Banks and lenders are constantly looking for ways to get in front of more customers, but marketing and customer acquisition costs are high. This makes new marketing efforts somewhat high-risk, and businesses seek out high-ROI options with proven results before all else. Luckily, the rise of point-of-sale installment loans has proven to be a consistent money-maker for lenders looking to extend their reach.

As opposed to a traditional marketing expense, POS financing is actually an additional service that lenders can quickly and easily offer to consumers, and it allows them to be placed directly on merchant checkout pages in front of customers that are already ready to purchase. This brings in a plethora of well-qualified, hot leads that are already near the bottom of the sales funnel.

To help lenders understand how to get started, we will cover:

• What point-of-sale installment loans are
• The benefits of offering them
• How lenders can get started within weeks

Let’s dive in and cover all the bases so that business owners know exactly what to do next.

What are Point-of-Sale Installment Loans?

Point-of-sale installment loans are consumer loans offered directly on a retailer's website during the shopping and checkout process. These loans often offer more competitive interest rates than traditional personal loans, with “pay-in-four” options that offer zero interest, making them a no-brainer option for consumers looking for a bit of flexibility.

This can help consumers whose only hesitations regarding a purchase are finance-related and can be especially helpful during holiday seasons when consumers are looking to spend a lot of money at once. This financing alleviates the initial financial burden, allowing consumers to purchase more products or premium options with better margins.

The Benefits of Offering Point-of-Sale Installment Loans

There are a number of benefits for lenders that decide to offer point-of-sale financing to retail consumers, some of which we have covered already.

The most significant ones are:

• Higher volume of leads
• Better quality leads than most other marketing channels
• High ROI
• Quick and simple to deploy
• Potential to modernize the application process.

Quantity and Quality Leads = Higher ROI

By embedding financing applications onto online retail checkout screens, lenders can easily extend their reach without consumers feeling like they are being hard-sold on a financing product. Instead, it feels like a helpful service that will make a purchase they were already looking to make much easier. This establishes a stream of new leads for lenders.

But quantity isn’t the only important factor when choosing a new marketing strategy. Lead quality can be even more important. Point-of-sale lending provides extremely well-qualified leads due to the fact that it is presented at checkout. As we have mentioned, these consumers are already looking to spend, and this positions installment loans as a cost-saving opportunity as opposed to a separate purchase.

Quick and Simple to Deploy

There are qualified fintech firms that specialize in creating and maintaining point-of-sale lending platforms that connect lenders with consumers. As a result, lenders are able to deploy a new point-of-sale installment financing product within weeks by simply partnering with one of these third-party fintechs.

Modernize the Application Process

Quality consumer lending platforms can do much more than simply embed a lender’s existing application onto a checkout page. Some fintech firms create the most convenient, fast, and user-friendly applications possible to ensure that no leads are lost due to bogged-down or outdated application processes.

Skeps is one of these fintech firms, offering one-click applications for all types of financing, as well as other benefits that will position lenders as competitively as possible in the modern age of consumer finance.

Leverage Point-of-Sale Installment Loans With Skeps

Skeps offers a comprehensive, end-to-end consumer financing platform that helps businesses modernize their entire payment process. Working with an entire network of established lenders, we go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:

• Installment financing payment plans
• Co-branded credit cards
• Consumer loans and leases

If you’re looking to partner with a forward-thinking fintech company that will keep consumers' eyes on the purchase while offering best-in-class financing, Skeps is the perfect fit.