Consumer Financing FAQ’s

Fast Consumer Financing – Easy as 1, 2, 3

1. How much does it cost my business to get started offering Next-Financing?

We understand the challenges that small to medium-sized business owners face on a daily basis and the last thing we want is to be another monthly expense to your business!

We have a $0 set-up fee to build out your custom web application & back office portal – YES, we don’t charge anything to set up your new account. There are no monthly fees, integration fees, or recurring annual fees for a business to sign-up and utilize the platform. Whether you utilize the platform once a year or a hundred times a day – you will NEVER be charged a monthly f

Instead, we built our consumer financing platform to be performance-based. The only time your business pays a fee to Next-Financing is when your customer successfully obtains financing and completes the purchase with your business – the only time we get paid is when YOU get paid!

Merchants pay a flat percentage fee of the purchase price, similar to a credit card processing fee.

2. How do my customers apply for financing?

When your business is set up on our consumer financing platform you will receive a User/Merchant ID i.e. Joe’s Electronics, which is used to identify and associate your customers to your account. Your User ID is also utilized in your custom application URL, which you receive in your New Account Welcome Letter – once your new consumer financing account has been set up.

Multiple ways to apply.

Text Message – Your customers can text your User/Merchant ID to our application hotline to see what financing options they qualify for from the privacy of their own device.
Your Website – You can display a widget on your website and hyperlink to your custom URL. If you need any assistance or you’ve forgotten or lost your custom application URL, please email Sales@Next-Financing.com.
Email – You can email or text your custom application URL directly to clients or add it to your weekly email marketing blasts.

3. Is my customer guaranteed to be approved?

Unfortunately, no. The approval rate for Next-Financing is significantly higher than traditional financing options but in some cases, individuals may not qualify with one of our lending partners. We are continually evaluating lenders with new and innovative technology to bring onto our network in order to provide all customers with a financing option. On average, 80%+ of all applicants get approved. Typically, the main reasons an applicant gets declined are due to an open BK, no income, or extensive tax liens.

4. How long will it take for my business to receive funds?

Next-Financing utilizes the ACH network (automated clearing house) to transfer the funds directly to your business account. Depending on your financial institution it typically takes 24-48 hours to receive funds.

5. What documents are required to get started?

Prior to becoming a merchant on our consumer financing platform, a merchant is required to go through a business verification process. Sometimes the merchant approval process may require further verification due to the federal legal requirements that went into effect in order to comply with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) rule on customer due diligence.

As a part of this process, the following business documents are required:

Color Copy of Driver’s License
Voided Check
Proof of Ownership
Copy of Return/Cancellation/Warranty Policy -or- Terms & Conditions Agreement

6. How long does it take to set up my account & what’s included?

Once we receive all required documents (listed in question #5), we typically have all new accounts set up within 3 to 5 business days. Included in the set-up of your new account, we build a custom web application for your business – this can be branded with your logo. We then attach your web application to your back office portal, which is used for tracking, reporting, analytics, marketing, etc. Your back office portal gives you real-time access to how your consumer financing program is working in your business. Training and ongoing platform upgrades are also included.

Customer / Consumer FAQ’s:

1. How do I apply for consumer financing?

There are multiple ways to apply for financing for your purchase through Next-Financing.

Text Message – Text the User/Merchant ID* of the business you are looking to make a purchase from to the application hotline phone number provided to you by the merchant/business.

Web Application – Apply through the website of the business where you want to make a purchase.

*Each business on the Next-Financing platform is assigned a unique User/Merchant ID i.e Joe’s Electronics, which is used to associate a customer financing request to the correct business.

2. Will submitting an application/credit profile affect my credit score?

No. Submitting an application/credit profile with Next-Financing will NOT affect your credit score. When you complete and submit your application, our platform will perform a soft credit inquiry to produce instant consumer financing options for you to review.

3. What is the minimum & maximum amount that can be financed?

Our current lender network will finance a minimum amount of $500 up to a maximum amount of $50,000*.

*Our team is always evaluating new lending partners to add to the platform, check back for updates!

4. What is the criteria to qualify for consumer financing?

Lenders will look at a variety of data points when making a decision about whether to extend you credit.

Chief among these are your credit score, payment history, employment status, and your debt-to-income ratio. For your credit history, lenders may look at the length of your credit history, the number of delinquencies, charge-offs or bankruptcies in recent years, and the number of credit inquiries you’ve had over the last year. Many lenders will want to see a credit history of at least one to three years with no bankruptcies within the past one or two years.

Another factor lenders consider is your employment status and history. Some lenders will require that you provide proof of income, whether through full- or part-time employment or self-employment. Other lenders may also require a minimum personal or household income to apply, with minimums frequently between $20,000 to $40,000 per year.

Debt-to-income (DTI) ratio is another important measure that lenders will use to evaluate applicants. Your debt-to-income ratio is the amount of debt (including mortgage or rent payments) you carry relative to your pre-tax monthly income. If your DTI ratio is 40%, this means that your monthly debt payments account for 40% of your pre-tax monthly pay. In general, lenders will want to see applicants with DTI ratios under 50%. A DTI ratio of 50% or more is typically a bad sign to lenders, as it means you may have trouble paying back your debts.

The length and amount of the loan will also affect your interest rate. Typically, longer terms and higher loan amounts will mean higher APRs.

5. How long does the approval process take?

Once you’ve successfully completed and submitted your application – offers will be displayed instantly*, if pre-qualified.

Depending on the applicant’s credit score, amount requested, and the lender – additional documentation may be required to finalize your financing and complete your purchase.

*Please note that sometimes due to heavy application volume it may take up to 30 seconds for offers to be displayed.

6. What are the typical interest rates offered?

Your credit score will be one of the largest factors in determining the annual percentage rate (APR) on a personal loan. In general, the higher your credit score, the lower the interest rate and APR. The APR ranges from 5.99% to 35.99%. Individuals with excellent credit, which is defined as any credit score between 720 and 850, should expect to find rates around 6% to 12%.

Lenders may also consider other factors when evaluating your application, such as your income, work history, and existing debt.

For income and debt requirements, lenders will usually want to see proof that you have a steady and stable income (and sometimes a minimum income) as well as a reasonable debt-to-income ratio, which is anything under 40% to 45%.