East Bridge Launches Consumer Finance Program for Online Retailers.

East Bridge Funding (EAST BRIDGE) has launched a new consumer program that allows online retailers and service providers the ability to offer their customers the same finance options, including promotional programs, as brick and mortar stores. This program is available now to businesses nationwide selling products online or over the phone to customers within the United States.

 “Consumers who shop online for major purchases want the same financing options that are available to customers purchasing these products and services from local businesses.  Why should consumer finance programs be exclusive to brick and mortar retailers?” asks John O'Connor, Sales and Marketing Director of East Bridge Funding.  “Online retailers have low overhead and can deliver direct pricing that brick and mortar stores can't compete with, but one advantage that brick and mortar stores have had is the ability to secure effective consumer finance programs.  Many banks and financing companies have not offered these types of programs to businesses selling products and services online because of an increase in assumed risk associated with an online sale. We feel we have put together a program that works for the online retailer but address and controls the added risk in the process.”

John continued by saying “To be successful, the program must be easy to use from both the business side and the customer side. This program has the ability provide instant decisioning on submitted applications and the entire paperwork process is handled electronically, making it fast as well as inexpensive. Businesses can transact with consumers over the phone or the web and execute the needed documents for funding via email.  The process is quick and effective and retailers won't need to make any major changes in their sales process to utilize the program.”

The program is available today to businesses that qualify.  A due diligence process is required for approval to use the program. Companies must be in good financial standing and will be required to submit specific documentation.

US Online Retail Sales Rise 17% In 1Q

Online retail spending increased 17% in the first quarter of this year according to a recent Wall Street Journal article. East Bridge has seen a large increase in the number of online retailers contacting us looking for finance programs for their products or services. Putting together financing programs for online retailers brings new challenges to lending institutions. Online retailers typically have smaller margins than that of brick-and-mortar stores so it is more difficult for them to absorb the costs associated when offering programs to customers. In addition, because there is no face to face interaction with customers, lenders and retailers have to take extra steps to make the transaction simple and easy as well as preventing fraud. East Bridge is working with a number of lending sources on new programs for jewelry financing, furniture, and specialty products.

Another Lender Says Goodbye to the Healthcare Industry

Much like Capital One did a few years ago, Chase is discontinuing its use of their Health Advance program for the elective medical industry. This will have a widespread effect as they were one of the larger players in the industry. One of the industries most effected will be the dental industry. Chase did a lot of dentistry financing. You can read more about their exit on the American Dental Association website.

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