What Is Integrated Financing for Furniture Retail Software?
When a retailer offers third-party financing, they partner with lending institutions to fund customers’ orders, while the customers complete a payment plan with the lender. Some retailers choose to offer in-house financing options where they hold their own paper providing credit through installment contracts or revolving branded credit cards. By integrating these programs into your Point of Sale and Accounting solutions, you can effectively manage your customers’ lines of credit, accounts receivable, and collections.
Integrated Third-Party Financing
Partnering with Third-Party financing lenders helps your customers pay for the merchandise they want while removing the liability of managing credit within your retail business. Once your customer is approved for third-party financing, the chosen provider will handle their payment plans directly. STORIS’ integrated third-party financing solution manages all touch points with finance lenders including application, approval, authorization, settlement, and account reconciliation from the STORIS system.
Third-Party Finance Queue
With the Finance Queue, a single credit application can be submitted against the retailer’s available options for primary, secondary, and tertiary lenders with the customer’s approval. This fast-tracks the application process while getting customers more successful approvals and higher lines of credit.
Consumer Credit Application
Consumer Credit Application integrates the consumer finance application process for either in-house or third-party financing by collecting customer information and transmitting it directly to certified credit services or lenders. This provides the retailer with settlement and account reconciliation to STORIS Accounting & GL.
Customer Facing Application
To promote security and privacy when collecting sensitive customer data, the Customer Facing Application (CFA) is the ideal solution. Formerly, sensitive customer information was dictated to a retail associate, which ran the risk of being both insecure and uncomfortable. Now customers enter their own data into a secure online application that can be filled out in a retailer’s showroom. CFA delivers a positive customer credit application experience for all parties and can be used along with the Finance Queue for added convenience.
Versatile Credit via STORIS’ Financing APIs
Retailers can also chose to integrate the self-service application and waterfall process to a third-party via STORIS’ Financing APIs. The integration of Versatile Credit to STORIS’ ERP provides retailers with the tools needed to drive success in their financing programs. Versatile’s consumer finance technology empowers retailers to provide seamless, self-service financing application experiences on an array of devices. This integration to STORIS enables retailers to offer cascading mobile apply with Versatile’s patented “Snap to Apply” technology, allowing customers to apply for financing from the comfort of their own mobile device.
Advanced Receivables for In-House Financing
With In-House financing, the retailer acts as the lender and enables their customers to make monthly payments directly to their retail operation. STORIS’ In-House financing solution allows for the automated processing and cycling of customer payments while adhering to the compliance associated with the Truth in Lending Act (TILA). Easily build and maintain your own in-house financing plans, manage payment schedules and interest rates, and track promotions.
In-House Installment Receivables
Installment Financing is a one-time loan agreement that is created and maintained by your retail business directly with your customer. This includes managing contract terms and conditions, amortization schedules, activation and expiration dates, and payment periods. Further, you can offer insurance as a means for your customers to protect their loans. With STORIS’ Installment Receivables, you can activate, delete, cancel and reinstate plans as well as offer refinancing, extend contracts, defer payments, and adjust due dates all from one comprehensive screen.
In-House Revolving Receivables
Revolving financing enables you to offer renewable lines of credit on a monthly basis, such as branded credit cards. Automatically cycle customer payments based on the specific requirements of your business. Choose from interest rate options using credit scores. Additionally, limit the ability to offer payment plans and promotions to corporate, franchise, or specific store locations.
The Collections module enables retailers to manage customer debts, track account history, assign “Promise to Pay” & “Call Backs”, and create collection letters. Assign late fees and utilize the Repossession Tool to calculate inventory depreciation. The Collections module can be used by your agents to prioritize daily calls for customers with past due balances and efficiently apply payments to their accounts.
STORIS’ integrated furniture accounting software automates accounting and financial tasks across Accounts Receivable, Accounts Payable, and General Ledger. Direct integration makes managing your company’s financials more precise.
The Future of Furniture Financing
Retailers can help make the shopping journey less stressful and more satisfying using technologies to streamline the financing process from application through payment management. Furniture financing empowers consumers to buy the specific products they want, while finding a payment plan that meets their needs. In our guide, discover 4 financing technologies for a seamless credit offering.Read More Here