Why Point-of-Sale Financing Is Now Crucial for Construction and Skilled Trades

In a time when competition in the construction and skilled trades sectors is becoming increasingly fierce, innovative financing models such as POS financing (Point of Sale, also referred to as customer financing or point-of-sale financing) can make all the difference. But what exactly is POS financing, and why should companies in these industries start using it now?

What is POS / point-of-sale financing?

POS financing allows customers to pay in installments directly at the point of sale. A third-party provider takes on the risk, so the company itself does not have to worry about payment defaults. This method is already well established in many industries and offers significant advantages for both businesses and their customers.

Why is this financing important?

1. Competitive pressure from large corporations
2. Market leaders like Enpal (solar systems) and 1komma5° (energy solutions) strategically use POS financing. They rely on attractive installment plans to secure large contracts and build long-term customer loyalty. In contrast, small and medium-sized businesses risk losing market share if they don’t offer flexible payment options.
3. Changes in customer behavior
4. Studies show that 68% of customers make decisions more quickly when installment options are available – especially for high-cost projects such as construction or renovation. Additionally, the average order value increases by up to 30% when financing is offered.

Three reasons why you should act now

1. Close more deals: Instalment payments make it easier to commit to larger projects or expenses, such as energy-efficient home renovations. Higher conversion rates and larger project volumes are the result.
2. Secure liquidity: Companies can be confident that funds are in place and are paid much faster on average. The risk of payment is borne by the third-party provider.
3. Reach new customer groups: Even households with limited budgets can afford larger projects. Customer diversification increases reach and revenue.

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How can construction and skilled trades businesses benefit?

Introducing POS financing is no longer a luxury – it’s a necessity for construction and trades businesses that want to remain competitive. With the right strategy, you can not only boost your conversion rates but also tap into new markets and protect your liquidity. With Nemi, you can easily offer this type of financing to your customers. Feel free to contact us.

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