Financing is a broad concept and often involves multiple pathways in its association. Often customers who are looking for quick lenders through financing options like Point of Sale are not juxtaposed against applicants. Instead, they are juxtaposed in a continual flow. This method allows the customer to be eligible for all lender’s options, and if the request is declined, the request of the customer moves to the next customer.
This flow allows the customers to get multiple options at different rates, and several terms are applied. Other than that, the customers can themselves pick the service terms and rates that best fit them.
Pos financing can get a little overwhelming to understand at the first go. It surely needs a more in-depth understanding. Let us go through some questions that can help us to understand the concept more clearly.
Read more: The Beginner’s Guide to POS System
What is a multi-lender?
Multi lenders in POS financing is a network of lenders who work together to provide financing to the customers at the end of purchase or during checkout.
The concept is relatively new and is coming into existence slowly and gradually. The customer needs to fill in specific details before they can avail the services of the lenders like name, address, social security, and mobile number.
Filling out the given details makes them eligible to avail various services of financing, and their request falls in the waterfall of lenders. This has different rates, and terms and the customer can make a choice according to their needs.
Different companies work on cumulating the lenders under one house to let the customers enjoy maximum benefits. Such companies are gradually making their way up in the market and are creating a huge hype.
What is POS financing?
Point Of Sale or popularly known as POS financing allows the customers to divide the payment of purchase into different segments over a period. This falls under the category of buy now pay later in which the lender pays the money of the services. This type of financing was also known as brand credit cards, closed-loop store credit, and retail installments in many different parts of the globe.
The demand for such services has significantly increased taking into consideration the latest economic trends. It is estimated that the demand for POS finance is going to burgeon to about 35% in the upcoming years.
How does POS work?
POS finance has given very significant benefits to the customers to purchase things according to the requirement without needing any prior eligibility criterion. This allows the customers to make purchases according to their will and pay at the time period they decide. The steps in which these financing works is as follows:
- At the checkout point, that is after the purchase the customers select the payment option as POS.
- Then the information of purchase cost and the customer’s information is passed to a lender for the decision making process.
- The lender juxtaposes the profile and a decision is made whether to accept or reject the request.
- Once it is accepted the customers are given information about the terms and conditions and also about the rates associated with the same.
- The customers can make a decision, based on their rate requirement and distribution over a period of time.
What is a POS lender?
POS lender is a merchant or an individual who provides loans to the customers at the end of the purchase. This offers the customers the credits according to the requirements of the customers. The financing option is used in large purchases in the case of electronics, cars, huge grocery purchases, and many more.
The finance option is mainly used in the case of small businesses for the immediate purchase of goods. With advancements in technology, the finance option is now widely available, and more people are exposed to the concept increasing their popularity among buyers.
How can one offer POS financing?
POS finance is widely popular and also has a myriad of benefits associated with them, this feature enables more retailers to introduce POS finance in their payment options. To include this feature in the store, one can follow all the below steps for the same.
- Look for a point of sale financing option that best suits your need.
- Advertise the financing option to the customers to make them aware of the finance option and also explain the benefits.
- Incorporate the application process through an online platform and also through mobiles.
- Recommend customers the various options they can opt for. Also, ensure that they receive the decisions immediately whether their finance option is rejected or accepted by the lender.
- Once the customer avails of the services the customer can take the item and the retailer immediately receive the cash into their accounts.
Why is POS rising in popularity?
Roughly estimating POS financing is a trillion-dollar industry. The increased needs of consumers from the market and the generation of millennials have brought about this change. Several other reasons that affect the popularity are
- The growth of easy access of credit through phones.
- The opportunity to buy products according to convenience.
- No credit score is required to avail of the services.
- Convenience and immediate money through one-click transaction
- And so much more.
All these things have contributed to the popularity of the finance option.
Hardware required to apply POS system?
POS like any other system is quite sophisticated and uses multiple tools and devices for its application in the retail store. This includes devices like
● POS terminal
This can be a desktop or computer on which the software associated with POS works on. With advancements in technology, smartphones can also be used as a terminal. The advantage this provides is the convenience of usage.
● Credit card reader
This is the terminal that helps to read the credit and debit cards of the user.
● Receipt printers
In the case of POS financing, it becomes important to keep a record of the transactions, this requires the use of a receipt printer.
Other tools that can be used are a scanner to help manage the checkout process and a cash drawer for minimal cash payments.
Instant money has become the new normal for Gen Z. They often want services at their fingertips to buy whatever they want in the very instant. This need along with technological advances has given rise to this finance option. The transactions and the services related to POS finance are so easy to access that people are moving towards the services more prominently.
Though the services have drawbacks to it, yet the benefits associated are far more superior. This signifies popularity. So, what are you waiting for, whether you are a customer or a retailer, avail yourself the benefits of POS today.