly how this works in the article Sales financing – planning, concept and implementation.
If a customer then wants to pay you in installments, the process is handled by the leasing broker. The leasing broker takes care of placing the request with the appropriate financing partner. As the seller, you don’t have to worry about anything and, of course, you will be credited the amount in one go by the financier once your product has been sold.
Offer installment payments in the online store or stationary business
This principle works with all kinds of business models. If you have an online store, you can offer your customers payment by installments in the same way as if you have a bricks-and-mortar store. Even if you sell via sales representatives or handle your sales over the phone, it is possible to offer installment payments.
Would you like to work with a leasing broker?
If you would like to offer your customers installment payments and take advantage of the experience and diverse options of a leasing broker, you have come to the right place. We will find a tailor-made solution for you and support you from planning to implementation. We offer you more than a single financier.
