Customer financing solutions are simply a way for customers to spread their payments when they buy goods or services. While you may associate customer finance more immediately with retailers, it has direct benefits in the world of dental and medical services, which we investigate here
What is customer financing?
Customer financing is the term used for offering customers the option of payment plans, allowing them to spread the cost of a purchase over a period of time in equal payments. It gives the customer the opportunity to incorporate the payments into their regular budget and it makes the sale easier for the goods or service provider.
It’s nothing new, you probably remember your mum paying for Christmas presents from the catalogue over 20 weeks, and it’s long been available in the form of credit agreements from retailers of big-ticket items, such as furniture and cars. And now it’s being used by dentists and medical clinics in a simple to administer and extremely flexible format from Chrysalis Finance.
But why would you need to offer it, what exactly should you offer, and how does it all work?
Why offer customer financing solutions?
It’s clear why your patients might welcome it. Dental treatments and private medical treatments can be – just like cars and furniture – big-ticket items. What’s more, they are often not budgeted for. Being able to pay for them monthly can be a great weight off people’s minds, and it allows them to get treatment immediately.
But what about the benefits to you? Here are just a few of the main ones:
- It can increase your sales: If a patient knows they can spread the cost of a treatment, you have swept away their biggest objection: that they can’t, or don’t want to, pay in one lump sum. This makes them more likely to go ahead with the treatment and it means your profits increase. Some of our partners have seen their profits increase by as much as 60% simply by offering payment plans.
- It can increase the value of treatments: If you can spread the payments, you are more likely to opt for the full works rather than the budget option. Our research shows that the average treatment cost with a payment plan is 15% higher than without.
- It improves your cashflow: This is possibly the most important benefit of all. You receive full payment for the treatment as soon as it’s agreed. The credit agreement is between Chrysalis and the patient. You maintain a healthy cash flow and you are free from the risks associated with non-payment.
- It improves customer loyalty: Firstly, your patients will not be poached by competitors who offer payment plans when you don’t. But also, there’s a connection that continues after treatment and it makes it much more likely that your patients will stay with you.
- It can attract new customers: The ability to pay monthly is a great benefit for many people; you just need to let them know you are providing it. We can help you to market your customer financing solution, providing marketing copy for your website, point of sale materials for your clinic and advice on emails and ad solutions, so that you can attract new customers.
What customer financing solutions to offer
The best solution is to offer a range of payment options. If you are not already directly authorised, many finance providers only allow you to offer interest-free finance over a maximum period of 10 months. This is because they do not offer the range of solutions Chrysalis do and therefore have a very limited scope as to what they can offer.
At Chrysalis Finance, we are fully authorised by the FCA and we can make you an appointed representative of Chrysalis. This saves you the complexities and costs of being licensed yourself but it gives you the freedom to offer the tailored payment plans that your different patients need. For some, this could be a 3-year, interest-bearing plan to split the costs into smaller payments, while for others it could be a 6-month interest-free plan. The competitive advantage it gives to you is that you have the flexibility to give them exactly the payment plan that works for them, rather than a blunt, one-size-fits-all solution.
How customer financing works with Chrysalis Finance
Put simply: you offer the customer a payment plan for their treatment. They apply, either at the clinic with your help, or via an email link you can send them. The application is assessed and a decision is given, usually within 24 hours. We pay you in full and the patient pays us in monthly instalments.
And it really is that simple. The application is easy to complete, with a few key questions to be answered. The finance agreement is between the lender and the patient. Once we pay you, you can leave the rest to us.
Finally, we are specialists. As the only finance providers who work exclusively in the medical and dental sectors, we know your world and we develop our systems and customer support entirely around you. This means you can trust us to get it right and you can be confident that we will always listen to you and continue to develop our solutions around your needs.
Ready to get on board with customer financing?
Get in touch with us today for a friendly chat and a free demo of our customer financing solution. It’s likely to be one of the best business decisions you’ll ever make.
Find out more at chrysalisfinance.co.uk/partner-with-us/