Consumer borrowing continues to drop — but it doesn’t have to mean business should grind to a halt. 

Here are five strategies top sales organizations are using to turn that negative trend into a major boost in business:

1. Set up in-house financing for loyal buyers: Given the fallout from the recession, most buyers are incredibly leery of borrowing from major financial institutions at this point. One of the biggest reasons — all the stipulations and fine print banks attach to their finance contracts. Alleviate buyers’ concerns by offering simple finance options that encourage existing customers to increase the level and frequency of their purchases. Bonus: Once a company sets up in-house financing, it gets to reap the benefits of the interest attached to buyers’ purchases.
2. Use guarantees as a selling point: A lot of today’s prospects are in a position where they need to justify every new purchase to other decision makers before moving forward. The more secure prospects feel, the easier it is for them to convey why the investment is a safe one. Most companies offer guarantees and warranties, but very few sales organizations actually focus on them as major selling points. Reinforce the value of guarantees, and consider whether there are additional assurances you can offer that will ease the commitment of borrowing or buying on credit.
3. Provide rewards for paying off purchases quickly: Buyer rewards boost sales and loyalty. In a down economy, they can also be used to encourage prospects to pay off their investment ASAP. Some companies boost their pay-up rates by offering buyers a discount on future purchases or membership into a rewards club in exchange for paying off their debts quickly. It not only ensures the company collects, it also helps lock buyers in as long-time customers by encouraging them to buy again.
4. Offer volume discounts and package deals: Bundling products and services is a proven way to boost average income per sale. Salespeople who can demonstrate why, how and how much volume discounts or package deals will save prospects are in a much better position to boost their average income per order. Recast these purchases as a way prospects can save money and increase profits long term. Then demonstrate how the prospects’ return on investment justifies any necessary financing.
5. Promote your brand as the buyer-friendly alternative to borrowing: In a marketplace where customers are so reluctant to finance purchases, companies that don’t offer financing may actually be able to tout that as a great selling point. Recast the lack of financing as your company’s willingness to provide buyers with affordable payment options (e.g., layaway, installments, buy now, pay later, etc.) that won’t sink them into revolving debt. Become an advocate for your buyers, and they will repay you with repeat business.

Can you think of any other strategies we’ve missed here? What’s working at your company? Let us know in the Comments Box below.

Tags: borrowing, consumers, credit, economy, financing, Recession