Lease with Purchase Option
Ever had a customer leave your store empty handed because of lack of cash?
How many times a week do you have customers leave after being turned down for financing?
It’s no surprise that the majority of lenders that provide financing are denying over 45% of merchant’s consumer credit applications with credit scores being the main factor.
But there is good news for you because there’s an alternative financing option that can help you capture those lost sales regardless of how damaged your customer’s credit is.
Think about this for a moment and ask yourself how many more sales could you gain by offering no credit check financing?
Think it sounds too good to be true?
Well, it’s not and there are companies like Progressive Finance that specialize in offering merchants like you a lease with purchase option for your customers who don’t want their credit checked, can’t obtain primary financing due to poor credit, or lack the money they need for a down payment.
In a recent press release Progressive announced a new web site designed to better streamline the lease buy option process for store owners. Curt Doman, owner of Progressive says, “We are continually innovating and improving our services and the new website was naturally the next step. We designed it to be informative, interactive and user-friendly.”
In a nutshell this is simply another financing tool you can offer potential customers who want to purchase your products but would prefer to pay the price in monthly installments.
Best of all when you use a financing company you get paid for your products upfront with no obligation to your customer financially from that point forward. But keep in mind you are still responsible for any warranties you offer on your products.
Here’s how it works:
There are three main factors that a financing company considers for approval which are:
- Bank Account
First, an applicant must be employed with the same employer for a minimum of six months. Secondly, their monthly income must be at least $1,000 and a minimum of $500 has to be deposited into their checking account each and every month. Finally, they need to have an active checking account for at least three months with no NSF or excessive overdrafts in the past 30 days.
Once the applicant is approved then the finance company purchases the merchandise from your company and the customer leases it from them until it’s paid in full.
Now that’s what I call having an edge over your competition!
In today’s fast and competitive environment you should take advantage of all the creative ways you can to expand your customer base and increase sales by offering additional financing tools like the lease with purchase option.
What other creative financing tools do you offer your customers?
Looking for other sources of financing for your business? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>
About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.