How To Implement Consumer Financing The Right Way
A consumer financing program implementation effort can serve a lot of good for both your business and its customers. It's important, however, to treat it as a process and to do the job well. This guide will help you as your company begins to offer financing options.
Understand Your Customers' Needs
As much as a consumer financing program implementation project is likely about your organization trying to expand its business, the reality is that you have to solve a problem that your customers have. Before you move forward with an effort, studies should be conducted to determine what kinds of financing your customers need and how you can best ensure that they'll be able to pay in full. By looking out for their interests, you'll ensure that folks come back to your business whenever they need to buy. More importantly, the solid reputation you build will become a selling point for your company and the program.
It's a good idea to think about the kinds of perks your customers want, too. Many program providers offer credit card rewards, such as travel miles or reward points that can be redeemed. Perhaps your customers would prefer cash back. Conduct surveys and in-person interviews with customers to learn what they'd like to get from the experience.
Staying in Compliance
Financing is, rightly, a highly regulated industry. While third-party providers will do their level best to keep you compliant, you should not operate under the assumption they're getting everything right for you. Many industries have specific regulatory concerns when it comes to financing, and you're responsible for staying on the right side of the law when those apply to the programs you provide. Have a long and serious conversation with your firm's accountant about financing rules.
In general, consumer privacy and fraud are the two biggest issues that come up in terms of compliance. This is why it's critical to set up a consumer financing implementation training regimen. All employees and contractors need to know how to handle the information that's gathered in the process. They also need to be acutely aware of what promises they can and cannot make to customers.
Along these lines, it's also prudent to give any contracts or agreements you intend to offer a good look. Third-party vendors offer boilerplate versions of their contracts. Sit down with a business attorney and decide what's right for you and your customers.