Price is rarely the only reason a deal stalls. Just as often, a customer wants what you're selling but doesn't have the full amount available upfront — a piece of equipment, a large service contract, a renovation. Businesses that can offer a financing option at the point of sale tend to close more of those deals, and close them faster, without discounting the price to make it happen.
The mechanics are simpler than most business owners expect. Rather than carrying the financing yourself — which ties up cash and puts you in the collections business — you partner with a finance company that extends credit directly to your customer. Your business gets paid in full, upfront, and the finance partner manages the payment plan and the risk of the customer not paying. Most programs can be set up to run in the background of a normal sales process, with the financing application taking a few minutes at the point of sale.
Businesses that want to offer financing to my customers usually have a few structures to choose from: a straightforward installment loan through a third-party lender, a revolving line customers can draw on for repeat purchases, or a vendor program built specifically around the business's product line, which can offer customers more competitive terms than a generic consumer loan would.
Offering financing tends to increase average order size, since customers thinking in monthly payments rather than a single lump sum are often willing to add options or upgrades they'd otherwise skip. It also shortens the sales cycle — a customer who might have gone home to "think about it" or shop competitors can often complete the purchase on the spot once a payment plan is on the table.
It's also a competitive differentiator in categories where financing isn't yet standard. Being the business that makes a large purchase easy, rather than asking a customer to come up with the full amount, often wins the deal outright, especially against competitors who don't offer the same option.
The details matter. Approval speed for the customer should be fast — ideally instant or same-day — or the option won't get used at the point of sale when it matters most. It's worth understanding how quickly your business gets paid once a customer is approved, since some programs fund same-day and others take longer. And it's worth reviewing what happens if a customer defaults — in most vendor financing arrangements, that risk sits with the finance company, not the business, but it's worth confirming before signing on.
Helm & Harbour Capital helps Canadian businesses set up customer financing programs that fit their sales process, comparing finance partners and structuring a program that gets deals closed without adding risk or paperwork to the sales team's day.