If you’re offering a Buy Now, Pay Later purchase option to your customers, you must be confident they’re in a stable financial position to keep up with repayments. This can be achieved by pulling credit reports.
In this blog, we’ll explain what consumer credit reports are and share three reasons your business should use them to determine every customer’s loan eligibility.
Before we explore why businesses offering Buy Now, Pay Later purchases should pull credit reports, let’s get familiar with exactly what this term means.
Simply put, a consumer credit report is a statement containing an overview of your customer’s credit activity.
This will should include information like:
In an ideal world, you would offer a Buy Now, Pay Later payment option to any customer and be confident they’ll pay it back according to the loan agreement. But you must never just assume a customer is in a stable financial position to maintain such repayments.
However, there’s no way to reveal whether a customer has previously missed payments, been in debt, has a job with a regular salary, or otherwise, without a credit report. That’s why they’re so valuable for businesses selling a product or service with a Buy Now, Pay Later agreement.
They help you spend your time and energy more wisely – with customers you can be certain will repay the money. And at the same time, they easily enable you to weed out those who might never repay and therefore compromise your business.
If a customer is financially unable to pay what they owe, it’s your business that will suffer financially. You’re the one paying for the item on their behalf with no knowledge of when they’ll repay you.
Highlighting the customers with a terrible credit record allows you to focus your attention on those with fantastic credit – those who you can be confident will repay you. This means your overall revenue will increase at a much faster rate and therefore contribute towards your business growth.
Risk management always demands a great deal of time, energy, and money – something many businesses, big and small, simply do not have. Therefore, it makes sense to do everything you can to avoid running into costly risks, such as fraud.
Credit reports give you a crystal clear overview of any potential risks before you establish a Buy Now, Pay Later loan agreement with a customer. So, you’re less likely to get caught up in fraudulent activity and won’t have to deal with consequences that may have a knock-on effect on the rest of your business.
Soft Pull Solutions provides professional credit reports for businesses across the United States of America. We specifically work with those who need to pull a credit report on a consumer in need of financing, such as the Buy Now, Pay Later loans. Therefore, you can gain peace of mind that you’re making the right lending decisions.
Investing in crediting reporting from Soft Pull Solutions also means you:
No matter your industry, Soft Pull Solutions is here to help you understand your customer’s credit, allowing you to lend with complete confidence.
Reach out to us for a sample credit report or to learn more about our services.