Make Every Sale Count
If you’re not using CreditStar, you’re losing profits. Right now, you could be missing the opportunity to generate up to 50% or more additional profit from each and every sale you finance. Surprisingly, most businesses are content to give it away to outside financing.
Think about it: Why do outside financing companies work so hard to finance your customers? Because they make money! And with very little investment involved on their part.
When you close a sale, you’ve already done most of the work; you’ve done the hard grunt work of closing the sale, you’ve filled in the credit application and finance contract. The finance company’s only cost is the credit report. Then they charge you a discount of up to 12% to buy the contract once they approve it. Add the discount to the interest and fees, and you can see the amount of profit that you’re giving away. But let’s take a closer look:
What a single account could earn for your business:
One 12-month contract of $1500.00 at 21% interest with a $20.00 late payment fee could earn you:
| Interest | $315 |
| Late fees | 80 |
| Less: Labor | - 18 |
| Less: Statement expenses | -7 |
| Bottom Line: | $370 additional profit on the original sale |
What a small finance portfolio could earn for your business:
Add 15 individual $1500, 12-month accounts per month for 1 year at 21%, with a $20 late fee:
| Active Accounts at the end of first year: | 180 |
| Outstanding | $186,793 |
| Cash Flow | 110,389 |
| Interest | 20,747 |
| Late fees | 6,435 |
| Save10% Discount to outside Finance | 27,000 |
| Labor | -3,240 |
| Statement Costs including postage | -842 |
| Bottom Line earnings for one year | $47,380 |
Now, calculate your own potential for extra profits:
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Enter the number of accounts you expect to carry, the average dollar value of an account, the interest rate, late fee amount, and standard term length in months. Then click on "calculate profits."
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You’ve earned the profit – and you should keep it. Now, with CreditStar software you can keep that extra hard-earned profit and manage your own finance contracts with surprising ease. Our powerful finance management system puts all the tools you need right in your hands.
CreditStar provides the "Management Opportunity"
How easy and powerful is it? Read on and learn how CreditStar does the work for you.
>> Next: Manage Customer Financing With Ease
