Consumers want and need payment options as they shop for your products and services. Offering same-as-cash promotions helps you reach more customers, sell more, and grow your business. Read on as we explore the benefits of providing consumer financing and same-as-cash promotions.
What is Same-as-Cash Financing?
Same-as-cash financing allows customers to purchase goods or services without interest if they pay their balance in full within a specified period. Most same-as-cash options offer a limited repayment period from 6 to 24 months and entice curious shoppers to commit to their purchases. Same-as-cash promotions boast several key features that not only help businesses draw in a larger audience but also deliver a positive customer experience that bodes well for the company long-term:
- No Interest (If Paid on Time): Customers pay no interest if they pay off the full amount within the promotional period.
- Flexible Repayment Window: Typically offered for 6, 12, 18, or 24 months.
- Immediate Purchase Power: Customers can buy high-ticket items or services without needing the large upfront payment.
A same-as-cash promotion makes big-ticket purchases more accessible and affordable, facilitating more sales while ensuring businesses receive prompt payment.
How Same-as-Cash Financing Helps Businesses Grow
Providing financing options positions your business as an ideal choice for consumers who want and need payment flexibility. Same-as-cash promotions allow you to take customer service a step further with interest-free payments, growing your business along the way. Here’s how:
Attracts More Customers
Many, if not most, shoppers experience at least some hesitation regarding purchasing a big-ticket item. The choice is often between charging a purchase to a high-interest credit card, paying upfront with lump sum cash, or foregoing the purchase altogether. But when companies offer same-as-cash promotions, high-value purchases are more accessible, especially to budget-conscious customers. Adding a same-as-cash promotion to an already affordable financing option makes committing to purchase an easier choice.
Same-as-cash reduces the price hesitation associated with big-ticket goods and services by providing shoppers with affordable, accessible options. Financing options attract more customers, so you can serve more customers while selling more products or services.
Increases Average Order Value (AOV)
Consumer financing helps shoppers get more bang for their buck. When you offer a same-as-cash promotion, consumers gain even more savings, which they can funnel back into purchase upgrades or add-ons.
The promise of interest-free repayment encourages upsells, cross-sells, and upgrades that enhance the customer experience. Premium products and additional services feel more affordable because shoppers aren’t responsible for interest on their installment loans. Increased affordability and purchasing power give eager shoppers the confidence to add to their carts, leading to better purchase satisfaction and increasing average order values for your business.
Improves Cash Flow Without Added Risk
Positive cash flow is essential to the success of any business, regardless of the product offerings or company size. Predictable, consistent cash flow enables businesses to maintain day-to-day operations, covering overhead expenses like rent, payroll, supplies, and inventory. It also allows for growth. Enhanced cash flow means faster access to compensation, which you can use to grow your business.
When you offer same-as-cash promotions through a trusted consumer financing partner, you reap the benefits of improved cash flow without the typical risks of running an in-house financing program: complicated cash flow management, higher interest rates due to a greater administrative burden, and exposing your business to a higher risk of bad debt.
If you manage your financing program in-house, you are responsible for collecting unpaid loans, which can be time-consuming and challenging. A dedicated consumer finance company has the expertise to evaluate credit risk and collect customer repayment, allowing you to offer interest-free financing to a broader range of customers while managing risk appropriately.
How to Implement Same-as-Cash Financing in Your Business
Same-as-cash financing is an attractive option for shoppers seeking affordability for high-value purchases. Implementing a financing program and offering same-as-cash promotions is a simple, straightforward way to increase sales.
Promoting Financing Options
Simply offering same-as-cash promotions isn’t enough; businesses must promote financing options to show customers that they can reasonably afford the goods and services they want without impacting their budgets or planned spending.
A recent survey found that if customers were offered consumer financing options before they decided what to buy,
- 1 percent would purchase higher-value items or services
- 9 percent would purchase more items
- 7 percent would be willing to pay full price for an item and not wait for a sale
Highlighting same-as-cash promotions early and often throughout customer touchpoints primes shoppers for purchase. When you partner with United Consumer Financial Services, you get access to marketing materials, signage, and graphics that help you promote financing options and same-as-cash offers that draw shoppers in and give them the freedom and confidence to shop with you today.
Partnering with the Right Financing Provider
Choosing the right financing partner is critical to the success of your same-as-cash promotions –– and your consumer financing program as a whole. You need a partner with the experience, resources, and tools to facilitate financing.
United Consumer Financial Services has been serving businesses like yours for over 45 years. A division of Berkshire Hathaway, we have the expertise to anticipate and meet your needs and those of your customers and clients.
UCFS offers
- Transparent fee structures that clearly outline same-as-cash promotions, giving your customers a positive experience with your business
- Signage and training to help you and your team promote same-as-cash and financing options
- High approval rates that help you attract and serve a broader audience
- Low, affordable monthly payments that make big-ticket purchases possible
- Simple, paperless application and a near-immediate credit decision that streamlines the sale
- Consistent, straightforward repayment terms
- Prompt payment directly into your company’s bank account, typically in one to two business days
UCFS makes offering same-as-cash easy, providing the framework and support you need to implement an effective financing program. You can start with us today. Contact our team to learn how we can help you offer same-as-cash promotions and implement a consumer financing program that empowers you to grow your business.