We are entering a period of some significant financial uncertainty. While the stock markets and the economy continue their upward momentum, at the same time there are signs of nervousness about the underpinnings of our country’s infrastructure, financial systems, and the ability of future generations to create and consolidate wealth as past generations did. In this environment, retailers must make everyday decisions that may make or break their businesses – decisions about inventory levels to keep, prices to charge, and credit to offer their customers. This is nerve-wracking stuff. It has to be right.
That last item, how much credit to offer and how to offer it, has become one of the key levers of financial success in the retail trades. There is hard evidence that having the right credit partners and offering the right credit programs can add 50% to the number of transactions and 33% to the amount a consumer will buy.