How to Offer Finance to Your Customers

Making Finance Accessible: Why Businesses Should Care

In today’s fast-moving retail world, customers expect flexible, practical ways to pay for their goods and services. By offering finance, businesses make their products more accessible, stand out from the competition, and see a direct uplift in sales and customer satisfaction.

“Flexible finance makes big purchases feel possible.”

Key Benefits of Providing Finance

• Increased sales: Higher-ticket purchases become manageable for more customers.
• Better conversion rates: Breaking up payments into instalments removes friction.
• Larger average order values: Customers are often willing to upgrade when costs are spread out.
• Expanded customer base: Reach buyers who might otherwise be priced out.
• Improved loyalty: Showing understanding of customer needs builds long-term relationships.

Callout:

Businesses offering finance have been shown to convert up to 20% more sales, especially in sectors like home improvements, health, and technology.

Types of Finance Options Explained

As every business and customer is different, so are finance solutions. Here are the main types UK retailers typically offer:

1. Interest-Free Credit (0% Finance): Customers pay off their purchase monthly with no added interest. Simple and attractive.
2. Buy Now, Pay Later: Payment is postponed for a pre-set period. Great for customers needing some leeway.
3. Interest-Bearing Credit: Purchases are repaid in instalments with interest over the agreed term.
4. Hire Purchase: The customer uses the item while paying for it in stages, owning it once all payments are complete—perfect for cars or expensive equipment.
5. Personal Loans: Arranged through a third-party lender, giving customers more buying power.

How to Offer Finance: The Step-by-Step Process

Implementing finance is straightforward when you partner with a broker like Kandoo. Here’s a typical journey for both business and customers:

1. Customer chooses finance at checkout.
2. Completes a brief application online or in-store.
3. Credit check is completed by the broker/lender.
4. Agreement is signed electronically.
5. Funds are transferred to you. The customer pays in instalments directly to the provider.

“With Kandoo, setup and integration into your existing process is seamless—no FCA authorisation required for most businesses.”

Compliance and Regulation

• UK finance offers are regulated by the Financial Conduct Authority (FCA).
• Going direct means you’ll need FCA authorisation—unless you outsource the process to an authorised broker.
• Kandoo, as an FCA-regulated credit broker, takes care of compliance, so you can focus on running your business.

Highlight:

Working with an established broker minimises your risk and simplifies your compliance obligations.

Knowing Your Customers: What to Consider

Before launching finance options, ask yourself:

• Are my products/services high value enough to benefit from finance?
• Who is my typical customer—are they likely to want or need flexible payments?
• Which type of finance best fits my customer demographic?
• What training or tech upgrades will my staff need?

Practical Tip:

Analyse previous sales data to pinpoint opportunities where finance could have tipped the balance in your favour.

The Costs and Risks

• Provider fees: Most brokers and lenders charge a commission per transaction.
• Tech integration: Initial set-up costs are usually offset by increased sales.
• Credit risk: Generally falls on the finance provider, not your business, when working with brokers.

“Partner with a broker who offers transparent fees and a robust application process to protect your brand.”

How Kandoo Makes it Simple

Kandoo is a UK-based retail finance broker supporting both small and large businesses with bespoke finance solutions.

• Access to leading lenders: Giving your customers more choice and a better chance of approval.
• Full compliance management: No need for direct FCA authorisation.
• Easy tech integration: Works with both online and physical retailers.
• Expert support: Kandoo’s knowledgeable team is always ready to help.

Did you know?

Businesses using Kandoo have seen measurable increases in both sales figures and positive customer feedback.

Success Stories: Merchants Benefiting from Finance

Many of our partners, such as WLC Online, Transform Healthcare, and M&S Renewables, have significantly grown their customer base and increased transaction values since integrating finance with Kandoo.

Ready to Get Started?

Offering finance can transform your customer journey and propel your business forward. Partner with Kandoo to:

• Unlock more sales
• Build stronger customer loyalty
• Stay on the right side of compliance

“Start offering finance today—your customers (and your bottom line) will thank you.”

Act now:

• Register with Kandoo
• Apply for a loan as a customer