If you’ve been paying attention, you already know that BNPL, or “Buy Now Pay Later,” and Point of Sale financing are two payment options for consumers that have pushed to the forefront in recent years. Why should you care about that? And what is the difference between the two?
Technology has dramatically changed how we shop. Not too long ago consumers could only pay cash or use a card for purchases. If you didn’t have the cash available, didn’t want to use a high-interest rate credit card, or if that card didn’t have enough available credit, you were out of luck. Today, thanks to technology, shoppers can choose an alternative financing option at the point of sale.
Point of sale financing is a phrase that may be new to you, but it is one you will be hearing a lot more about if you haven’t already. As emerging technology has transformed the consumer finance landscape over the past decade or so, point of sale financing has emerged as an attractive option for consumers looking to make big ticket purchases.
Debt to income ratio and credit utilization ratio; why do these two things matter and what do they mean? Both can impact what kind of loans or credit cards you are approved for, but only one will affect your credit score. Nevertheless, they are both used as indicators to creditors looking to determine whether or not you are able to take on additional financial obligations. Therefore, both of these should be taken into consideration when creating your financial plan.
You may have noticed more companies advertising or approaching you about offering home improvement financing at the point of sale. It seems everywhere you look, companies are offering customers new ways to finance their purchases. While point of sale lending is not necessarily new, it has seen a reemergence in popularity in recent years as newer technologies make it faster and easier. But, why should you offer this type of financing? Will it help your home improvement business? And why should you consider it if you already have a financing solution?