How to Use Retail Finance to Achieve Your Business Goals

Introduction

Retail finance has become an essential tool for businesses looking to grow and meet their objectives in an increasingly competitive marketplace. Whether you're a small independent retailer or a larger chain, offering retail finance can help you increase sales, improve customer satisfaction, and expand your reach. But how exactly can retail finance be used to achieve your business goals? In this article, we'll explore the benefits of retail finance, how it works, and how partnering with a retail finance broker like Kandoo can provide you with the support you need to succeed.

What is Retail Finance?

Retail finance is a payment solution that allows customers to spread the cost of a purchase over time, usually through instalments. This form of financing is particularly appealing to customers making high-value purchases, as it provides them with the flexibility to buy now and pay later. For businesses, offering retail finance can be a powerful way to increase sales and improve cash flow.

There are several types of retail finance options, including:

• Interest-Free Credit: Customers can pay for goods over a set period without incurring any interest charges.
• Interest-Bearing Credit: Customers spread the cost of their purchase, but interest is added to the repayments.
• Buy Now, Pay Later (BNPL): Customers can defer payments for a set period, after which they can either pay in full or begin a repayment plan.

Retail finance is typically offered through a third-party provider, such as a retail finance broker, who manages the credit application process and ensures compliance with financial regulations.

How Retail Finance Can Help You Achieve Your Business Goals

Now that we understand what retail finance is, let’s explore how it can be a strategic tool to help your business meet its objectives.

1. Increase Sales and Average Order Value

One of the most immediate benefits of offering retail finance is the potential to increase your sales. By giving customers the option to spread the cost of their purchase, you remove the barrier of a high upfront payment, making it easier for them to commit to a purchase.

Additionally, retail finance often leads to a higher average order value (AOV). Customers who have the option to pay in instalments are more likely to add extra items to their basket or opt for higher-end products. This is particularly true for businesses that sell high-ticket items such as furniture, electronics, or luxury goods.

Case in Point: Kandoo’s Role

Partnering with a retail finance broker like Kandoo can streamline the process of offering finance to your customers. Kandoo works with a wide range of lenders, ensuring that you can offer competitive finance options that suit the needs of your customers. With Kandoo’s flexible finance options, your business can attract more customers and increase its AOV, all while improving the overall shopping experience.

2. Improve Customer Loyalty and Satisfaction

Offering retail finance is not just about increasing sales; it's also about improving the overall customer experience. In today's retail environment, customers expect flexibility in how they pay for goods and services. By offering retail finance, you give your customers the convenience and choice they’re looking for, which can significantly improve customer satisfaction and encourage repeat business.

When customers feel that they can afford the products they want without financial strain, they are more likely to have a positive perception of your brand. Satisfied customers are also more likely to recommend your business to others, further boosting your reputation and expanding your customer base.

How Kandoo Can Help

Kandoo understands the importance of customer satisfaction. By offering a seamless and transparent finance solution, Kandoo helps businesses provide their customers with a smooth and hassle-free shopping experience. The easy-to-use finance application process ensures that customers can quickly and confidently choose a payment plan that works for them, fostering loyalty and repeat business.

3. Boost Cash Flow and Reduce Risk

For many businesses, cash flow is a constant concern. Retail finance can help alleviate some of this pressure by ensuring that you receive payment upfront from the finance provider, even if the customer chooses to pay in instalments. This allows you to maintain a healthy cash flow while still offering flexible payment options to your customers.

Additionally, retail finance reduces the risk of bad debt. When you partner with a retail finance broker, the responsibility of collecting payments and managing credit risk is transferred to the finance provider. This means you can focus on growing your business without worrying about chasing unpaid invoices or managing credit defaults.

Kandoo’s Contribution

Kandoo offers a secure and efficient way for businesses to manage their cash flow. By working with a network of reputable lenders, Kandoo ensures that businesses receive timely payments while minimising the risk of financial loss. This allows you to focus on scaling your operations and achieving your business goals without being bogged down by financial risks.

