1. Why should your company's own credit accounts
Have you considered what happens when you sell your contracts to an external finance company? The reason that outside finance companies want that your orders for the same reason you might want to keep it. To take a certain risk, the forms out and earn money! However, you can lose up to half of your profits to sell if your contracts.
Consider the investment you already in your contracts. They all workrequired to produce the contract, then give them away to a finance company. The financing of companies will screen them and select only those contracts that match their needs and buy you a fee for them. Your cost is only a credit bureau report. If you have your accounts well enough to buy for others, but they are good enough for you. The only reason that their contracts for the purchase, because they are profitable. You already have the staff, a desk and a computer. AddGood special software, a supply of stationary and you are in the industry. One of my clients told us that there is work an average of 2 hours per day, 6 days a week or 12 hours per week to 480 accounts.
Financing is a business that earns money every day of the year. If your business is closed for a weekend or holiday, the interest will still be purchased on a daily basis. The interest is no free days or holidays. Payments can be in any day of the month and you also get cash-flowwithout reaching a conclusion. Here are some other reasons that you want to own financing contracts:
2. Save the discount percentage:
Most finance companies require a discount on your purchase contract. They would save that amount plus interest and fees make additional profit on the sale.
3. Customer loyalty:
If customers need your products or services, customer retention is much greater if they are already well-established credit with you. A customer comesback to you somewhere other than open another account. This is especially true if they worried that they can not prove a different credit card accounts are.
With your monthly statements that you communicate with your customers, 12 times a year. You can place advertisements in the statement envelopes and the cost is just the time to fill them.
An added bonus is that you are the person who calls your customers if they are late paying.
They have a great relationship with your financingCompanies, and they can take over your customers as you want, but many retailers say that they are people who lose badly treated by external financing companies have been too.
They have much better customer, if your own staff to develop a call for collections, because you have a vested interest. Take care of outside finance companies do not always see to your customer relationship.
Usually they help very little, or the placement of your customers. It is veryadvisable to know the financial situation of your customers. Because you control of the accounts that you know when a customer pays late. That gives an early warning to the account follow very closely.
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