How to Offer Finance for Boat Engine Upgrades

Introduction

Offering finance to your customers for boat engines and upgrades can set your marine business apart. Flexible payment options remove barriers, helping more enthusiasts upgrade or repair their vessels. Let’s break down how to launch and manage customer finance in this specialist market.

Why Offer Finance for Boat Engines and Upgrades?

• Increased Sales: Large purchases become affordable via monthly payments.
• Customer Loyalty: Financing provides more accessible upgrade paths, encouraging repeat business.
• Competitive Edge: Attract buyers who might otherwise delay or abandon purchases.
• Boosted Average Order Value: Customers may opt for higher-spec products or additional upgrades when finance is available.

"Finance options can be the deciding factor for customers facing hefty boat engine upgrade costs."

Understanding Finance Options

There are several finance products suitable for boat engines and upgrades:

Choosing the Right Finance Product

Assess your customer base and average sale value. Higher price tags often work best with hire purchase or longer-term finance. Simple upgrades may benefit from short-term interest-free credit.

Legal and Regulatory Considerations

"You must be authorised by the Financial Conduct Authority (FCA) or offer finance via an FCA-regulated broker."

• FCA Authorisation: Required for offering consumer credit in the UK.
• Disclosure Requirements: Explain terms, costs, and obligations clearly to customers.
• Compliance: Stay up to date with regulations; regular audits may be required.

Getting FCA Approved

1. Apply through the FCA Connect portal.
2. Pass fit-and-proper tests for directors and senior managers.
3. Demonstrate robust processes for treating customers fairly.

Callout:
UK marine businesses can partner with approved finance brokers like Kandoo to bypass lengthy direct FCA applications.

Partnering With a Finance Broker

Working with a retail finance broker streamlines customer credit solutions. Here’s how the process typically looks:

1. Select a broker specialising in marine and leisure products.
2. Integrate applications into your sales process—online, in-store, or both.
3. Promote finance across digital and physical channels.
4. Support customers through application, approval, and completion.

"A reputable broker handles the heavy lifting—credit checks, application processing, and compliance."

Implementing Finance at Point of Sale

• Display finance availability at key touchpoints (website, showrooms, quotes)
• Train your team to explain finance features and benefits
• Simplify the application process, ideally digital-first
• Follow clear post-sale support processes

Example: Customer Journey

1. Enquiry: Customer interested in a new outboard engine.
2. Quote & Finance Introduction: Staff explains finance options for a £4,500 upgrade.
3. Application: Customer completes finance application through broker portal.
4. Approval & Purchase: On approval, installation is scheduled and payment settled between broker and business.
5. Repayment: Customer enjoys their upgrade, paying manageable monthly amounts.

Benefits for Marine Businesses

• Predictable cash flow – receive full payment upfront from the broker
• Reduced risk of bad debt or default
• Enhanced sales conversion rates
• Stand out as an accessible, customer-friendly supplier

Quick Tips for Promoting Finance

• Highlight finance in all advertising and at the point of sale
• Use honest, transparent language – avoid small print surprises
• Advertise typical repayments (e.g., “From £75/month”)
• Offer finance training for frontline sales staff
• Monitor uptake and adjust offerings according to customer feedback

"Transparency builds trust. Clear communication about costs is vital for both compliance and customer satisfaction."

Conclusion and Next Steps

Getting started with customer finance is easier than ever—especially with broker partnerships. For marine retailers, it opens new revenue streams, builds loyalty, and puts high-value upgrades within reach for more customers.

Ready to transform your marine business?

• Review finance eligibility requirements
• Connect with an FCA-authorised finance broker
• Train your team and begin promoting flexible payment options today

**Contact Kandoo for expert guidance and a tailored finance solution."