CONYERS, Ga., Aug. 25, 2021 /PRNewswire/ — As of this year, Novae LLC has unveiled a new consumer financing option: Novae Financing. Also known as Buy Now, Pay Later, consumer financing options allow businesses to improve sales while helping consumers to access the products and services they need. Novae Financing is designed to fill niche industries like healthcare, home improvement, coaching and consulting, and types of retail outlets not commonly served by industry giants like Klarna.
"These services shouldn’t be restricted to only customers who can pay a lot up front," Novae CEO Reco McCambry says, explaining his philosophy behind allowing customers with relatively low credit scores to receive financing for purchases up to $35,000. "If someone can improve their health and subsequently earn more money, improve a house before selling it at a profit, or get a promotion with the help of a career coach, everyone wins."
Like all BNPL services, Novae Financing is risk-free for the businesses who choose to use it: the customers’ installment payments are guaranteed by Novae’s lending partners, so there’s no danger of missed payments to retailers. There is, however, the promise of more and larger sales. In addition, unlike most "financing programs" Novae’s technology pre-approves the creditworthy customer in seconds after a two minute online application and can deliver a full approval within minutes, sending the amount of the sale to the business owner’s bank account within 2-3 business days.
The transaction is paperless and there is no need for the customer to speak to anyone or endure a long waiting period. Customers with credit scores as low as 550 can be approved for financing, depending on the lender, making these products more accessible to customers that may have been affected by the pandemic. This increases sales for business owners that would have not otherwise sold to these consumers.
BNPL giant Klarna released a report earlier this year showing that when businesses add a Buy Now, Pay Later option to their online store, customers are 35% more likely to make a purchase and spend on average 45% more. The lower up-front price encourages customers to make purchases now that they might otherwise save for later—which every online retailer knows may spell a death knell for the sale. When customers feel compelled to wait until they have more money to pay up-front, they are much more likely to forget the purchase entirely or end up buying from a competitor.
That’s another reason Novae Chief Marketing Officer, Haziq Ali wanted to offer this service to these underserved industries. "The higher price points involved in these industries have meant that BNPL servicers have been slow to open up to these providers," he explains. "Online retailers are easy and predictable to work with, but these other services are sometimes thought of as too complicated, too big, or too small for BNPL. We don’t agree with that. We think there’s great potential there."
And that’s good news for customers and retailers alike. Customers can expect easier access to BNPL financing, while interested retailers can feel good about boosting their sales while making their products more accessible to those who may be suffering temporary financial setbacks from the COVID-19 pandemic.
"Now of all times," McCambry says, "we want to help people get back on their feet by investing in their health, homes, careers, and businesses. And, of course, this helps businesses too. If you can boost your sales volume during this tough time by offering customers a financing option that requires no up-front payment, you’ll have more loyal customers for life."
SOURCE Novae LLC