How Consumer Credit Works

How Consumer Credit Works

Consumer credit works in a manner that is very similar to credit cards. A line of credit is extended to consumers which must then be paid off over a period of time. When a customer is checking out, they would simply choose this credit option rather than using a credit card or any other form of payment. As a customer who chooses the credit option online, you might be asked for answers to several different approval questions, after which the lender will give you an answer on whether or not you’re approved.

If you are approved, the transaction will proceed and be processed, and this finalizes the sale. Typically, the retailer would receive the entire amount of the sale in just a few days, so from the perspective of the retailer, the transaction has been concluded. That leaves the financial relationship in existence between yourself and the lender.

Business Consumer Credit

Online businesses can take advantage of all the old-school consumer financing processes that have been in place for ages, enabling customers to make a purchase and then pay it off over some duration of time. This means customers can make use of consumer credit to buy big-ticket items, or go on a holiday shopping spree without the need to have any real amount of cash on hand. Consumer credit provides a number of benefits for both the retailer and the consumer, and that’s why it remains highly popular in today’s business world.

By providing consumer credit to customers, you’ll be enabling them to make bigger purchases and to buy more when they do make purchases. Many studies have been conducted to prove that this is so, and most studies have found that both the volume and the average value of sales increased by as much as 20% when consumer credit is offered. For the retailers involved with these transactions, they get the entire sales amount upfront, so it’s of great value to them as well.

Contact Us

If your consumer credit is less than perfect, you may have already had difficulty securing the funds you need from a traditional lender like a bank. We are not subject to the same kinds of restrictions that banks are, so we may be able to provide financial assistance. Contact us at Charis Commercial Capital so we can discuss some financing options that may be available to you.


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