How In-house Financing Will Benefit Your Business in 2022

How In-house Financing Will Benefit Your Business in 2022

One fairly easy way to increase your business’s profit is to increase the number of current customers obtaining the services you provide. Gaining more customers can be as simple as making your product more affordable via financing options, including in-house payment plans. Today, we will discuss the benefits of in-house financing, the similarities, and differences between traditional and hybrid forms of in-house financing, and how your business can partner with a financial company to offer hybrid in-house financing to your patients.

How Does In-House Financing Work?

By creating an in-house financing contract, you and your customers are essentially establishing a payment plan. Under this plan, clients will be expected to make a set number of equally-priced payments to your business after receiving services from you. Customers must continue to make payments until their debts are paid in full. However, it is up to a customer’s discretion if they would like to pay off their plan early. Depending on the type of in-house financing a customer has, their credit score will be affected by their ability to pay on time. This is a good way to reward customers who are timely by helping them build their credit.

Benefits of In-House Financing

By offering in-house financing, your business will benefit immensely. When prospective customers are able to access the services you provide because of the affordable payment plans available to them, they will be more likely to acquire services that may have otherwise been outside of their budget. Many times, offering flexible financing options and high-quality services will facilitate the creation of close relationships with your customers, creating brand loyalty. As your customers continue to be impressed by your helpfulness, they will be more enticed to recommend your work to the individuals around them. This will create a snowball effect, with the number of customers who speak highly of your services growing and resulting in more customers for you.

As your business obtains a larger customer base, stakeholders will earn more profit. Additionally, the more customers who have in-house financing plans, the more protected your business’s funds are. This is because the impact of a single customer defaulting is much smaller if your business has 100 customers with payment plans than if only five customers have payment plans. Ultimately, offering in-house financing plans will lead to more cash flow for your business.

Traditional vs. Hybrid In-House Financing

In-house financing is a general term used to refer to either traditional or hybrid in-house payment plans. To finance services in-house, customers and the businesses with whom they are working establish payment plans in a direct contract, rather than a patient having to apply for financing options such as credit cards or loans through outside financial companies.

Some of the perks associated with in-house financing are that payment plans generally have low- or no interest, no prepayment penalty, and clearly outlined monthly charges. Additionally, in-house financing is beneficial for clients because businesses only run a soft credit check on applicants. Most other lending companies run hard credit checks, which drop applicants’ credit scores by a few points. It is simple for customers to apply for in-house financing online from anywhere in just a few minutes!

Hybrid in-house financing occurs when an outside payment plan company works with a customer on behalf of a business. This third party ensures that customers with in-house financing meet all of the legal and contractual requirements of their payment plans. Essentially, even though customers can sign up for in-house financing through the business with whom they are working, their payment plan is outsourced so that businesses do not have to act as financial companies.

Hybrid in-house financing is more straightforward for customers than financing via an independent lending company. Under hybrid contracts, customers are usually charged interest, but this interest rate is typically lower than financing through an outside company. The payment plans created via hybrid in-house financing can be altered after a contract is instituted if business owners approve such changes. Therefore, if a client becomes economically burdened by outside costs, they can continue to live their everyday lives without worrying about missing their due payments, dropping their credit score, and impairing their credit history.

Start Offering In-House Financing

With all of the benefits that in-house financing options offer customers and businesses, it’s no wonder why many service-industry companies offer flexible in-house payment plans! At this point, you may be wondering how you can take advantage of hybrid in-house financing so that you can maximize business while minimizing the time you must spend acting as a financing company.

Businesses of any size can partner with Denefits to extend hybrid in-house financing to their patients. Denefits is a unique company because it extends payment plan financing to 100% of applicants. The company does not check applicants’ credit history, meaning that all customers with payment plans are presented with the same deals regardless of their credit status.

Denefits copayment plans come with a general APR of just under 20%. This rate is incredible compared to other financing companies, especially for patients with poor credit. Some patients may even qualify for lower APRs depending on the length of their contract.

Denefits do not surprise patients or customers with hidden fees or modified conditions; all arrangements are transparent and enforced accordingly after being consented to by all parties involved. Payment plans enable customers to finance the services they need over months or years, which makes acquiring costly services much more feasible. Working with Denefits will allow your business to serve a more extensive customer base, which will help you bring in more money and make many customers happy.

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