A Beginner's Guide to Offering Retail Finance for Furniture

Who Will Find This Guide Useful?

Hey there! If you’re a UK furniture retailer, thinking about making your customers’ buying journey smoother and more affordable, this guide is for you. Whether you run a cosy local store or manage a growing online showroom, offering retail finance can add a special touch to your customer experience. Let’s break it down together!

Retail Finance, Simply Explained

Retail finance might sound fancy, but it simply means giving customers the option to spread the cost of their furniture purchases over several months or even years, instead of paying everything upfront. In essence, it’s about turning big price tags into manageable, bite-sized payments.

Why Furniture Finance Is a Game-Changer

Furniture isn’t just a purchase — it’s an investment in comfort, style, and home life. But we all know that quality pieces can come with a hefty price. Retail finance can:

• Make premium and higher-ticket items more accessible to more people
• Encourage customers to buy now instead of putting it off
• Reduce financial pressure and make the experience feel friendlier
• Increase average order values for your business

It’s a win-win! Customers get the furniture they love, and you get to grow your sales while making shopping memorable (in the best way).

How Retail Finance Works (No Jargon!)

Here’s the gist, step by step:

1. Customer Browses: Shoppers pick out their favourite pieces from your range.
2. Finance Option Offered: At checkout (online or in-store), they see an option to pay in instalments.
3. Application: The customer clicks through a quick application form. Most finance decisions are made in minutes.
4. Approval: If approved, the finance provider pays you upfront, and the customer pays them back over time.
5. Aftercare: Your customer walks away happy, and you both enjoy peace of mind.

Most finance brokers — like Kandoo — partner with multiple lenders, making access to tailored plans simple and hassle-free.

Putting It Into Perspective: Jane’s New Sofa

Let’s meet Jane. She’s just found her dream sofa — but the £900 price tag isn’t in the monthly budget. Lucky for Jane, your store offers retail finance. She opts for a 12-month interest-free option and pays just £75 per month, spreading out the cost in a way that feels do-able. Jane gets a stylish new sofa, and you win a satisfied customer eager to shop again!

Jargon Buster: Key Terms, Demystified

• APR: Annual Percentage Rate. This is the interest rate charged per year.
• Interest-Free Credit: A plan where the customer doesn’t pay extra interest — they just pay back what they borrowed.
• Deposit: An upfront payment, usually a percentage of the total.
• Term: The length of the finance agreement (for example, 6 months or 2 years).
• Credit Check: A check to decide if the customer is eligible for finance.

Frequently Asked Questions

Is retail finance just for expensive pieces?
Nope — you can offer it on a wide range of products, from statement sofas to compact side tables.

Will I get paid upfront?
Yes. You receive payment from the lender, so you don’t have to wait for repayments from your customer.

Does offering finance mean more admin?
Most brokers and lenders (like Kandoo) handle the heavy lifting. You focus on your customers and sales!

Is it safe for my business and customers?
Reputable finance providers employ strict security and data privacy measures.

Ready to Get Started?

Curious about adding retail finance to your furniture store? Reach out to trusted finance brokers like Kandoo to explore your options. It’s time to help your customers create homes they love — without the stress of a big upfront bill!

Let’s make furniture shopping more accessible for everyone. Learn more, ask your questions, and discover the right plan today.