What to look for in a retail finance provider
Written by
Tuesday 25th March 2025
In today’s fiercely competitive retail environment, offering flexible and accessible finance options is no longer a luxury - it’s a necessity.
As customer acquisition costs continue to climb and retention becomes increasingly challenging, partnering with the right retail finance provider can be a game-changer. But what exactly should retailers look for when choosing a finance partner?
Based on insights from Novuna Consumer Finance's recent market analysis, here are the key factors to consider.
1. A customer-centric approach
A successful retail finance provider should reflect your brand values and prioritise customer satisfaction at every stage. Since customers rarely differentiate between your brand and your finance provider, it’s essential to partner with a supplier that aligns with your customer service standards.
As highlighted in the Novuna report, businesses that focus on exceptional customer experiences see significantly higher retention rates and profitability.
Key Consideration: Choose a finance provider known for putting customers first, with transparent processes and positive customer feedback.
2. Flexible finance options
In a world where monthly budgeting is the norm, the ability to offer flexible finance solutions is crucial. Customers increasingly expect the option to spread the cost of big-ticket items over manageable monthly payments. The report emphasises that offering finance options not only makes products more accessible but also helps in driving a higher average transaction value (ATV).
Key Consideration: Ensure the finance provider offers a range of flexible payment terms that align with your customers’ financial habits.
3. Seamless integration
A finance provider's solutions should integrate effortlessly with your existing point-of-sale systems - both online and in-store. Frictionless integration is key to providing a smooth customer experience, reducing abandoned carts, and increasing conversion rates.
Key Consideration: Opt for providers with proven integration capabilities and positive case studies showcasing seamless implementation.
4. Proven track record and reliability
Experience and reliability are non-negotiable. Novuna Consumer Finance’s extensive network of over 3,000 retail partners and a lending portfolio of £2.3 billion demonstrate the ability to support retailers effectively. A proven track record indicates that the provider can handle both high transaction volumes and complex financial arrangements in a compliant way.
Key Consideration: Look for finance providers with substantial industry experience and a portfolio of satisfied retail partners.
5. Support for customer retention
Acquiring a new customer costs five times more than retaining an existing one. Offering tailored finance options can significantly boost retention by reinforcing your commitment to customer care, ensuring they feel supported throughout their purchase journey. Novuna’s approach to enhancing customer lifetime value through flexible finance solutions is a strategy more retailers are looking to embrace.
Key Consideration: Choose a provider that offers tools and strategies aimed at improving customer retention and lifetime value.
6. Transparent and competitive fees
Hidden fees or complex pricing structures can erode trust and deter potential customers. Transparency in interest rates, fees, and repayment terms is essential for maintaining a positive customer relationship and ensuring high conversion rates.
Key Consideration: Partner with a finance provider that offers clear, straightforward pricing without hidden costs.
Choosing the right retail finance provider is a strategic decision that can significantly impact both customer acquisition and retention. By prioritising customer-centric service, flexible solutions, seamless integration, and a proven track record, retailers can enhance the customer experience, drive higher transaction values, and ensure sustainable growth.
Want to know more? Download ‘The true cost of customer acquisition and retention’ whitepaper.
Written by
Stephanie Reid, our Marketing Manager, has been helping retailers utilise their payment options for nearly a decade. She often shares her unique insights on how to promote finance effectively, ensuring it's front of mind when customers are making a purchasing decision.
