I'd like to hear some arguments for and against offering customer financing.
For context I own a store (won't say the niche!). We sell things. Currently the only way I do payment is upfront. While this guarantees immediate ROI, I want to expand and scale. Customer financing seems like a fantastic way to do it.
I see some customer financing plans already which give people 2 months to pay off something. AfterPay and shit. That's not what I'm thinking though.
I'd like to jack up the price and then offer weekly/fortnightly/monthly payments over a year. Charge interest after a grace period and so on. I've run the numbers in my head. It seems fantastic, but so do all my ideas until they're put into fruition.
I feel like my returns would be guaranteed. If they don't immediately pay I'd get interest. If they go AWOL I'd be able to take them to small claims court (costs about $45) and do wage garnishment.
Doing this would allow my business to expand. I could target people who would think that it's in their price range to afford it. Before you know it I'll be on a yacht in Monaco 🤝
... at least that's the plan.
For context I own a store (won't say the niche!). We sell things. Currently the only way I do payment is upfront. While this guarantees immediate ROI, I want to expand and scale. Customer financing seems like a fantastic way to do it.
I see some customer financing plans already which give people 2 months to pay off something. AfterPay and shit. That's not what I'm thinking though.
I'd like to jack up the price and then offer weekly/fortnightly/monthly payments over a year. Charge interest after a grace period and so on. I've run the numbers in my head. It seems fantastic, but so do all my ideas until they're put into fruition.
I feel like my returns would be guaranteed. If they don't immediately pay I'd get interest. If they go AWOL I'd be able to take them to small claims court (costs about $45) and do wage garnishment.
Doing this would allow my business to expand. I could target people who would think that it's in their price range to afford it. Before you know it I'll be on a yacht in Monaco 🤝
... at least that's the plan.