There are a lot of instances where people look for a certain item for purchase but cannot pay the entire amount upfront. Many individuals come across such a situation in their lifetime. Be it small purchases regarding groceries or huge purchases like that of electronics the prices can sometimes hit a person’s wallet hard. In such a situation people often think about alternate ways to pay for the purchase.
One such possible financing solution everyone wishes for is to buy now pay later. This very solution is brought to life through Point Of Sale Financing. This allows people to make payments according to their convenience and avail services as necessary.
Many individuals today, especially the GenZ person, do not wish to wait to buy a certain product. They need to keep up with the market trends and make purchases according to their demands and wishes. The modern generation knows what it means to miss an opportunity to buy a certain product. This makes them more upfront about finance, and they wish to look for options that allow them to make quick payments and not miss on any opportunity of a good purchase.
This opportunity is given to all the individuals through Point Of Sale Financing. Let us look at what the POS needs to offer to all the individuals during purchases.
What is Point Of Sale financing?
Point Of Sale Financing is often known as POS financingand is available at the checkout point by the customers who cannot make upfront payments, that is they cannot pay the entire amount of the product at one point.
The POS allows the customers to fill out forms and look for finance providers who can help them pay the amount of the service. It also gives the customers the option to choose the interest rates and the amount they need to draw out. They can also choose among several finance providers and look for one that gives them the highest benefits. Let us look at the entire process in detail and other factors related to them.
How does POS work?
POS financing is available to customers at the checkout point of the stores. The entire process is carried out as follows.
● At the end of the purchase, the customer can select the finance option they want to use for the payment.
● If the stores have an S option they can click on the service and choose the amount they want the service for.
● After choosing the finance option the customer needs to fill in certain details of the form like name, address, purchased item, amount, duration of expenditure, and other details according to the requirement.
● Once all the details are filled in, the procedure is completed on the user end. The finance record goes through a water flow process and the finance providers now verify whether the customer is eligible for finance.
● The result is given within a few minutes and the customers can immediately know about the result. If the finance is not approved they can choose another provider immediately.
● Once the finance is approved the store receives the entire payment and the customer will need to make payment to the lenders according to the designated period and amount with added interest rates.
The present market has seen a huge rise in such a finance option and many new companies are coming up with providing this solution. Stores and retailers also understand the need for this payment option and this allows added benefits on the end of the stores as well.
The benefits of having a POS finance option.
● More customers
As the stores provide great options and services more customers tend to buy the product. This improves the sale of the stores and more customers buy new products.
High payment integrations allow the customers to feel respected and important and this makes them aware of the professional background of the store. This helps in attaining more trust from the customers.
● Improved sales
More customers and more sales. As the payment is made flexible it is easier for customers to avail of the product. It ensures that the customers receive convenience and a huge number of browsers are converted to buyers.
● More payment options
The finance option allows the customers to have multiple options of payment. This makes them satisfied and they can purchase at their convenience.
Things to keep in mind before leaping to Point of Sale finance.
The POS financing option might seem lucrative to many customers. Precautions need to be taken at each stage to avoid any discrepancies and keeping away from fraudulent companies.
● Read the print
Different service providers have different terms and conditions mentioned in their policies. At the checkout point, many customers make the mistake of not reading the terms appropriately and often fall in bounds that they never intended to make. This can dupe the customers and also charge them high interest rates. Ultimately, customers end up paying more than necessary to the company. To avoid this all the prints need to be read carefully.
A print is provided to all the customers once their point of sale loan is approved. This includes details of interest rates that can vary according to time and financial standing, time over which the loan is distributed, additional costs, penalties in case of late payments, and other details. Make sure to read the print very carefully before giving the green signal.
If you fail to understand the conditions properly you can fall prey to swindle. Late payments will deteriorate the credit history and you might not be able to attain any kind of loans in the future.
● Think before availing of service
Think if you really need a certain product and if you can make all the necessary payments in time. The finance options sometimes have high interest rates. These quickly pile every month and you might end up paying a lot of money unknowingly. Such a situation needs to be avoided. Check for appropriate services and avoid such purchases if you are not going to make any profits from the same.
In the end, POS financing is a great way to finance your new big purchase. If you are sure about the option this will never disappoint you. More than a 15% increase is seen in customers who avail of this service, and 92% of them are assured of using the same service again if given the option.
It also is the responsibility of the customer to have thorough research about such finance providers and be cautious before using the option. Check for the credulity of the company before you give the green signal.
Allison Janney is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.