Have you needed to finance a larger purchase lately, using a local financial services provider? Perhaps you are preparing to install a new fence at your home and need to fund the project. Or, you are at your local electronics store with the compelling need to buy a new home audio system and want to finance it at the point of sale (POS).
Similar consumer transactions occur millions of times a day nationwide, in a broad-based market for POS lending virtually untapped by credit unions. How can credit unions effectively pursue this promising income stream? What can credit unions do to connect with local merchants?
There is quantifiable value for everyone concerned in POS business transactions. Consumers conveniently lock in financing exactly when they need it, through a local lender who offers other attractive services they may use in the future. Merchants benefit from the competitive advantage of offering fast, seamless financing to close their sales. Credit unions deepen mutually beneficial relationships with their merchant business customers, while expanding their loan portfolio. They also expand their membership base, cross-sell additional products to new audiences, and take on a stronger role in their local economies. It’s a “win” for everyone, as the saying goes.
So, how does your credit union position itself to offer competitive POS lending? To pursue this business, you will need to provide merchants with these strategic capabilities:
Instantaneous 24-hour access and approval
Web-based, secure access and easy application processes
The 24/7 nature of consumer lending requires merchants to offer instantaneous access and approval for loans at all hours. The transaction software also needs to be web-based, allowing lenders and merchants to input, process, approve and access loan applications securely through any web browser – making it faster and more convenient to process loans with minimal technology investment. To cast the widest possible net, the program must support many kinds of merchant, retailer and service provider loans, including open-end loans, closed-end loans and new credit card accounts.
Automating the lending process is required when offering a merchant lending program that must deliver automatic decisions and approvals, backed by full capabilities to manage and report on the program.
As you prepare to develop your 2009 loan strategies, discover how you can tap into this important lending channel to finance member loans for appliances, furniture, lifestyle loans, elective surgery, home improvements and many more.
Visit www.TeresSolutions.com to find out more about automated Loan Origination Software and our new Teres Merchant Lending module. Contact us at (866) 518-4200 x1.