Online shopping has become the most popular way of purchasing anything and everything. Right from clothing to furniture, electronics to wellness products, you name it and there will be a provider in this world for the product you are looking for.
Everything we need can be bought online and with digital payment being a viable option, it has held all of our industries been in testing times like the present times. The present scenario has accelerated this process and almost every payment is online and digital.
With all of our purchases just a click away, we seem to need more things than ever. With an overwhelming list of things, it is hard to afford everything just ago and it is at this perfect time that this option of Financing has been introduced.
When you buy something online you might have come across something that gives you a monthly payment plan. A longer payment window takes away the burden of payment instantaneously. With your total payment broken down into little installments enables a lot of people to afford things that they cannot at just one shot.
It is this place where POS that is Point of Sale Financing comes into the picture. These options are called point-of-sale loans, or POS loans, and they seem to be sprouting up everywhere. But like any loan, POS loans come with terms and conditions that you want to be aware of before you sign up so you can come to make an informed decision.
Want to know what POS Financing is?
POS Finance is Point of sale financing when you are provided with an array of financial solutions and options for you to choose from at the time of purchase at the retail stores. It is a sort of personal loan which helps you in purchasing items like furniture, electronics as opposed to a more traditional choice like credit cards, which are usually used to buy a single product.
POS financing is a broad and umbrella term that describes a variety of options for the shoppers which is flexible for them and they have an advantage of, pay-over-time installment options.
In some cases, shoppers apply for a one-time installment loan at checkout to help break their purchases up into smaller monthly payments. In other cases, a consumer might sign up for a payment platform that has a partnership with the specific retailers and provides them with the option of choosing a payment plan that suits them the best when they check out.
Installment financing
The colloquial term for financing is considered a type of an unsecured and risky type of loan, and in earlier times it was mostly used to acquire big and hefty items like furniture, electronics, jewelry, and many more.
But in present times we are offered this alternative with almost every purchase that we make, be it clothing, paintings or even for cosmetics.
Even in sectors like the airline and travel industry POS loans have garnered attraction. This has been such a welcoming step especially among the youngsters who can now travel freely and not think of paying back the amount all at once. It provides freedom to choose without any hassle and burden of full-time payment.
Quick and easy things to grasp about POS financing:
- Even amid all this glory for the POS finance, it is not all that secured. It is a contract that needs to be signed after considerable thought to make an informed decision.
When it comes to the monthly payment that you need to make, you have to keep a tab on what would be the exact amount and what is your exact payment window. There are many options like 12 months, 6 months, 3 months available and you get to choose one that suits you the best.
You need to think through whether you will be comfortable paying the quota every month and plan the rest of your expenses accordingly.
- Suppose you decide to return the product, what are the formalities, how does the entire installment plan look like? There is a need to find out what is the return policy of the store, and this is an important question to ask even before you finance a loan to pay for any product you are planning on. What are the criteria for returning, the clauses, the return date window, and all the other regulations before investing
- You can opt for another option which is the APRs. These offer a 0% interest rate in a particular promotional offer window. It is a great stress-free option that customers go for as these have added benefits of not working off your credit utilization.
This has become a very popular option because it is hassle-free and can be paid off easily unlike loans which can be accompanied by interest rates and other regulatory clauses.
- The advantages of POS finance are multi-fold. For retailers, it brings in an increased and varied customer base. Retailers are always looking for an effective way in which they can attract more consumers into their establishment.
- When it comes to the customers, the major edge is that usually for personal loans, there is a lot of processes involved like getting your credit scores checked into, and this entire process is a long and strenuous one, but when it comes to POS financing, the action is a smooth one with endless opportunities. POS Financing solutions are open for anyone and it is this open and transparent system that attracts a lot of customers to take up this option.
For customers, this process provides low-interest rates, very clear and detailed as to what amount they ought to pay back, and is mostly processed faster than personal loans.
- With POS financing, customers are offered more than one payment option to better suit their budget needs. They can opt for different payment windows in the place of using credit cards which will provide them with more options and freedom to choose from their best options. This gives them more economical payment options so they can purchase items they need now and pay them later on.
- The ease of not having to forage for financing options elsewhere can ensure a positive customer experience. When a customer with low credit scores has been provided with this option when other retailers didn’t offer them this action, you have got yourself a very happy and long-term customer.
- POS’s one of prime goals is to provide a smooth functioning channel for checkouts which would be beneficial both for customers and retailers. This provides them with a swift and easy payment gateway for themselves.
POS System has since its arrival created a positive wave and impact in the way we look at payments, gateways and the ease with the system has been seen in its implementation in all of the stores.
When customers are given the control to choose their payment method and when it is stress-free, it becomes a crowd’s favorite.POS financing methods are profitable both for the retailer and the customer. It helps the retailer reach a large audience and reach which giving the customers a hassle-free retail experience.
In conclusion, before you decide to choose the POS lending option, do consider and think through all the facets of your decision, the impact it has on your credit cards, the monthly payments that you have to make, the new way that you need to manage the expenses and the return policy that the store upholds.
