What is Merchant Financing?

Merchant financing is a type of funding solution that allows retailers, service providers, and contractors to offer payment options directly to their customers and clients. These funding options allow customers and clients to receive the products and services they need without any obligation to pay upfront or in full.
Instead, consumers and clients are given the flexibility to pay in smaller monthly installments. Typically, merchant financing is offered for big-ticket items and services, such as automotive services and home improvement projects.

How Does Merchant Financing Work?

If you want to start offering POS financing, the process works as follows:

• The customer or client selects the goods or services they want to purchase using merchant financing.
• The customer or client then completes and submits Avastar’s financing request form. This can be done with the help of the merchant in-store or on the Avastar app.
• The applicant’s request form is routed to Avastar’s network of lenders. Lenders will review the information provided to determine whether the applicant qualifies for financing.
• If the applicant is approved, the lender’s information and financing options will be displayed to the customer or client.
• The borrower will select a financing option and work with the lender directly to make repayments.
• The funds will be disbursed to the merchant, service provider, or contractor in full within two to three business days.

How Much Does Merchant Financing Cost?

AvaStar is a cost effective way to grow your business utilizing payment options. Charging a small monthly platform fee in addition to success fees that are competitive with credit. However, we receive payment if we successfully connect your customers or clients with a lender in our network. These fees vary depending on the industry and lending product. Prospective merchants can inquire about fees by speaking with a team member.

What are the Benefits of Consumer Financing for Merchants?

Consumer financing for merchants is a win-win for your business and clients. Here are some of the ways your customers and clients benefit:

• Avastar’s multi-lender network may increase the likelihood that your clients and customers will find financing. This is because some lenders in our network may be willing to work with damaged credit types.
• Your clients and customers won’t have to forego large purchases or necessary treatments because of a lack of financing. Instead, they may find flexible repayment options.
• Avastar’s request process is quick and hassle-free. The online form can be completed in-store or online. Results are often displayed in a few minutes.

Similarly, here are the benefits to merchants, service providers, and contractors:

• Merchants that cater to their customers’ and clients’ financial needs experience higher customer satisfaction rates.
• Similarly, offering flexible financing options can improve customer acquisition efforts and place you ahead of the competition. Consumers are more likely to seek products and services from merchants that provide them with budget-friendly payment options.
• Rather than forego purchases, merchant financing can encourage consumers to make large-sum purchases or add-ons. In turn, this increases your business’s revenue, sales, and cash flow.

What Information Does the Consumer Need to Provide to Request POS Financing?

It only takes a few minutes to fill out Avastar’s financing request form. It requires some personal, employment, and financial information from the applicant.

Do Merchants Benefit from the Interest Rate of the Loan?

A lower interest rate may result in a higher likelihood of making a sale. However, neither the merchant nor Avastar can control interest rates. Avastar is not a lender. Instead, we work with a network of lenders.
While we cannot guarantee a low-interest rate, many of our clients see higher acceptance rates thanks to the size of our lender network.

Does Avastar Work with International Merchants?

Unfortunately, Avastar does not work with international merchants at this time. We only work with companies operating within the U.S.

Is Avastar Easy to Use?

Our system is straightforward for both the merchant and client. Customers can request POS financing in one of two ways.

First, the merchant can use Avastar’s portal to start a funding request for the consumer or client. The applicant offers personal and financial information and is then sent a link to confirm and submit the request.
Conversely, the applicant can fill out the entire financing request through the app. During the request process, the client or consumer will select the merchant, service provider, or contractor.

How Can Merchants Access Avastar?

Merchants can integrate Avastar’s platform by speaking with a member of our team. We offer onboarding with a simple setup process.

What Information Does the System Dashboard Provide to Merchants?

Merchants, service providers, and contractors receive a report on all the requests placed through Avastar. They can filter by pending, pre-approved, and rejected requests. Additionally, they can also access reports based on team members and locations.

Does the System Need Maintenance or Updates Periodically?

Avastar regularly updates its dashboard, reporting tools, and lender network.

How Long Does the Average Loan Request Take?

Typically, the loan request process takes a few minutes to complete. Similarly, most applicants receive on-screen results in a few minutes.