Consumer Finance Is The Lending Process Between The Company And Consumer Business Essay

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INTRODUCTION

Consumer s finance deals with the lending process between the company and the consumer. Customers are the mainly believes that good service and quality of the service are the main concern in this regard.

When initiating a new business consumers are the main focus and they are decisive for the fate of any business. The proper management in terms of quality and service will make a good relationship between the consumer and the lender in lending process in short term planning. It is evident then that the consumers are the main and prime concern for the lenders to handle or run a fruitful business in long term planning.

Consumer financing not only fulfill the needs of an individual but also helpful for the organizations/banks to run their business at a good terms. It is a easy and powerful tool for the consumers as well as the organizations to build a relationship among the organization as well as between the consumers and the organization.

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Companies need to appreciation how consumer service is connected to the people they make use of. Customers are mainly to associate the idea of service with the method they are treated by human resources.

The consumer finance covers the following areas

Financing that is done for meeting the personal, family or household needs.

financing done for meeting the personal needs that can be of buying a car, shop, establishing a business, shopping and buying a house etc

AREAS OF CONSUMER FINANCING

The consumers financing is utilized in different areas of the social and business matters and it is utilize to enhance the social status and business of the organization and individual.

The different factors can also effect this type of financing to the organization as well as an individual.

Personal loans:

Personal loans include the loans provided to individuals for the payment of goods, services and expenses.

Car/Auto loans:

Car loans make able a person to purchase a car or a vehical to enhance his business or improve his social status. Different banks and companies allow to get car / auto loans which help a person to buy a car taking less burden.

Housing Finance:

House of own is a dream for any person. One of the attractive mode of consumer financing is house loans which enables us to buy home at our own choice at once by taking loan from a bank or a company.

Credit Cards:

Shopping now a days has become advanced and you cant take a lot of cash along with you at every place. You can power up your wallet by taking credit cards and debit cards which enables you to shop and pay your bills at every place.

Customer's relationship management

The customer's relationship management is one of the important and vital factors for any organization dealing in consumer financing.

The customer relationship management is one of the important factors. The relationship with the consumers is vital in establishing any business it helps to make the business at high notes. The customer's relationship management is done by the linked database with the consumers' data.

The main and appealing viewpoint is to consider customer relationship management only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made.

CONSUMER RELATIONSHIP MANAGEMENT relies on customer data to create customer loyalty. The concept of CONSUMER RELATIONSHIP MANAGEMENT was again the result of an evolution born out of necessity. When companies understood the need to obtain and maintain customer data, which was exhaustive and scattered in nature and were desperately looking for a tool that could compile, preserve use the data in a way they want, technology came to the rescue with exclusive methods called data mining, data warehousing and thus data base management techniques were born. Technology is mechanistic and didn't know what is required and what is not. A managerial tool was needed to perform the director's role in order to decide the path and processes. The consumer financing is powerful tools for any individual.

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Consumer financing is very useful which can be depicted by having eye on the following points

The consumer financing is a tool for any organization to attract its employee

It is also very effective in business to attract the consumers towards the banks or any organization offering consumers financing

It also a key prospect for any organization in having the financing used in different field as an investment.

It is also used to build a good society in terms o0f filling needs of a consumers which have low power of purchasing the different things which are enabled by the consumer financing..

Process

The process of the consumer financing may involve various factors and stimulating issues but mainly the process of consumer financing involves the following:

Managing the Budgeting of the consumer financing

Process the management of the payments for the consumer finance

Making the Savings and investing at the proper timeline

If the credit is short then borrowing from the organization by the terms and conditions of the organization for consumer financing

Managing credit risk that can be faced by the organization during the consumer financing

During the process of consumer financing the proper care in credit risk management is to be taken otherwise the organization might face serious financial issues due to lack of the credit.

ALTERNATIVE FINANCIAL SERVICES

The alternative financial services are provided to the individuals who utilize it to stabilize their business and social status. it is usually targeted to the individuals having low income or low investment capacity individuals the characteristics of such loans or financial investments are

They are short term loans or finance provided to the individuals who can utilize it to uplift their small business to some higher level by the investment

The loans are provided to the prearranged line of the credit which can fulfill the needs of the individual to invest in the business or improve social status by purchase household items

Payday loans also come in this category which helps the individuals to carryout day to day routines with fulfilling the necessary needs

The time period of returning of such loans Is also short as it is a short term financing

Such characteristics are only for the individuals which are willing to initiate their present status towards the prosperity by some small steps and doing the business in the limited framework in the isolated business environment

THE CONSUMER SATISFACTION

The consumer financing is one of the important factor in this regard. The consumer must be satisfied in terms of financing of different products.

The consumer satisfaction can be done by doing the following

Full information of the terms and conditions of financing

the method of the financing towards the consumer

the product information provided will be update

the needs of the consumer must be done at the high priority

the customers satisfaction is also done by the utilizing the consumer relationship management

Factors that Effects of the consumer financing

The consumer financing can be affected by the following factors

the market competition by the different organizations may effect the consumer financing of a particular company

the handing over of the financing period mentioned by the organization

the fluctuations in the stock market

the products competitiveness as compare with the other organizations/ banks

Conclusion

Consumer Relationship Management is basically the collection of data of the customers and making the use of that data facilitates the users and consumers by letting them to have a good relationship. The management in terms of building good relationship means to have a contact with the consumers in terms with the information of various products and its delivery.

The consumers financing leads from the front to build the sophisticated life of an individual. The individual with the help of consumer financing can enhance his business by getting personal and business loans, higher his social status by getting house loans and credit cards etc..

The management of the credit risks is also very vital in the consumer financing to run the organization with less financial problems.

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