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Is In-House Financing The Solution For Furniture Retailers?

Furniture World Magazine

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Retail Credit is being withheld causing many retailers to try to find a buyer for their retail sales contracts.  Higher interest and larger discounts are not enough for the finance companies to purchase the contracts.  Credit is not offered as before, therefore to survive in business, it is necessary to have your own in house finance company.  If you don’t have one, then you should seriously consider starting one.  It is a self supporting protection for your business to succeed.  Outside finance organizations have raised their requirements so high for that only a few people can now qualify for credit.

Credit Cards have been a source of financing for smaller amounts.  That availability may be eliminated with the new laws soon going into effect.  The credit card interest and requirements to get a card are higher, and credit limits may be much smaller.  Consumers will be looking for retailers with in house financing.

Take the fear out of financing.

The first step in managing your own financing is to select a software program that will successfully support the monitoring and communication functions of a finance company.  Financing is the key to business success.

  1. Financing is a very profitable business
  2. You can manage your own credit accounts.
  3. Double your profit without increasing your sales.
  4. Finance is the largest industry in the world.
  5. There is almost no cost in generating the business.  You have created all the
  6. forms and contracts at the time of the sale.
  7. You can make the sale and retain Customers Loyalty.
  8. Payments will provide daily cash flow.  As you add to your portfolio the cash flow will also increase.
  9. Interest is charged every day of the year. 

Businesses are losing their availability of outside financing.  There is no better time to start your financing than now.

Your finance division or company is the “Life support system” for your businesses.  The criteria for purchasing an account has not changed for the companies who do their own financing, therefore they are doing business as usual.  Many of these stores have gained volume because they can finance sales that the others lose. Larger down payments will make the contracts stronger

A customer who has purchased over the years, and are suddenly turned down for financing a new purchase, can destroy the customer’s confidence and loyalty.

Start your finance division now and each month as you add more contracts your daily cash flow will become sufficient to support your business.  If you re-invest your finance profit it will grow at a much faster rate.  At that time your business will be self sustaining and will not depend on others to dictate your success or failure.

Articles have been written on “How to buy a Contract”, setting up a Credit Policy, and How to Collect accounts.  Monitoring and communicating with your customer is very important for finance management.  Learn how to analyze your accounts for the best return on your investment.

Remember that investing in your own finance division is the best insurance that your company will succeed in business.


About CreditStar Software: The finance experts at American Software & Computers, the creators of CreditStar consumer finance software, have been in the credit business since 1968. If you like you can also subscribe to American Software’s Finance Contract Servicing powered by CreditStar. You just pay a small fee by the month per account and we do all the work and you deposit all the payments in your bank account. You can learn more about financing and CreditStar by visiting their website www.creditstarsoftware.com  or call 1-800-617-8271.


Richard M. Hadad

President

American Software and Computers, Inc.

9613 Menaul NE

Albuquerque NM 87112

800-617-8271