Cash Flow Vision: Consumer Financing

Consumer financing through retail installment contracts is a method to increase your sales while providing your customers more flexibility in payment options. Retail installment contracts allow a customer to pay for a business' product or service over time in fixed monthly payments. A common retail installment contract example is the purchase of a television at a big electronics retailer.

Until recently, retail installment contracts were limited to large companies with substantial customer bases. However, Cash Flow Vision now works with funding sources that assist businesses of all sizes in developing increased sales through consumer financing.

Some of the benefits of offering consumer financing include:

Giving your business the opportunity to increase sales without increasing your overhead

Increasing your customer base without developing, maintaining and staffing an expensive in-house computer system

Allowing you to compete with your larger competitors by offering in-house financing to your customers

Using our funding sources' "Optional Billing and Collection Services" to lower your administrative costs and time spent on billing, collecting and accounting for your receivables.

Example Transaction
How would a retail installment contract work? Let's look at an example:

John Smith made a purchase at XYZ Widgets for a total of $4000.

John signs a retail installment contract agreeing to pay XYZ Widgets the $4000 over a 24-month period, paying $197 (at 18% interest) each month.

Rather than collecting small payments each month, XYZ Widgets turns around and sells the contract to ABC Funding Source. XYZ Widgets receives a lump sum of $4000 minus a small fee and ABC Funding Source is now responsible for collecting the monthly payments from John Smith.

Benefits to XYZ Widgets

Immediately converts Accounts Receivable 'paper' into cash

Can pick and choose the contracts they want to sell

Saves time, energy, overhead and money because ABC Funding Source is now assuming the paperwork, bookkeeping and collection calls.

John Smith's Perspective

John sees no appreciable change. The terms of his payment contract will not change. He will be sending his payments to ABC Funding Source at a different address.

Working with Our Funding Sources
Our funding sources are quite flexible in working with you to find the best solution for your business. In general, retail installment contracts are structured as follows:

Contracts with individual consumers (not other businesses)

Consumers with 'A' and 'B' credit (most banks only allow 'A' credit)

Contract amount of between $500 and $15,000

Minimum down payment of 10%

18% Annual Percentage Rate (APR)

Contract term of between 6 and 60 months

If your business does not currently offer consumer financing, our funding sources will work with you to structure ideal terms to obtain top dollar on every contract you sell.

If your business currently offers consumer financing, our funding sources can purchase your existing contracts as well as help you optimize future contracts to yield the best results.

4 out of 5 consumers today buy on credit. You could be losing up to 40% of business to your competition. The success of your business relies on your ability to provide flexible and convenient payment options to your customers. Cash Flow Vision is ready to help you take your business to the next level. So contact us today, we look forward to hearing from you!