How to Offer Finance for High-End Appliances

Introduction to Customer Finance for Appliances

High-end washing machines and dryers represent a significant investment for most households. Given their price, many UK customers look for flexible payment options. Offering finance not only makes these appliances more accessible but can also boost sales, attract new customers, and set your business apart from competitors.

"Finance options can turn price barriers into sales opportunities for premium appliances."

Why Offer Finance on High-End Laundry Appliances?

• Increase Conversion Rates: Customers are more likely to purchase if they can spread the cost.
• Higher Average Order Value: Finance can enable upselling to premium models with advanced features.
• Enhanced Customer Loyalty: Flexible payment terms improve customer satisfaction and return rates.
• Competitive Edge: Stand out against retailers not offering finance.

Choosing the Right Finance Products

There are several finance products suitable for offering on high-end washers and dryers:

Legal and Compliance Essentials in the UK

To legally offer finance to customers, you must:

1. Work with an FCA-Authorised Broker or Lender: Either obtain FCA authorisation or partner with a regulated broker like Kandoo.
2. Advertise Finance Responsibly: Clear communication of terms, representative examples, and APRs are mandatory.
3. Follow GDPR: Handle all credit application data securely.
4. Give Pre-Contract Information: Customers must receive full terms before signing.

"Responsible lending and compliance are non-negotiable for retail finance in the UK."

Partnering With a Finance Broker

Most retailers partner with a broker to simplify access to multiple lenders. Benefits include:

• Streamlined setup and compliance support
• Access to a panel of lenders and tailored products
• Integration options for in-store and online sales

Highlight: Kandoo specialises in supporting UK retailers with bespoke finance packages for white goods and high-end appliances.

The Customer Journey: Finance in Practice

1. Promotion: Display finance options online, in-store, and in sales materials.
2. Eligibility Checks: Simple online or face-to-face applications.
3. Quote & Application: Customer sees repayment amounts and applies.
4. Decision: Most lenders give instant decisions.
5. Completion: Paperwork is done digitally; the sale is finalised once funds are approved.

Example

Sarah wants a £2,000 washing machine:

• She sees a 24-month, 9.9% APR offer
• Monthly repayment: £91.80 (approximate)
• Applies online, gets approval in minutes, completes purchase the same day

Marketing Your Finance Offering

• Use banners: "Spread the Cost on Premium Appliances!"
• Include finance calculators on product pages
• Train sales team to discuss finance confidently
• Send follow-up emails to customers who abandoned their carts

Key Considerations and Best Practices

• Accurately present the total cost of credit
• Only offer finance to customers who can afford repayments
• Update staff training on finance products and regulations
• Regularly review commission arrangements with brokers/lenders

Tip: Always display an indicative example: "Representative 12.9% APR, based on a purchase of £1,500."

Conclusion

Offering customer finance for high-end washing machines and dryers is a powerful tool for UK retailers. Done right, it opens up premium sales opportunities while providing great value and affordability for your customers.

Ready to take your retail business to the next level with finance?

Contact Kandoo to discover how we can help you set up a tailored finance solution.