How To Offer Finance As An IAR

What customer finance can unlock at the till

Customer finance lets you offer a regulated way for shoppers to spread the cost of higher-value purchases, without you needing to become a lender. In practical terms, it means your business can present finance as an additional payment option at checkout, online or in-store, while a regulated finance provider handles eligibility, underwriting, agreements, and collections. For many UK retailers, the value is strategic as well as commercial: finance can make pricing feel more manageable, reduce “walk-aways” at the point of decision, and help you compete with larger brands that already offer instalments.

Standout point: finance is not a discount - it is a payment method that can protect margin.

Why customers choose finance in this market

Customers typically use finance when the purchase is important but the timing is inconvenient for cashflow. A planned home upgrade, a must-have repair, or a business-critical item often lands at the wrong moment in the monthly budget. Finance can also feel more transparent than ad-hoc workarounds like credit cards, because repayments and term length are presented upfront and the customer can decide based on the total cost over time. For some shoppers, the ability to apply quickly online or in-store is the difference between “I will think about it” and “I will go ahead today”.

How finance tends to lift conversion and order value

Offering finance can increase sales by widening the pool of customers who can afford your products now, rather than later. It can improve conversion at the point where price becomes the main objection, particularly on baskets that cross a psychological threshold. It can also increase average order value by making add-ons feel achievable in monthly terms, not just in headline price. Done properly, finance supports a more confident buying decision: customers can compare options, understand repayments, and proceed without feeling pressured.

Short takeaway: when customers can budget, they buy with less hesitation.

Typical transaction values (guide)

Examples of what you can finance

1. Furniture and beds

2. Dental and cosmetic treatments

3. Home improvement and installations

4. Automotive repairs and servicing

5. Appliances and electronics

6. Fitness equipment

7. Private medical services

8. Education and training programmes

The FCA angle, in plain English

In the UK, arranging regulated credit is not something you can casually add to a checkout flow. FCA authorisation is required for regulated credit activities, which is why many retailers use an Introducer Appointed Representative (IAR) structure instead. As an IAR, you can introduce customers and share financial promotions that your principal firm has approved, but you must not advise, negotiate terms, or complete the credit agreement. You also need to plan for a required notification period before you can start regulated activity.

How introducer and broker models work in practice

An introducer model is built for businesses that want the commercial benefit of offering finance without taking on the full regulatory burden. Under an IAR arrangement, your business operates under a principal firm’s FCA permissions. The principal is responsible for oversight and will typically provide approved customer-facing materials, training, and a compliant process for how finance is presented. The trade-off is control: as an IAR you are limited to the principal’s products, and you cannot write your own finance marketing or materially change approved promotions. For many SMEs, that constraint is a feature rather than a flaw because it reduces compliance risk while still enabling omnichannel promotion across website, email, social, and in-store formats.

What you can do vs what you cannot (IAR scope)

A clear, compliant customer journey (step by step)

1. Signpost finance early: on product pages, quotes, and in-store POS, present finance as a payment option using approved wording.

2. Confirm the customer wants to explore finance: keep it neutral and factual, avoiding any recommendation.

3. Share the approved finance information: display the principal’s approved promotion, including representative examples where required.

4. Move the customer into the application flow: via the approved link, QR code, or integrated checkout journey.

5. Customer completes the application: the finance provider collects details, runs checks, and presents the agreement.

6. Decision is provided: acceptance, referral, or decline is handled within the provider’s process.

7. Customer e-signs or confirms: the agreement is completed within the provider environment, not by your staff.

8. You fulfil the order: once confirmation is received, you deliver goods or schedule the service.

9. Post-sale support stays clear: you handle product/service queries; the provider handles account, repayments, and statements.

Next-step suggestion: create a short staff script for steps 1-3, and keep it identical across store, phone, and live chat.

Getting started with Kandoo

If you want to offer finance without taking on the cost and complexity of full FCA authorisation, Kandoo can help you explore whether an IAR route fits your business model. The process typically starts with a practical review of your proposition, average order values, customer profile, and how you sell (online, in-store, or both). From there, you align on a compliant go-live plan, including the required lead time before regulated activity can begin, the integrations you will use at checkout, and the marketing assets you can deploy. The aim is straightforward: a finance option that is clear to customers, workable for your team, and structured to meet FCA expectations.

Quick implementation checklist

• Confirm your product/service eligibility for finance

• Map where finance will appear (PDP, basket, quotes, POS)

• Prepare staff training and basic scripts

• Allocate time for the notification window and onboarding

• Plan launch marketing using approved promotions only

FAQs

What is an IAR in retail finance?

An Introducer Appointed Representative is a business that can introduce customers to a principal firm’s regulated finance options and share the principal’s approved financial promotions, operating under the principal’s FCA permissions.

Do I need my own FCA authorisation to offer finance?

Not necessarily. FCA authorisation is required to carry out regulated credit activities, but many retailers offer finance via an IAR arrangement under a principal firm’s authorisation.

What am I allowed to do as an IAR?

You can signpost finance, introduce the customer into the approved application journey, and use the principal’s approved marketing materials across channels.

What must I avoid doing as an IAR?

You must not advise a customer on which product to choose, negotiate rates or terms, or complete the credit agreement. Those actions can stray into regulated activity.

Can I promote finance on my website and social media?

Yes, provided you use only financial promotions that have been created and approved by your principal firm, without rewriting or materially altering them.

How long does it take to go live?

You should plan for a lead time, including a period where the principal notifies the FCA before you can begin regulated activity. Build this into your launch and marketing schedule.

Can I offer multiple lenders as an IAR?

An IAR is typically limited to introducing customers to the principal firm’s products. If you want a multi-lender approach, you may need additional appointments or to consider your own FCA permissions.

Is the IAR route a good long-term solution?

It can be. Many retailers use IAR status as a lower-barrier way to prove demand and refine processes, and some later move towards limited or full FCA authorisation as their finance offering grows.

What will a principal expect from my business?

Principals generally need confidence that you are financially sound and competent, with the right governance, staff training, and operational controls to operate compliantly.

What should I do next if I want to offer finance?

Audit your typical order values and where customers hesitate, then decide where finance should appear in your sales journey. Speak to Kandoo to explore the best-fit structure and rollout plan.