Partnering with a consumer financing firm that handles the entire lifecycle of the loan is a game changer. Keeping all loan and account information with one party streamlines every aspect of financing, delivering a better customer experience and simplifying administration tasks for your business.
Let’s run through a few reasons why you should have a consumer financing company that manages the full lifecycle of the loan and where you can find the right financing partner for your business.
1. Create a Seamless Customer Experience
Customers want convenience and simplicity throughout their buying journey, including at the point of purchase and in their payment plans. Splitting loan management responsibilities creates a disjointed approach that creates inefficiencies for both your client and your company.
However, entrusting your financing partner to manage the entire loan, from application to credit approval to loan closure and every stage in between, ensures a smooth experience for the client. Maintaining a single location (and point of contact) for autopay for loan repayment eliminates confusion and creates a seamless customer experience.
2. Facilitate Simplified, Cost-Efficient Operations for Your Business
Outsourcing consumer financing reduces the administrative burden on your teams and business. Instead of balancing part or all of a financing program, partnering with a firm lets you offload those responsibilities into trusted, experienced hands. This allows you and your team to focus on the operational tasks that require your attention and expertise while your financing partner handles application, approval, payment collection, customer service, and compliance. Working with the right consumer financing firm returns time, energy, and money to your business as you save on salary, holding costs, and the overhead required to run an in-house financing program.
3. Reap the Benefits of Enhanced Customer Retention
Assigning consumer financing to a trusted firm ensures your clients receive specialized care regarding their financing application, account, and loan repayment plans. These businesses understand your customers’ needs and proactively meet consumer demands for simple, accessible, trustworthy financing programs.
Consumers want their loan information in one location with one company. Partnering with a firm that manages the full lifecycle of the loan ensures all client data and account information is consolidated, allowing for consistent, accurate communication and efficient loan servicing. This streamlined approach means your customers are served faster and better, which will positively affect your retention rates, word-of-mouth marketing, and online ratings and reviews.
4. Gain Access to Data that Shapes Business Decisions
End-to-end loan lifecycle management provides insights into every stage of the loan. When your partner manages financing from beginning to end, they can gather metrics that inform your future decisions.
For example, financing partners can gather data on
- Approval rates
- Customer payment behavior
- Merchant portfolio performance and more
These insights can help your business refine its offerings, and provide solutions that increase affordability and accessibility for the most customers possible.
5. Compliance Made Easy
Providing consumer financing is more nuanced and complex than simply creating a payment plan for your customers. Businesses must comply with state and federal regulations when managing installment loans, payment collection, and consumer data.
Navigating these complex regulations is a huge task that can be overwhelming and time-consuming for in-house teams. Staying compliant isn’t an option; businesses must ensure every detail is accounted for and all rules are followed perfectly to maintain compliance with regulatory bodies and preserve consumer trust.
A partner that manages the entire lifecycle of consumer financing loans is well-versed in compliance requirements, reducing your risk of legal or financial penalties.
6. Improved Cash Flow
Cash flow is like oxygen for your business. You need consistent, accessible cash to keep things running as they should. Payroll and overhead, marketing, business expansion, and everything in between rely on a solid cash flow. When you attempt an in-house financing program, you risk a slowed (or halted) cash flow stream, and you risk jeopardizing your company: even a few days without cash coming to your business can cause major issues.
Having a consumer financing company to manage the entire lifecycle of your customers’ loans mitigates your financial risk by maintaining cash flow to your business. The right firm will handle payment plans, collection, and follow-up on missed or late payments, and they’ll promptly compensate your business so you can access funds as soon as possible.
Full-Service Consumer Financing with United Consumer Financial Services
A company with complete lifecycle management will have the expertise to serve you and your clients at every stage of the financing process. Running a business requires all you have –– and more. You can trust United Consumer Financial Services to manage the entire lifecycle of your consumer financing loans so that you can focus all your energy and effort on your business.
UCFS has managed start-to-finish consumer financing for businesses for over 45 years. We know what our clients need and want to best serve their customers with affordable, flexible payment options that work.
We offer
- A paperless, user-friendly application that can be completed in just a few minutes
- A prompt credit decision that allows you to proceed with the sale
- Same-as-cash payment options to attract your customers to make their purchase and not pay interest.
- Flexible repayment plans that increase affordability, even for big-ticket items
- Clear, consistent terms that garner customer trust
- Fair interest rates that serve the consumer
- Payment collection through the life of the loan.
Partnering with UCFS for consumer financing helps you increase sales, maximize revenue, and make the most of every customer relationship. Reach out to our team to learn how we can simplify financing for your business with end-to-end loan management.