How to Offer Finance for High-End Instruments

The Appeal of Finance for High-End Musical Instruments

High-end musical instruments—from grand pianos and premium synthesizers to top-tier guitars—represent significant investments. For many customers, finance options transform an unaffordable dream into an attainable purchase.

Why consider offering finance?

• Increases affordability, which can lead to higher sales volumes
• Attracts a broader range of customers, including aspiring musicians and professionals
• Improves customer satisfaction by breaking down barriers to purchase

"Offering finance can be the difference between a walkaway and a lifelong customer." – Retail Specialist

Key Benefits for Retailers

• Larger Average Order Values: Finance options encourage customers to consider more premium products.
• Reduced Price Objections: Spreading payments lowers sticker shock, making closing the sale easier.
• Competitive Advantage: Stand out against competitors who only offer upfront payments.

What You Need to Get Started

Before launching finance options for your customers, several foundations must be put in place:

1. Partner With a Finance Broker or Lender

• Choose a reputable UK-based provider experienced in retail finance.
• Ensure they offer solutions suitable for large-ticket items (often £1,000–£20,000+).

1. FCA Authorisation (if required)

• Understand your legal obligations: offering regulated credit agreements in the UK may require FCA authorisation unless you qualify for specific exemptions.
• Check the rules: FCA guidelines for retailers

1. Update Point of Sale System

• Integrate finance application processes—both online and in-store.

1. Staff Training

• Train your team on finance product features, application processes, and compliance with rules.

Common Finance Products for High-End Instruments

Not all finance options are created equal. Popular choices include:

"For instruments over £2,000, consider offering both interest-free and classic credit options. This flexibility appeals to both new and experienced musicians."

Application and Approval Process

Here's how the finance journey typically unfolds for customers:

1. Finance Selection

• Customer chooses their preferred finance plan.

1. Credit Assessment

• Application submitted directly or via you (the retailer).
• Fast automated checks (sometimes within minutes!).

1. Agreement Signing

• Digital or paper contracts signed.

1. Instrument Release

• After approval, the customer receives their instrument; you get paid by the provider.

Tips to Improve Acceptance Rates

• Make sure customers are UK residents and over 18
• Encourage accurate, up-to-date information on applications
• Offer different finance options to appeal to varied credit backgrounds

Legal and Compliance Considerations

• Display annual percentage rates (APRs), representative examples, and relevant terms clearly
• Ensure marketing is clear, fair, and not misleading—it’s a legal requirement
• Only use approved promotional materials supplied by your broker or lender
• Provide customers with pre-contractual information before they sign

Highlight: Your Finance Partner Matters

A knowledgeable finance broker, like Kandoo, can:

• Guide you through compliance
• Offer a range of leading lenders
• Help tailor packages for high-value musical sales

Maximising Sales With Finance

• Promote finance options at every customer touchpoint:
• Price tags (online and in-store) with monthly payment examples
• Website banners and product pages
• Social media posts and email campaigns
• Use testimonials:
• Display quotes from satisfied customers who used finance to buy their dream instrument
• Cross-sell accessories:
• Offer customers the option to include cases, stands, and servicing bundles within their finance deal

Pull Quote:
"Transparent finance marketing and helpful staff demystify the purchase, making customers feel secure in their investment."

Challenges and Best Practices

While finance can open doors, be aware of these pitfalls and solutions:

• Declined applications: Always offer alternative payment suggestions and clarify next steps with empathy.
• Complex paperwork: Use digital solutions wherever possible to streamline processes for customers.
• Staff misunderstanding: Keep training up-to-date and lean on your finance broker for regular updates and refresher sessions.

Next Steps: Start Offering Finance Today

Ready to enhance your musical instrument retail offering?

• Contact a reputable finance broker (like Kandoo) to discuss your product range and customer profile.
• Review compliance requirements and update your marketing material.
• Train your team so they’re finance champions.

Providing finance could transform your sales environment and help more musicians realise their dreams. Don’t let the opportunity pass by!