Whether you’re an ecommerce entrepreneur or an avid shopper, you should definitely be looking into Bread Finance. This online financing platform allows consumers to buy things like furniture, jewelry, technology, and other goods by spreading the payment out over a span of months. For instance, you could buy a piece of furniture worth $1,200 and, instead of paying for it all upfront, you can pay $50 over the next 24 months.
Bread Finance works with participating retailers to help their customers pay with loans over a period of time; however, Bread Finance is not itself a lender. When you sign up for financing with Bread Finance, you’re actually getting a short-term loan from Cross River Bank. And, of course, like any other loan, you’ll be charged interest.
While this is not a new concept by any means (many companies in the furniture, jewelry, and technology space offer financing options), Bread Finance makes it easy for consumers to use a wide variety of modern payment methods and for online merchants to integrate the platform into their ecommerce site.
The Buyer Side
When you purchase an item from a retailer that is partnered with Bread Finance, you get the option to utilize the Bread Finance upon checkout. You’ll instantly receive a variety of repayment options, which might spread your repayments over 12, 24, or 36 months, for instance. Once you choose your repayment plan and check out, the item will be immediately sent to you. You buy now and pay later.
The interest rate that you’re charged on your short-term financing will depend on how long your repayment period is, the cost of the item, and your current credit score. Paying with Bread Finance gives you the advantage of knowing exactly how much you need to pay each month, and you can even automate payments. The interest rates offered by Bread Finance are typically very competitive; however, if you were to pay for the same item using a credit card, it would probably carry a lower interest rate.
Bread Finance is good for people who don’t want to pay for an item upfront and aren’t very good at managing the balance on their credit card. Setting up automatic payments will help you make sure that you pay off the item in a timely manner without having to manually make payments from your credit card account. If you can remember to make monthly payments on your credit card account, it’s probably better to buy that new couch with a credit card instead of using Bread Finance.
The Seller Side
Integrating the Bread Finance platform into your ecommerce business can offer some serious advantages. They’ve been proven to increase sales and average order value among the businesses that they’ve already partnered with, which makes sense. If consumers are given the option to finance their purchase over a span of months right at checkout, they’re going to be more likely to purchase more items and more valuable items.
Bread Finance does not allow consumers to use credit cards; however, they are integrated with a wide variety of modern payment options that makes it easy for consumers to sign up. Bread Finance also integrates seamlessly with a wide variety of ecommerce platforms like Shopify, Oracle NetSuite, BigCommerce, Magento, WooCommerce, Kibo, Salesforce Commerce Cloud, Volusion, and Miva. This makes it extremely easy to add to your ecommerce site and customize however you want.
If you’re worried about allowing your customers to use financing and then never recovering those debts, don’t be. Bread Finance takes on 100% of the risk involved with the loan. You get paid for your merchandise immediately once the purchase is made.