How to Offer a Line of Credit in WooCommerce

Line of Credit

A Line of Credit or a Credit Line is a predefined borrowing limit which can be used anytime for purchasing products/services. The user doesn’t have to pay actual money when they make their purchase using their line of credit. Once the purchase is completed, the amount used for the purchase will be debited from the line of credit. The used credits will have to be repaid later. Once the used credits have been repaid, the credits will be added to the user’s line of credit. The process will repeat until the line of credit has been cancelled/suspended.

Benefits of Offering a Line of Credit or Credit Line to your Customers

1. Additional Sales and Revenue
Users usually postpone their purchases due to lack of funds. When you offer a Line of Credit or Credit Line to your users, they can make their purchases whenever they want using their Line of Credit and repay the used credits later. This can increase the site’s sales which thereby increases the site’s revenue.

2. Increase Customer Loyalty
When customers are offered a Line of Credit, it increases their loyalty which guarantees future sales from them.

3. Attract New Users
Loyal users often refer your site to their friends and relatives which can bring more sales and revenue.

How to Offer Line of Credit on a WooCommerce Shop?

Credit Line or Credits for WooCommerce is a Premium Plugin developed by FantasticPlugins. Using this plugin, you can offer a Credit Line to your customers using which they can make purchases on your shop and repay the used credits later.

Fund Types

1. Virtual Funds
In this fund type, the Site Admin can issue Line of Credits or Credit Line to their users without using any actual money.

2. Admin Funds
In this fund type, the Site Admin first needs to add money to the Admin wallet and when a Credit Line is issued, the amount will be debited from the Admin’s Wallet and issued to the user as a Line of Credit or Credit Line.

Approval Methods

1. Application Based Approval
In this approval method, the user has to submit an application to receive a Line of Credit.

2. Auto Approval
In this approval method, the user will automatically receive their Line of Credit based on their eligibility.

Ways to Offer Line of Credit to Customers

1. Virtual Funds with Application Based Approval

The site admin will have to configure predefined rules which will decide which users can apply for a Line of Credit or Credit Line and what will be their default Line of Credit or Credit Line.

If a user is eligible to apply for a Line of Credit or Credit line, an application form will be visible. The user will have to submit an application.

Once the application is submitted, the Site Admin will be notified by email. The Site Admin will have to manually review the application. The system will suggest a Line of Credit or Credit Line for that user. The admin can approve the suggested Credit Line or input a value of their own.

If the application is approved, the user will receive their Line of Credit or Credit Line and they will be notified by email.

2. Virtual Funds with Auto Approval

The Site Admin will have to configure predefined rules which will decide which users can apply for a Line of Credit or Credit Line and what will be default Line of Credit or Credit Line.

If a user is eligible to receive a Credit Line or Line of Credit, the system will automatically assign them a Credit Line and notify the user via email.

3. Admin Funds with Application Based Approval

Funds should be added to their Admin Funds Wallet before they can start issuing Credit Line to their users. Admin can add the funds themselves or assign a user to do it for themselves.

Once the funds has been added to the Admin funds Wallet, The Site Admin will have to configure predefined rules which will decide which users can apply for a Line of Credit or Credit Line and what will be default Line of Credit or Credit Line.

If a user is eligible to apply for a Line of Credit or Credit Line, an application form will be visible. The user will have to submit an application.

Once the application is submitted, an admin will be notified by email. Admin will have to manually review the application. The system will suggest a Line of Credit or Credit Line for that user. The admin can approve the suggested Credit Line or input a value of their own. If the application is approved, the user will be notified by email.

4. Admin Funds with Auto Approval

Funds should be added to their Admin Funds Wallet before they can start issuing a Line of Credit or Credit Line. Admin can add the funds themselves or assign a user to do it for themselves.

The site admin will have to configure predefined rules which will decide which users can apply for a Line of Credit or Credit Line and what will be default Line of Credit or Credit Line.

If a user is eligible to receive a Credit Line or Line of Credit, the system will automatically assign them a Credit Line and notify the user via email.

How Users can use Line of Credit or Credit Line in a WooCommerce Shop?

– If the user wishes to use their Line of Credit or Credit Line, they will have to add products to cart and in the checkout page, a Credits Payment Gateway will be visible. The user will have to select the Credits Payment Gateway and place the order.

– Once the Order is placed, the order amount will be debited from the user’s Line of Credit. The user can place any number of orders using their Line of Credit or Credit Line.

– Based on the configuration, a bill will be generated every month on a particular day and will be mailed to the user. This bill contains the details of all purchases which were made using the Line of Credit or Credit Line.

– The user will have to make the payment before the date specified in the bill. When the payment is made, the repaid amount will again be added to the user’s Line of Credit or Credit Line.

– This process repeats all over again.

Features

– The Billing Date and the Repayment Date can be customized

– Option for the Site Admin to charge Interest for purchases made with Credit Line or Line of Credit

– Option for the Site Admin to charge a Late Fee if the payment is made on time.

– Option for the Site Admin to modify a user’s Billing Date and Repayment Date.

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