4Salesfinance.com - Secondary Financing

Secondary Financing

Primary lenders reject 40% or more of a merchant’s consumer credit applications. Many merchants regard “secondary sales finance” as taking turndowns from one Primary lender and submitting them to another Primary lender. The desired results simply aren’t there. A true Specialty or Secondary Sales Finance lender buys considerably deeper than a Primary lender.

A Closer Look

Offering special primary financing products such as 90-180 day Same-As-Cash, 90 day or 12 month No Payments, No Interest and No Down Payment, and other variations has become the mainstay in the retail industry. Special financing programs entice consumers to buy and cost you from 1.5% to 12% or more of the retail purchase; all with the aim of increasing sales.

Secondary Sales Finance lenders approve from 30% to 40% of your Primary lender’s turndowns and only charge a discount of 5%-12%. That’s a 10% or more increase in credit sales!

If you are willing to pay a discount for these special Primary financing programs, it would follow that you would also be willing to pay a discount in order to increase credit sales another 10%, or more! It costs you a lot of money to bring customers into your store. Why let them leave empty handed due to marginal credit when you can offer them a secondary sales finance program and save the sale?

Installing a true secondary sales finance program behind your primary lender makes good sense, and will grow your business.