How to Offer Finance for Exercise Bike Sales

Understanding Customer Finance for Exercise Bikes

The growing popularity of home fitness has made exercise bikes a coveted purchase. However, their upfront cost can be a barrier. By offering finance options, retailers can make these high-ticket items more accessible, leading to increased sales and customer satisfaction.

What is Retail Finance?
Retail finance (also known as point-of-sale finance) allows customers to spread the cost of their purchase over monthly payments, typically with a fixed interest rate or sometimes as interest-free credit.

Why Offer Finance?

• Boosts Sales: Removes price barriers, leading to larger average order values.
• Customer Satisfaction: Makes quality exercise bikes affordable to more people.
• Competitive Edge: Sets you apart from competitors who don’t offer finance.
• Quicker Purchase Decisions: Customers are less likely to delay or abandon their purchase.

"Offering finance isn’t just about affordability. It’s about making fitness accessible—and building lasting customer relationships."

Key Steps to Getting Started

1. Partner with a Retail Finance Broker: Work with a UK-authorised broker, such as Kandoo, who can connect you with appropriate lenders and manage the process seamlessly.
2. Understand Your Responsibilities: You’ll need to meet certain criteria and may require Financial Conduct Authority (FCA) authorisation or exemption.
3. Integrate Finance Options: Implement the broker’s system onto your website or POS so customers can apply for finance at checkout.
4. Train Your Team: Ensure sales and customer support teams can explain finance options clearly and compliantly.

Typical Eligibility Criteria for Customers

• Over 18, UK resident
• Meet lender’s credit checks
• Employment or proof of income
• Bank account for direct debit

Finance Options Commonly Available

Callout:
Having a mix of options (short-term, interest-free, and longer-term payment plans) will appeal to a wider range of customers.

Legal and Compliance Considerations

• FCA Regulation: Most finance agreements are regulated by the Financial Conduct Authority. If the loan terms are over 12 months or interest is charged, you may need FCA authorisation unless you qualify for exemption.
• Advertising Finance: Comply with ASA advertising standards. Clearly display representative APR, terms, and lender details.
• Data Protection: Handle customer data in line with GDPR requirements.

Marketing Your Finance Option Effectively

• Prominent Placement: Display finance availability on product and checkout pages.
• Clear Messsaging: Use easy-to-understand language—e.g., "Spread the cost of your new exercise bike from £20/month!"
• Integrated Calculator: Let customers preview different payment options.
• Staff Knowledge: Train staff to answer questions confidently and help customers apply.

Sample Finance Messaging:

"Get fit now, pay later: Interest-free finance available on all exercise bikes! Ask in store or see our website for details."

Frequently Asked Questions

How quickly do I receive my funds?
You typically receive full payment from the lender, minus a small commission, within a few working days of the customer’s finance agreement being activated.

Can all customers get finance?
Finance is subject to eligibility and credit checks by the lender.

Will offering finance cost my business?
Some finance products (like 0% interest) include retailer fees. Consider this cost when pricing, as increased conversion rates often offset the expense.

Tips for Success

• Promote finance options in-store and online
• Continuously update finance page FAQs
• Gather customer feedback to optimise the process
• Monitor finance sales data to understand trends

Pull quote: "Retailers who offer customer finance for exercise bikes report higher conversion rates and increased average transaction values."

Ready to Offer Finance to Your Customers?

Contact Kandoo to find out how easy it is to set up flexible finance solutions, tailored to exercise bike sales. Empower more customers to achieve their fitness goals while growing your business!

Discover customer finance the easy way—partner with Kandoo today!