Wells Fargo V.S. GE Financing
I have been searching for a financing company—a company that offers good rates to me so that I may pass them on to my customers. I love to offer my customers 90 days same as cash, especially during the holidays when money is tight due to all the gift-giving. Another great thing about offering financing is being able to have a credit card with my own store’s name on it. The card encourages repeat purchases, and it’s a great way to introduce card-related promotions to enhance customer loyalty.
I started calling around various Private-Label Credit Card companies such as Wells Fargo, GE Money, and Citifinancial Retail Services. My most important concerns were:
- How long will the application process take?
- Most lenders sent me an email form or made me answer some questions related to my business and I was approved right away.
- Do I process applications online? Is it a handheld machine I type everything into?
- Each company varied when it came to this. Wells Fargo has you type everything online. GE sends each store a machine the size of your palm, and is not wireless.
- How quickly will I receive funds in my bank account?
- Most said the same—24 to 48 hours.
- Does the company offer any special deferred interest rates and how much am I paying on each sale to be able to extend these offers to my customers? This is where it got interesting:
Terms Wells Fargo GE
90 days Free 3%
6 months 3% 5.9%
12 months 6.25% 8.9%
18 months 12.35% 13.5%
I couldn’t believe the rates for Wells Fargo were much less…and were for the no interest option—meaning if the customer paid by the deferred date they would not be charged interest. In addition, Wells Fargo has an option for up to 36 months and GE does not.
Do you offer a financing plan? Do you find 90 days same as cash a way to gain more clientele?
Hedda Schupak commented:
Great info, Shanu! Also wonder if you'll get charged a transaction
fee on returns.
