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    6 Replies Latest reply on Jun 1, 2010 2:21 PM by TX_Furniture

    Need business owner opinions

    EPS_Tim Newbie
      I would like to know your thoughts about offering your customers a 90 day no credit check financing program. The customer only needs a checking account and a job to be approved and also cant be a bad check writer. They are run through a database before approved because once they are approved you as the business owner are guaranteed payment if they default. For example if I come to your store and my total purchase is 1250 dollars I can write you my first check for $275 that day and then additional post dated checks on my pay period. So lets say I write you 4 more checks and date them for every Friday for the next 4 weeks. You input the checks into a check imager along with the information for when the money is to come out of the account and the amount. the customer signs a receipt and a one page agreement and they can take home your product or use your services and you are guaranteed payment by the financing company. If the purchaser defaults between the 11th and the 24th you are paid on the 25th and if it is between the 26th and the 9th you are paid on the 10th. You don't receive all your money up front like you would with a credit check financing option. You get paid as they pay. With over 50% of people unable to qualify for a credit card or traditional financing how much do you think this would increase your sales? How many of the im just looking, or I only have this much money to spend customers could you help? I want to know you pros and cons about this program and any questions. I am asking this because I own a company that provides this type of service and I have seen it improve sales when advertised and used correctly by an outstanding amount. Be as honest good or bad I want your feedback.
        • Re: Need business owner opinions
          phanio Pioneer
          Interesting. First, it sounds good - find ways to increase others sales.

          My one question is this - if the credit card companies will not take a chance on a person and they have access to credit scores, income and debt levels - then why would a merchant who knows nothing about the cusotmers?

          Nice idea - but I think you might be better with a paypal type model - where theu funs are already there.

          Business Money Today
          www.BusinessMoneyToday.com
            • Re: Need business owner opinions
              EPS_Tim Newbie
              The business owner takes NO risk. If the customer is approved the business owner is GUARANTEED payment. And that is without a credit check. I am talking about getting the over 50% of people that cant get a credit card because of divorce, lay offs, and just plain crappy economy but now have a job and checking accout and have no other financing options
                • Re: Need business owner opinions
                  phanio Pioneer
                  OK - you sold me - but I am not your customer or potential customer. If there is no risk to the business owner - beside the fact of you going out of business before they get paid - then all the power to you.

                  Do you have an idea of who your customers are? Are they brick and mortar retail, online retail, B2B, service industry? If you can narrow your target market - find out how they get and process information, then get out and sell to them.

                  Your target market might not be on this forum.

                  Once you identify who it is you want to target - then narrow it further (find a niche in the market) and really put all your efforts into selling to them. Once they are on board, then start to expand your reach. The reason you start with a niche is 1) limited resources and 2) to find out what works and what doesn't.

                  Best of luck to you.

                  Business Money Today
                  www.BusinessMoneyToday.com
              • Re: Need business owner opinions
                vnavguys Tracker
                I think you may open yourself up for "headache of the year" Why not use some of the existing services that let customers pay over time? I would let them deal with the painful management of this type of program. I am a firm believer in protecting your mental health when it comes to operating the business.
                • Re: Need business owner opinions
                  TX_Furniture Newbie
                  I own a furniture store and would like to know more about this service. If you could, please email me at stangboi75070@yahoo.com