Offering financing to your customers can have several benefits for your business. It can increase customer loyalty and increase revenue, as many customers are willing to use financing as a means of purchasing a product or service. Offering financing can increase your average transaction size, attract new customers, and encourage repeat business. In addition, it allows your customers to take on larger financial obligations, and gives your business more purchasing power. Below are some of the other benefits of offering financing to your customers.
Having a loan available for your small business can allow you to pay lower interest rates than other forms of financing. Banks also give you tax breaks, so that you do not have to pay taxes on the profit you make on the loan. Small businesses also benefit from this type of funding because it boosts their credit scores, which in turn improves cash flow. As an owner, you should always be compensated for your work, and you should keep your personal finances in good order.