Merchant/Seller Financing

Part
01
of two
Part
01

Competitive Landscape - Divido, Vantage Commercial Capital, and The Klarna Group

Some customer acquisition tactics used by Divido, Vantage Commercial Capital, and The Klarna Group include the use of blogs, analysis of the customers, subscription to promotional emails, access to industry reports, video content, and referral programs.

CUSTOMER ACQUISITION TACTICS

  • Customer acquisition is the process of bringing new customers or clients to your business.
  • Some of the most popular tactics used by companies to attract new clients include 1) defining a target audience to offer a free trial and gather customer data; 2) using social media and website traffic measurements; 3) publishing video content; 4) doing giveaway campaigns on social media; 4) creating high-quality content in blogs; and 5) using SEO tactics.
  • Some common SEO tactics are the use of industry-related keywords, referral programs, back links from authority websites, optimizing the website with an attractive landing page, and email engagement through customized and promotional emails.

COMPETITIVE LANDSCAPE

VANTAGE COMMERCIAL CAPITAL

CUSTOMER ACQUISITION TACTICS
  • Blogs: Vantage Commercial uses blogs to attract new clients, with topics like " A Guide to Help You Choose How Much Office Space Is Needed" and "How Venture Capital Financing Helps Small Businesses," among others.
  • Free Analysis: They also do a free, no-obligation, analysis on the prospective customers' financial portfolio through highly experienced financial professionals by signing up or filling a contact form.
  • Mailing Lists: Finally, the company invites its website's visitors to sign up on a mailing list with their email and name, to get updates on the company's information and promotions.
RATES AND PROCESSING FEES
  • Vantage Commercial doesn't share details on its rates and processing fees publicly. This information can be requested from its processing experts by filling an online form.
UNIQUE SERVICE OFFERINGS
  • Vantage Commercial offers a vast portfolio of business financing lenders in the segments of business financing, commercial real estate loans, working capital advance, and term loans. The company offers a high service level for small, medium, and large companies.
  • Vantage Commercial Capital claims to have the most competitive rates for "SBA 7a and 504 Loans " offering fixed terms out to 25 years as low as 4.5 percent.
  • The Bank rate has provided Vantage commercial Capital with a 4-star rating based on its services, safety, and soundness among other merchant finance companies.

DIVIDO

CUSTOMER ACQUISITION TACTICS
  • Industry reports: The company uses high-quality content to acquire potential customers. They share industry reports like the "Global Lending Report," through an online information form requests.
  • Video Content: On its website, Divido shares a "How does it work?" video as a way to acquire potential customers by raising engagement.
  • Blogs: The company regularly posts industry-specific blog posts covering topics like "How can banks take advantage of the SWIFT ‘Pay Later’ API?" and "Buy it, don’t build it."
RATES AND PROCESSING FEES
  • The company doesn't share details about its rates and processing fees publicly. They provide an online form so the clients can request the information directly from its experts.
UNIQUE SERVICE OFFERINGS
  • The company offers each lender fully customizable features based on their needs and requirements along with lower costs and a quick route-to-market system.
  • Divido works with over a thousand banks, merchants, and partners, including MasterCard, HTC, and BNP Paribas.
  • The UK Government, Google, Skype, Worldpay, TransferWise, and Forrester have recognized Divido as a leader in innovation for the retail and finance industries.
  • Additionally, according to PR News, Divido recently expanded to France and has a 5-star rating from Trustpilot based on more than 300 consumer reviews.

THE KLARNA GROUP

CUSTOMER ACQUISITION TACTICS
  • Blogs: Through Klarna's knowledge hub, the company shares high-quality content on industry-specific topics like "7 changes to your online stores" and "Does size matter for fashion online retailers," among others.
  • Promotional emailing: To attract more clients, Klarna offers a free sign up option for potential visitors and readers of its website's content. After signing up, these subscribers receive regular emails with the latest updates and promotional information.
  • Referral program: The company runs a referral program where it asks merchants to promote Klarna's payment method by using its logos, ready-made messaging, and creative suggestions.
RATES AND PROCESSING FEES
  • The company doesn't share details on its rates and processing fees publicly. Clients can request this information from the customer service team by filling an online form or calling support's phone number.
UNIQUE SERVICE OFFERINGS

RESEARCH STRATEGY

While the rates and processing fees of the companies were not available, our team used the following strategy to locate them.