4. Attract New Customers

In a competitive retail environment, standing out from the crowd is crucial. Offering retail finance can be a key differentiator that helps you attract new customers. Consumers are more likely to choose a retailer that offers flexible payment options, especially for big-ticket purchases. By advertising your finance options prominently, you can appeal to a broader audience, including those who might otherwise be unable to afford your products.

Retail finance is particularly appealing to younger consumers, such as millennials and Gen Z, who are more likely to prefer payment flexibility. By catering to this growing demographic, you can expand your customer base and tap into new markets.

Kandoo’s Expertise

Kandoo can help you reach new customers by providing tailored finance solutions that appeal to a wide range of consumer profiles. Their extensive lender network means that you can offer competitive finance options to suit different types of customers, ensuring that your business remains accessible and attractive to a broad audience.

5. Stay Competitive in the Market

Retailers who fail to offer finance options may find themselves at a disadvantage compared to competitors who do. In many industries, offering retail finance has become an expectation rather than a bonus. If your competitors are offering flexible payment solutions and you’re not, you could lose potential customers to them.

By incorporating retail finance into your business model, you ensure that you remain competitive in your market. Whether you're competing with other brick-and-mortar stores or e-commerce giants, offering finance can level the playing field and give you the edge you need to succeed.

Kandoo’s Support

Kandoo helps businesses stay competitive by offering flexible and scalable finance solutions. Whether you're a small retailer or a larger enterprise, Kandoo can tailor its services to meet your specific needs, ensuring that you can offer the same level of flexibility as your competitors—if not more.

6. Simplify the Sales Process

For many businesses, the sales process can be complex, especially when it involves high-ticket items that customers may hesitate to purchase outright. Offering retail finance simplifies this process by providing customers with a clear and manageable way to pay for their purchases. Instead of worrying about how to afford a large upfront cost, customers can focus on the benefits of the product and how it meets their needs.

Retail finance can also help close sales more quickly. Customers who might otherwise take time to think about a large purchase are more likely to commit when they know they have flexible payment options available.

Kandoo’s Solution

Kandoo simplifies the sales process by offering an easy-to-use online platform that integrates seamlessly with your existing sales channels. Their finance options are designed to be quick and straightforward, ensuring that your customers can complete their purchases with minimal hassle. By removing friction from the sales process, Kandoo helps businesses close deals faster and more efficiently.

How to Implement Retail Finance in Your Business

Now that we've explored the benefits of retail finance, let’s look at how you can implement it in your business.

Step 1: Choose a Retail Finance Broker

The first step in offering retail finance is to partner with a reputable retail finance broker, such as Kandoo. A broker acts as an intermediary between your business and the finance providers, ensuring that you can offer a range of finance options without having to manage the complexities of credit applications and compliance.

Kandoo works with a network of trusted lenders, providing you with access to a variety of finance products that suit your customers' needs. Their platform is easy to integrate into your website or point-of-sale system, making it simple to offer finance both online and in-store.

Step 2: Promote Your Finance Options

Once you’ve partnered with a retail finance broker, it’s important to let your customers know that you offer finance. Displaying your finance options prominently on your website, in-store signage, and marketing materials can help attract new customers and encourage existing ones to take advantage of the flexible payment plans.

Kandoo provides businesses with marketing materials and support to help promote their finance options effectively. By working with Kandoo, you can ensure that your customers are fully aware of the payment solutions available to them.

Step 3: Train Your Team

If you have a physical store, it’s important to train your sales team on how to present retail finance options to customers. Your staff should be knowledgeable about the different payment plans available and able to answer any questions customers may have.

Kandoo offers training and support to help your team understand how to present finance options in a way that adds value to the customer experience.

Conclusion

Retail finance is a powerful tool that can help you achieve a range of business goals, from increasing sales and improving customer satisfaction to boosting cash flow and staying competitive. By partnering with a retail finance broker like Kandoo, you can offer flexible payment solutions that meet the needs of your customers while driving growth for your business.

Whether you're looking to attract new customers, simplify your sales process, or improve cash flow, retail finance can be a key component of your business strategy. With Kandoo’s expertise and support, you can unlock the full potential of retail finance and take your business to new heights.