How To Offer Finance For Electrical Retailers

Customer finance, explained in retail terms

Customer finance lets your shoppers spread the cost of higher-value electricals into manageable monthly payments, while you receive payment from the lender in line with the agreed merchant terms. In practice, it turns a large one-off decision into a predictable budget choice, which matters when customers are weighing up premium TVs, appliances or bundles. With cash use continuing to fall and digital payments becoming the default, finance increasingly sits alongside cards and wallets as part of a modern checkout mix. For many electrical retailers, the commercial benefit is simple: you protect margin on premium lines without relying solely on discounting, and you give customers a credible way to buy the better option now.

Why customers choose finance for electricals

Electrical purchases are often planned but still price-sensitive, especially when households face competing bills. Flexible payment options reduce the immediate cost barrier, making it easier for customers to justify better specifications, longer warranties, or complete kitchen and home entertainment setups in one go. The UK market has also become more comfortable with instalment options at checkout, with Buy Now, Pay Later growing quickly and increasingly offered by mainstream providers, not just specialist fintechs. Add the expectation of fast digital journeys, and customers now look for payment choice as part of good service, not a special favour.

The sales lift: where finance changes outcomes

Offering finance can improve conversion by helping customers who would otherwise delay, downsize, or abandon the basket at the final price moment. It can also raise average order value by making add-ons feel attainable: installation, removal of old appliances, accessories, and extended cover are easier to accept when priced monthly. This is particularly relevant in electrical retail, where premium demand is supported by instalment options even during cautious spending periods. A well-presented finance message at product and checkout level also helps you compete with online marketplaces that already normalise pay-monthly options.

Standout line: If customers can compare specifications, they will compare payment options too.

Typical transaction values in electrical retail

What you can put on finance (examples)

1. Large-screen TVs and wall-mount installation

2. Premium fridge freezers and American-style models

3. Washing machines, tumble dryers and washer-dryers

4. Ovens, hobs and cooker hood bundles

5. Laptops, gaming PCs, monitors and peripherals (as a bundle)

6. Home audio, soundbars and speaker systems

7. Smart home devices and multi-room setups

8. Extended warranties, accidental damage cover and servicing plans (where permitted)

9. Delivery, recycling and removal services when packaged with the main purchase

Regulation and doing it properly

In the UK, retail finance involves FCA rules that are designed to protect customers and ensure promotions are clear, fair and not misleading. You need to present key information such as the cost of credit, representative APR where applicable, and any fees in a way customers can understand before they commit. Lenders will typically require affordability and identity checks, and your processes should support strong customer authentication and fraud prevention. Staff training, compliant marketing wording, and good record-keeping are essential.

Broker and introducer models: how they work in practice

Most electrical retailers do not become a lender. Instead, you introduce the customer to a finance provider through a broker or platform, and the lender makes the credit decision. The introducer model keeps your role focused on retailing while allowing customers to apply quickly at checkout, often with instant decisioning. A good broker setup also helps you offer a sensible range of products such as instalment credit and point-of-sale loans, aligned to different basket sizes and customer needs. Commercially, you typically agree how applications are routed, how settlements work, what reporting you receive, and how customer support is handled across the retailer, broker and lender.

A clear customer journey (step by step)

1. Product page or in-store quote: Show an indicative monthly cost alongside the cash price (where rules allow) and make terms easy to find.

2. Basket review: Reinforce finance availability for the full basket, including eligible add-ons.

3. Choose payment method: Customer selects finance, BNPL (if offered), card, wallet, or bank transfer options.

4. Application start: Customer completes a short application on a secure flow, typically on mobile or tablet.

5. Verification and checks: Identity, fraud and affordability checks are completed by the lender.

6. Decision: Customer receives an approval/decline or alternative offer, with clear terms and repayments.

7. Agreement and confirmation: Customer accepts the credit agreement and receives confirmation documents.

8. Fulfilment: You deliver or hand over goods as usual, with the finance reference tied to the order.

9. After-sales support: Clear signposting for payment queries (lender) versus product issues (retailer).

Getting started with Kandoo

Kandoo helps UK retailers offer customer finance in a way that is straightforward for your team and clear for your customers. The first step is to map your typical basket sizes and decide which finance options best match them, from shorter instalments to longer-term point-of-sale loans for premium bundles. We then help you shape compliant messaging, integrate finance into your online and in-store journeys, and set up reporting so you can see performance by product category and channel. The aim is a friction-light experience that supports digital wallets and modern checkout expectations while keeping the decisioning and credit risk with the lender.

Next steps you can take this week:

• Review your top 20 products by revenue and identify where monthly pricing would reduce price resistance.

• Add finance prompts at two points: product page and basket, not just at payment.

• Prepare staff scripts for explaining APR, term length and total payable in plain English.

FAQs

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

BNPL is typically shorter-term, often designed for smaller baskets and quicker repayment. Point-of-sale finance usually involves a regulated credit agreement over a longer term, suited to higher-value electricals and bundles.

Will offering finance increase my approval rates?

Approvals depend on the lender and the customer’s circumstances, but offering a choice of terms and products can help match more customers to a suitable option, improving overall conversion.

Do I get paid upfront if a customer uses finance?

In most setups, the lender pays you according to the agreed settlement terms once the agreement is in place, so you can fulfil the order without waiting for monthly instalments from the customer.

Can I show “from £X per month” on product pages?

Often yes, but it must be presented compliantly, with the right supporting information available before the customer commits. The exact requirements depend on the product and how the promotion is displayed.

Does finance work in-store and online?

Yes. Many retailers run an omni-channel approach so customers can browse online, apply on mobile, or complete in-store with a colleague on a tablet, using the same lender decisioning.

What about card fees and alternative payment methods?

Card and wallet payments are popular in the UK, but they can carry processing costs. Some retailers are also exploring account-to-account payments for certain use cases to reduce fees, while keeping finance options for larger-ticket purchases.

Can refurbished or second-hand electricals be financed?

It depends on the lender’s criteria and how the goods are sold, but there is growing consumer interest in refurbished electricals. Some retailers combine trade-in or upgrade propositions with finance to make switching easier.

How long does implementation take?

Timescales vary by your channels and requirements, but a focused rollout can be achieved quickly when product selection, customer messaging, and checkout placement are agreed early.