As our initial step, we searched through each company's official websites and publications related to products, businesses, news articles, annual reports, blogs, and financial statements. We found that most of the information available was related to the services offered by the companies. We also found that Vantage Commercial, Divido, and Klarna have hidden their processing fees and rates and provide them only upon request through an online contact form.

Next, we tried to identify the information from credible independent industry analysis/reports from sources like Bankrate, Trustpilot, Reviews IO, and others. Since these sites analyze various aspects of the companies like their price, service, consumer reviews, and more, we hoped to find a comparison of the companies based on their rates. We found that although Vantage Commercial and Divido gained a 5-star rating in the industry based on their services, safety, and other parameters, there was no ranking based on the rates and processing fees of any company.

Finally, we searched through news articles for announcements about how the companies' have raised or lowered their rates and processing fees as part of their customer acquisition or marketing strategies. We scanned through credible industry news articles and journals like PR Newswire, CNBC, NY Times, Bizjournal, Techcrunch, and others. We found that most of the information available was related to the companies' acquisitions and growth prospects, but found no information about the rates and processing fees of these companies.

While we were unable to locate these fees, we provided the link for the request form of each company. One possible reason why these are not available is that the processing charges are customized for each client and vary per case.
Part
02
of two
Part
02

Competitive Landscape - Charge After and Get Bread

One of the tactics through which Charge After attracts customers is through its partnership with top financial solutions providers such as VISA, PICO, and Fortiva Financial to expand its global outreach. The company has 85% approval rates for its personalized point of sale and financial checkouts.

CHARGE AFTER

Customer acquisition tactics

  • One of the methods by which Charge After entices customers is through its partnership with top financial solutions providers such as VISA, PICO, and Fortiva Financial to expand its global outreach, and also, draw from their customer bases.
  • Another customer acquisition approach used by Charge After includes providing lenders with smooth integration for lenders and streamlining of credit distributions. This is to enable the company to gain a competitive advantage against other top market players and to break into new retail markets.
  • Furthermore, Charge After attracts customers by holding omnichannel and ecommerce conferences and boot camps to educate people about point of sale financing.
  • Other customer acquisition tactics by Charge After includes digital marketing outreach through its various social media handles on Facebook, Twitter, and LinkedIn and employing hashtags such as #chargeafter, #etail, #etaileast, #ecommerce, #omnichannel, and #ecommerce.

Rates and processing fees

Unique service offerings

  • Charge After helps to approve applicants for various retailers, improving sales by about 45% via its expanding chain of global lenders.
  • Charge After's unique competitive advantage includes being reasonable and transparent to lenders and merchants, as well as providing safe and private offerings to customers. Furthermore, due to its network of lenders, it is permitted to offer superior terms to consumers, with the highest reported approval rates.

GET BREAD

Customer acquisition tactics

  • Get Bread increases its customer base through its integration with top e-commerce platforms, such as Shopify, Oracle, Volusion, and 3DCart, and also, by supporting homegrown solutions.
  • Get Bread also draws customers by providing retailers with the benefit of customizing their financing options.
  • Moreover, Get Bread acquires customers through its active social media channels and digital sponsored ads on Twitter and LinkedIn and employing hashtags such as #bread and #etail, #etaileast, #ecommerce, and #POS.

Rates and processing fees

Unique service offerings

  • Customers prefer Get Bread due to the innovative white-label method it employs, which continuously surpasses alternative solutions when it comes to improving customer lifetime value and AOV and generating revenue.
  • According to Forbes, Bread differentiates itself from competitors by enabling retailers to provide financing options that are customized alongside their own branding.

Research Strategy:

To answer this request, we conducted a thorough search through the websites of both companies to find out about their customer acquisition tactics, rates and processing fees, and competitive advantage. We also leveraged information from trusted media sources such as Forbes. We have provided a detailed competitive landscape of both companies in our brief.
Sources
Sources

From Part 02
Quotes
  • "ChargeAfter’s network offers seamless integration for lenders to increase their customer base and compete for business while expanding into new retail markets by streamlining the distribution of credit into online and in-store point-of-sale financing."
Quotes
  • "Businesses choose Bread because our unique full-funnel, white-label approach consistently outperforms other solutions in terms of unlocking revenue and boosting AOV and customer lifetime value."