Installment payments are a form of payment where buyers pay in smaller equal payments over a period of time rather than upfront in a single lump sum. These payments are sometimes accompanied by an additional charge such as an interest rate or service fee.
How installments strengthen b2b customer loyalty
B2B merchants that offer an installment option make it more affordable and easier for customers to buy what they need when they need it without worrying about the financial burden of paying upfront. This gives much-needed financial relief to buyers, especially during uncertain economic conditions where cash flow is strained.
Installments bring convenience and flexibility to the purchasing process, resulting in a positive experience that boosts customer satisfaction, which leads to greater customer loyalty and retention. As an added advantage, installment payments also empower customers to purchase more than they originally planned, increasing the value of the sale for the merchant.
While offering installments provides a great way to increase customer loyalty and retention, some risks are involved. The most common risk is that customers may default on their payments, leaving the merchant out of pocket. Customers may also be late in making their payments, which can lead to significant delays in the merchant receiving the total amount owed.
In addition, managing and tracking multiple installment payment plans can be complex, especially for growing merchants with numerous customers. This can lead to confusion and potential errors.
Mondu’s no risk installment payments
Here at Mondu, we recognise the critical importance of payments in strengthening customer loyalty and building relationships. Our installment payment solution empowers your customers to purchase more with confidence by letting them pay over 3, 6 or 12 monthly installments. You get paid upfront with no risk, while your customers can better manage their cash flow by paying a fixed amount each month for up to a year.
Mondu conducts online credit checks in real-time to enable instant approval. We also take on default risk and handle payment collection, relieving you of the risks and hassles of offering installment payments.
Interested in learning more and get you b2b customer loyalty up? Get in touch today.