Pros and Cons of Financing the POS System

The POS system is currently the most preferred method of payment in many businesses. The system is built with a scanner and a printer for receipts and is only used with bank cards.

The store owner simply slots in the card, the system goes through the card information and deducts the amount from the customer’s bank account. If the customer has enough money to foot the bill, the POS sends the money to the account of the store owner. Afterward, the receipt is printed out and given to the customer.

A lot of people that cannot afford the upgrade often wonder if adopting the POS system is a good investment. Currently, there are loans for people who need the POS system for their businesses. These loans can be gotten from the bank.

The POS loans are for business owners who have already decided to adopt the POS system but cannot afford it at the moment. People who do not have enough to pay for the full price can also obtain this loan.

How to obtain a POS loan

As soon as the POS system has been chosen, the buyer will have to fill out an application for a short credit. This application will be examined with a scoring system. Afterward, the bank will send a notification that refuses or approves the application.

Once the application has been approved, the buyer will sign a contract with the bank. The buyer will also make the payment for the first installment and get the POS system. Sometimes the POS system can be retrieved when the debt is not paid.

Pros of getting a POS loan

  • Availability

This is the biggest benefit of getting a POS loan. It is especially beneficial for people who just started their businesses or people who recently relocated to the country. Such people usually don’t get loans easily as banks have not verified them as creditworthy.

  • It doesn’t take time

This process is very straightforward and doesn’t take time. The offer for the loan is usually written next to the price sheet. You also get to see the various payment options and it helps you to make a quick decision.

Cons of getting a POS loan

  • They are expensive

POS loans are very expensive when it comes to interest rates. The rates can reach as high as 30% per annum.

If you are patient and can save up a lot of money in a short while, you can purchase the POS system without having to take a loan.

  • No refunds

You must pay the loan even if the POS system breaks down or gets stolen. If you don’t have insurance, you will lose a lot more.

Merits of the POS system

The POS system has many advantages to offer. Here are a few of those benefits:

  • The POS system is a safe and secure method of payment. The customer doesn’t have to worry about his bank details getting leaked.                                 
  • The installation of POS systems is very easy. They don’t require a large amount of space and are low – maintenance devices.
  • The Point of Sales system prevents errors as it is very accurate. This helps to prevent unnecessary expenses. Sometimes we make mistakes when we do the calculations ourselves.
  • The chip POS system lasts for a long time, unlike the magnetic swipe POS. If you are looking for a POS system that will save you time and money, get the chip-based POS system. 
  • If you use a web-based POS system, you won’t have to bother with the installation. This type of POS system is managed by the system manager so the main user doesn’t have to install it.
  • With the web-based POS system, you don’t have to worry about the cost of updates and reconfiguration.
  • The POS system also takes care of the inventory. This enables you to stock up on the items that you need.
  • The Point of Sales System also manages and analyzes your sales data. It notifies you whenever you are running low on goods.  
  • The POS allows you to control your sales, returns, and inventory. It also helps you to organize discounts, promotions, customers and employees’ private information and working hours.

Cons of the POS system

  • A customer’s PIN can easily be stolen by someone who has been watching closely. That’s why customers must be meticulous as they put in their numbers.
  • Hackers can use a fraudulent system to get the card details of a customer.
  • The POS system is more expensive than the usual cash registers.
  • Without stable Internet connectivity, the POS system can’t function.