June 9, 2008

Financing For Customers: You Can Do It Yourself

Our family loves watching DVD's of Little House On the Prairie. One of the scenes in many of the shows is some honest soul or gruff looking thief asking for "credit" for bread, eggs or a gun from the local shop. Back in those days, the shop owner did it by his "gut check" and doing his best to know the credit worthiness of his customers.

Today the "financing" option most of us use is our credit cards. This works for us, the consumer and also works for the business selling the goods and services. All the credit risk is between the customer and credit card company. What if there was a way, however, for YOUR business to offer customers (or certain customers) financing?

Prinion Customer Financing is a Windows-based modular financial management program that enables any retailer or service provider -- dentists, jewelers, plastic surgeons, attorneys, etc. -- to manage their own receivables to improve cash flow, increase earnings and generate more business.

Lonnie Lauer, president of Prinion said that businesses can expect a 15 - 20% increase in earnings from outstanding receivables. I don't think every retailer should manage their own financing, but in some businesses and in some cases, offering your own financing could be considered.

If you have a steady stream of customers buying your $5,000 machines, you might get a boost of revenue by being able to offer "good" customers financing options offered by your own business.

If you find yourself paying huge percentage points of your revenue to 3rd party financial services why not see if you can test the waters and offer your own financing to some customers with Prinion's software.

tags: finance , software | 0 comments