Why should I offer finance to customers?

Your customers want to see a variety of payment options when shopping online or on the high-street.

Partner with us to offer finance, and your customers can spread the cost over a term that suits them. Flexible, affordable and easy to manage – what more could they want?

You may be wondering ‘what’s in it for me?’ though. Well, retail finance provably drives footfall and traffic, converts browsers into buyers, boosts average transaction value and increases customer loyalty amongst many other benefits for retailers.

In this blog, we’re sharing how you can grow your business by offering finance to your customers.

1. Drive customers to your store

Whether your retail model is omnichannel, mostly in-store or online, a compelling finance product will attract customers. And more traffic equals more opportunities to convert.

You can also safely assume that, if offering finance brings in custom, then not offering flexible payment options will drive customers away too – namely straight through the doors of your competitors. Customers simply expect to be able to pay in a way that suits them. And if you don’t offer that, they’ll head elsewhere.

Top tip: Add a personal touch to your payment options

We go beyond offering ‘standard’ finance products. Our unique tailoring functionality allows us to suggest the most appropriate and affordable payment plans for eligible customers.

For example, we can turn declines into accepts by suggesting a lower loan amount, longer term or higher deposit. Or we can lower the cost of borrowing (and subsidy costs) by telling customers when they’re able to reduce their loan term. These bespoke options allow customers to create a payment plan that suits them.

2. Accelerate purchasing decisions

Every retailer will understand the frustration of a customer abandoning their basket, whether they click away from your site at the checkout or walk out of your store to ‘think about it and come back later’.

Often, this is to do with cost. A customer may need a bit of extra time to think and research before parting with a large amount of cash upfront. With finance, they can spread the cost over monthly payments that suit their budget. Give your customers greater confidence at the checkout and guide them to the end of their shopping journey quicker.

Top tip: Try interest free

If you’re keen to convert on-the-fence customers, an interest free payment option allows them to spread the cost without having to pay any additional charges.

3. Boost average transaction value

When a customer is making a significant order, they will have likely have a budget in mind. If their dream item or service is too expensive, they will have to re-think, right? Not necessarily. Thanks to finance, they may be eligible to borrow more than they could afford to pay upfront.

Our survey revealed that 58% of customers spend more when they know finance is available. That’s over half of your customers willing to upgrade or add to their basket if they know they can spread the cost.

Top tip: Offer our unique max loan feature

We’ll tell you the max amount we can lend to eligible customers, so they can shop knowing how much they’re able to borrow. It’s a great upselling tool, allowing your sales team to kick-start dialogue with customers.

4. Improve the customer experience

Simply offering flexible finance may not be enough to impress your customers. The user journey needs to be seamless. The application process should be quick and simple. The customer expects an instant decision.

You can rely on us to deliver all that and more, because our retail finance offering is designed with your customers in mind.

Our CreditMaster3 application platform is packed full of features to make our finance options stand out without disrupting the customer journey too. From our finance calculator to soft search features, allow finance to become an integrated part of your customer experience.

Top tip: Put your payment options front and centre

Introduce finance at the start of the journey to influencer a customer’s purchasing decision from the get-go. We have plenty of tips on how to promote your finance options – follow us on LinkedIn or bookmark our blog for our latest updates.

5. Support your outstanding customer service

Your customers are at the heart of everything you do. So it’s only right you expect third parties to treat your customers with the same level of care and respect.

Customers often don’t differentiate between multiple companies working together. It’s therefore vital you choose a partner you can rely on to help you create a great customer experience at every touchpoint.

Our award-winning Customer Experience teams act as an extension of your own. We’re accredited by the Institute of Customer Service and have thousands of five-star Feefo reviews to reflect a job well done.

Top tip: Empower your customers to look after their finance agreement their way

Not all customers like to speak on the phone. We also offer the option for customers to manage their account online or via the app 24/7, giving them greater control. They can make unlimited overpayments, settle early, change their personal information, update payment details and much more with ease.

6. Increase customer loyalty

Customers who have a great experience with you are going to come back time and time again. You can be sure to leave a lasting impression by not only offering finance, but by partnering with a credit provider that understands the importance of treating customers well.

Not only will impressed customers continue to shop with you, they’ll likely share their experiences with others too. This can open the door to a huge range of new customers.

According to Esteban Kolsky, 72% of customers will share a positive experience with 6 or more people. And, with over half of people influenced by recommendations from friends and family, word-of-mouth can make a big difference to your business.

Top tip: Read our reviews

When searching for the ideal retail finance partner, always look at it from a customer perspective too. Our Feefo and TrustPilot pages are a great way to see what it’s really like to borrow from us, so you can trust us to be part of your customer journey.

7. Grow sales with little risk

One of the great things about offering finance through a provider like Novuna is there’s very little risk to your business. We take on the credit risk, conducting credit searches and affordability checks to ensure we’re lending responsibly. Plus, we handle all customer repayments. You’ll be able to boost sales and grow your business without taking on any additional risk.

What’s more, it’s quick, simple and free-of-charge to get set up with us. So there really is no barrier to offering finance.

Top tip: Partner with a responsible lender

Here at Novuna Consumer Finance, we do all we can to treat your customers fairly. While accept rates are undoubtedly important, accepting suitable and eligible customers should be a top priority. Ultimately, you need to know your customers are being looked after – including ensuring they’re able to comfortably afford your products on finance.

Is finance right for your business?

There are lots of common misconceptions about offering finance, from the reason customers often take out finance to what sectors most commonly offer credit options. We work with a huge variety of businesses and customers and can confidently say that there’s no ‘one size fits all’ when it comes to finance. For more information, head over to our blog where we myth-bust some of the most common finance misconceptions.

If you’re ready to find out what finance could do for your business, get in touch with our team.