Customer financing is an investment vehicle that some companies use to generate more revenue. Companies may use customer financing for some reasons, including capital expenses or projects that need long-term planning.
In customer financing, businesses offer their customers a way to finance their purchases through the business itself. This type of financing is also known as point-of-sale financing or in-store financing. Customer financing can be a great option for businesses and customers alike.
For businesses, offering customer financing can increase sales and help them attract new customers. For customers, financing can help them afford big-ticket items or make purchases they otherwise wouldn’t be able to afford. For more services, you may browse https://axximumfunding.com to get the financing benefits on long-term bases.
Image Source: Google
There are a few different types of customer financing:
Installment loans – With an installment loan, customers make regular payments over a set time until the loan is paid off.
Revolving credit – With revolving credit, customers have a set credit limit that they can borrow against as needed. They only need to make minimum monthly payments until the balance is paid off.
Deferred interest – Deferred interest financing offers customers a low-interest rate for a set period, after which the interest rate increases. This can be a good option for customers who expect to be able to pay off their loans before the interest rate increases.