You’ve been hearing a lot lately about new waterfall financing programs that have been made available to Nationwide Marketing Group Members. Waterfall sounds like a fun and exciting term, but we wanted to quickly help you understand what these programs help you accomplish as an Independent retailer, and what kind of impact they can have on your business.
WHAT IS A WATERFALL FINANCING PROGRAM?
Waterfall financing is a method of consumer lending that allows the shopper – your customer – to submit one credit application that determines the appropriate financing option based on their current status. So, rather than having to learn they’ve been declined by a primary lender only to then have to re-apply, a waterfall program streamlines that process for you and your customer.
HOW DO WATERFALL PROGRAMS BENEFIT YOUR BUSINESS?
Based on data from Versatile Credit, when retailers add a waterfall financing option, they can see:
- 20 percent increase, or more, in application volume
- 30 percent increase, or more, in average ticket sales
- 40 percent improvement, or more, in approval rate
Year-to-date, retailers who utilize a full waterfall program see, on average, a 48 percent increase in applicant approvals compared to retailers who only utilize a prime financing option.
Interested in learning more about waterfall financing options? Reach out to Megann McDaniel, director of financial services for Nationwide Marketing Group, at megann.mcdaniel@nationwidegroup.org.
