How To Offer Finance For Electrical Retailers

The role of customer finance on your shop floor and online

Customer finance is simply a way for shoppers to spread the cost of higher-ticket electricals, while you receive payment (usually in full, upfront) through a lender-funded solution. For electrical retailers, it has become less of a niche add-on and more of a checkout expectation, particularly as digital wallets and embedded instalments make payment choice feel seamless. The commercial case is straightforward: if you can present a clear monthly price alongside the cash price, you reduce price shock and keep customers moving towards purchase rather than postponing it.

Standout thought: The real competitor is often “I’ll think about it”, not the shop down the road.

Why finance fits how customers buy electricals

Electrical purchases are often need-driven (a failed washing machine) or aspiration-driven (a bigger TV, a better laptop). Either way, the upfront cost can be the main barrier, especially when households are cautious about discretionary spending. Market research shows most UK consumers still expect to buy new electricals, and many plan to use credit or instalment plans for larger items in the year ahead. At the same time, BNPL volumes continue to grow rapidly, with forecasts pointing to around 25% annual growth through 2026, reflecting how normalised instalments have become across online and in-store checkout.

How finance turns browsers into buyers

Offered well, finance can improve conversion by aligning the payment plan with the customer’s budget rather than forcing an all-or-nothing decision. Point-of-sale instalment loans are particularly effective on big-ticket appliances and home entertainment, where presenting an indicative monthly cost early (for example on product pages and ticketing) reduces drop-off at checkout. You can also use finance to support premium mix: flexible payments lower the perceived risk of stepping up to higher-spec models, bundles, or add-ons such as installation and extended warranties. With interest rates making customers more sensitive to total cost, transparent terms and clear APR messaging matter more than ever.

Typical basket sizes in electrical retail

What you can offer finance on

1. Washing machines, tumble dryers and dishwashers

2. Fridge freezers and American-style refrigeration

3. TVs, soundbars, speakers and home cinema bundles

4. Laptops, PCs, monitors and gaming setups

5. Cookers, hobs and extractor installations

6. Installation, delivery and recycling services

7. Extended warranties, care plans and accidental damage cover

8. Refurbished, graded and certified pre-owned electricals

9. Trade-in upgrades (where the financed amount is net of the trade-in value)

FCA responsibilities: keep it clear, fair and consistent

If you introduce customers to a lender, you must ensure financial promotions are clear, fair and not misleading, and that key information such as APR, term, and any deposit requirements is presented transparently. Eligibility and affordability checks must be handled appropriately, with customer data treated securely. In a higher-rate environment, it is especially important to show total cost clearly and avoid over-emphasising low monthly payments without context. Your team should know what they can and cannot say when discussing credit.

Introducer and broker models, explained in plain English

Most electrical retailers do not want to become lenders. Instead, they act as an introducer, or work with a broker, to connect the customer to a regulated lender that provides the credit decision and funding. In practice, the retailer promotes finance at key points (product page, ticketing, checkout, in-store point-of-sale), and the broker and lender handle the application journey, underwriting, and regulatory requirements. The benefit is speed and simplicity: you gain a wider range of finance options without building a credit operation in-house, while customers get a choice of terms that match purchase size and budget.

What a great customer journey looks like (step by step)

1. Show finance early: Display “from £X per month” alongside the cash price on PDPs, shelf-edge labels, and quote sheets.

2. Set expectations: Make it clear that finance is subject to status, with representative examples where appropriate.

3. Let customers choose: Offer a small set of understandable options (for example, pay in 3-12 for smaller baskets, 12-48 for higher-ticket items).

4. Pre-qualify where possible: Use a lightweight, customer-friendly approach to reduce surprises at checkout.

5. Apply at the right moment: Keep the application close to intent, typically at basket/checkout or assisted in-store.

6. Confirm the deal: Once approved, confirm the exact terms, total repayable, and any deposit.

7. Complete the sale: You fulfil the order as normal, with clear delivery and returns messaging.

8. Support after purchase: Provide a single, simple route for questions, including who to contact about repayments (usually the lender).

Quick win: Put finance options on your top 20 revenue-driving SKUs first, then roll out across the range.

Getting set up with Kandoo

Kandoo helps UK retailers offer customer finance in a way that is clear, compliant, and designed to convert, without slowing the checkout. We work with you to understand your typical basket values, the products you want to prioritise (new, premium, refurbished, or all three), and the customer profiles you serve. From there, we can support the right finance mix, the on-site messaging that makes monthly costs easy to understand, and the practical steps for integrating finance into your online and in-store journeys. The aim is simple: a finance offer that feels like part of your brand experience, not an awkward bolt-on.

FAQs

What is the difference between BNPL and a point-of-sale loan?

BNPL usually refers to short, fixed instalment plans with a fast checkout experience, often for smaller to mid-sized purchases. A point-of-sale loan is typically a regulated credit agreement with longer terms suited to higher-ticket items, with clearer disclosure of APR and total repayable.

Do I get paid upfront if a customer uses finance?

In most retail finance setups, the lender pays you (less any agreed fees) and the customer repays the lender over time. Exact settlement timing depends on the provider and agreement.

Will offering finance increase my approval rate for all customers?

Finance can improve conversion, but approvals depend on lender criteria and affordability checks. You can reduce friction by presenting realistic options, using pre-qualification where available, and ensuring customers understand the basics before applying.

How should I display “from £X per month” pricing?

Use it where it supports decision-making: product pages, category listings for high-ticket items, and in-store ticketing. Ensure the example is accurate, includes key assumptions (term, deposit if any), and is presented clearly.

Can I offer finance on refurbished and graded stock?

Yes. Refurbished electricals are increasingly popular across income levels, and offering instalments can help position refurbished items as a premium, low-waste alternative rather than a compromise.

What about card fees and alternative payments?

Alongside cards, many retailers are adding digital wallets for speed and reduced abandonment. Account-to-account payments via Open Banking are also emerging as a lower-fee route for certain journeys, particularly repeat payments.

Do my staff need training?

They should be comfortable explaining the options at a high level and know when to direct customers to the application flow. The key is consistency: clear, fair explanations without improvising on credit terms.

What is a sensible starting point for an electrical retailer?

Start with your highest-converting, highest-margin categories (often TVs, large appliances, and computing). Add clear monthly examples, keep the application steps tight, and review performance by SKU and basket size.

Banner image concept: A modern UK electrical retailer showroom with a family viewing a large TV and a washing machine. At the checkout, a tablet displays clear BNPL and monthly payment options, with warm lighting and a subtle “Finance available” sign in the background.