In-house financing is when the company selling the POS to you also finances the system within the company. Outside financing is when either 1) the company selling you the POS gets an outside financial institution to get you financed or 2) when the customers obtains a loan from a bank to get the system. Sintel Systems utilizes outside financing for customers who desire financing. We don’t make any money from your financing or take any “kick backs.”
Many customers do not realize the difference between the two and its potential implications such decision may make. There is an inherent conflict of interest if the company selling you the POS also finances it internally. There are three (3) main reasons you should keep your point of sale and it source of financing separate.
Three reasons to keep POS and it source of financing separate:
- HIGH COST: The focus of your POS company should be on providing you the best point of sale and service, not making money off your financing. When you use in house financing, the focus shifts. They first push the customer toward financing and do anything to get you financed even if it is not in your best interest. One common way is high interest merchant account loans. Stay away from this.
- SERVICE: We all run our businesses with the intention of succeeding; however, unforeseen circumstances can lead to tough times. Sometimes you miss payments as you try to focus limited resources in difficult times. When you use in-house financing, they cut your service when you miss payments. The goal of your POS provider should be to help you out of tough times not make the hole wider.
- YOUR FINANCES: Your financing company should not have access to all your business transactions. That is too much information for such companies to have.
So what’s happened recently is that banks and credit card companies front as point of sale providers. The advise is to make sure that you know who you are dealing with a POS company or a bank. Keep them separate. This should be part of your business plan and strategy.
If you like more information on financing, contact Sintel Systems at 855-CCTV-SALES. If you like to proceed with a financing application, please see here.