How To Offer Finance For Kitchen Installations

What customer finance really means at the point of sale

Offering customer finance means giving homeowners a way to pay for a kitchen in manageable instalments, while you still sell the same project with the same design standards. In practice, it reduces the number of customers who love the plan but hesitate at the final figure. With UK kitchen renovation costs now commonly landing in the £10,000 to £20,000 range and a reported median around £17,500, finance moves from a “nice-to-have” to a commercial tool that helps keep your pipeline flowing. The best programmes feel simple to the customer and low-friction for your team, with clear terms, sensible affordability checks, and a choice of repayment styles.

Understanding APR is not just about percentages. It is about what customers will pay in real terms, month by month.

Standout line: If a kitchen quote feels like a lump sum, finance can turn it into a decision.

Why homeowners lean on finance for kitchens

Kitchens are rarely a single purchase. Customers are typically buying cabinetry, worktops, appliances, delivery, and installation, and sometimes additional building work. Even when labour is only part of the budget, it can still be significant, with day rates often quoted in the £250 to £350 range and labour totals commonly around a few thousand pounds for a full project. That combination makes cash flow the issue, not desire. Many customers can afford the kitchen, just not all at once, or not without compromising on finish, storage, or appliances. Finance also helps when timing matters, for example when moving home, managing a growing family, or dealing with a failed kitchen that cannot wait.

How finance helps you sell more, not just sell differently

Finance tends to lift conversion because it removes the need for a customer to choose between “the kitchen they want” and “the kitchen they can pay upfront”. In the UK market, national brands and larger retailers routinely promote long 0% interest-free periods, buy-now-pay-later structures, and low-APR pay monthly plans. Customers see these offers and expect similar flexibility elsewhere. When you provide a clear menu, you reduce delays, protect margin (fewer discount requests), and often increase average order value because upgrades feel affordable on a monthly basis. Trade-focused commentary in the sector consistently points to finance as a lever for higher-spec choices and smoother project progression.

Quick benchmarking mindset

Think in three lanes: short-term 0% to remove price friction, longer-term 0% where margins allow, and pay monthly APR options to support bigger totals where 0% is not viable.

Typical transaction values (UK kitchens)

What you can put through finance

1. Full kitchen supply and installation packages

2. Supply-only kitchens (units, doors, panels, fittings)

3. Worktops (laminate, quartz, granite, ceramic)

4. Appliances and appliance bundles

5. Flooring linked to the kitchen project

6. Electrical and plumbing works within scope

7. Lighting, extraction, and ventilation upgrades

8. Painting, plastering, and making-good as part of the job

FCA and compliance: the essentials to get right

If you introduce customers to finance, you need to treat it as a regulated activity and ensure the way you promote it is fair, clear, and not misleading. That includes presenting representative examples carefully, avoiding pressure-selling, and making sure customers understand interest-free periods, deferred payment features, and what happens at the end of any promotional window. You should also be clear about deposits, eligibility, and that lending is subject to status and affordability checks.

Introducer and broker models: how they work in the real world

Most kitchen businesses do not want to become a lender. Instead, they act as an introducer and work with a broker who can source finance from suitable lenders. The broker model is designed to keep the customer experience smooth while supporting the compliance framework and application process. In practical terms, you present finance as an option, capture the right information, and the broker platform handles the application journey, decisioning, and lender selection based on the customer profile and the product being offered. This also helps you offer more than one finance route, for example interest-free credit for customers focused on total cost, and pay monthly APR plans for those who want longer terms.

A useful way to explain it to customers

“We can help you spread the cost. You choose the kitchen, then you can apply for a monthly plan that suits your budget, subject to checks.”

What the customer journey typically looks like (step by step)

1. Quote and design sign-off: confirm the final scope, total price, and timelines.

2. Introduce finance early: present monthly examples alongside the total, so the customer frames affordability correctly.

3. Choose a plan type: interest-free credit, buy-now-pay-later, or pay monthly APR.

4. Customer applies: online, in-showroom, or by phone, depending on the setup.

5. Decision and agreement: approval, credit agreement review, and confirmation of key terms.

6. Deposit and order placement: take any required deposit and schedule survey, delivery, and install.

7. Installation and completion: fulfil the project as agreed.

8. Ongoing payments: customer repays the lender under the agreement, and you focus on delivery and service.

Next-step suggestions for your sales team

• Add a “from £X per month” example to every quote above £10,000.

• Offer two to three options rather than one, so customers can self-select.

• Build a simple script that explains APR and total repayable in plain English.

Getting started with Kandoo

Kandoo is a UK-based retail finance broker, which means we help you offer customer finance without you needing to become a lender. The aim is straightforward: make it easier for customers to say yes to the kitchen they want, while keeping the process clear, compliant, and customer-friendly. Once you are set up, you can present finance as part of your normal quoting process, support customers through an application journey, and give them repayment options that reflect how UK kitchen buyers already shop, including interest-free credit periods and pay monthly plans. If you want to compete with the expectations set by major brands, a broker-led approach can help you do it with structure rather than guesswork.

FAQs

What finance options do UK kitchen customers expect to see?

Many shoppers now recognise three common patterns: interest-free credit for a fixed period, buy-now-pay-later offers with an initial deferral, and standard pay monthly plans with an APR. Having a small menu helps you meet different budgets.

How long can interest-free credit run for in the kitchen market?

Major retailers have promoted interest-free periods that can extend for several years on selected ranges, and some offers run up to 7 years on higher-end products. Your available terms depend on the lender criteria and the offer structure you choose.

What is buy-now-pay-later and when does it work best?

Buy-now-pay-later typically means the customer pays little or nothing for an initial period and then starts repayments later, often with interest. It can suit customers expecting future funds, but it must be explained clearly so they understand the cost of borrowing.

Can finance increase average order value?

Yes. When customers can spread the cost, they are often more willing to upgrade worktops, appliances, and storage solutions. The monthly framing reduces the pressure to strip back the specification.

Do I need to be FCA authorised to offer finance?

If you are introducing customers to regulated finance, you need the right regulatory permissions or an appropriate arrangement through a regulated partner. The exact setup depends on your model and role in the process.

How should I explain APR to a customer without overwhelming them?

Keep it practical: show the monthly payment, the term, and the total repayable. If there is a 0% period or a deferral, explain what changes after that point and whether interest applies.

Does offering finance slow down the sales process?

Done well, it often speeds it up. Clear options can prevent weeks of hesitation after a quote. Many applications can be completed quickly, with decisions delivered promptly depending on the lender and customer details.

Can I offer finance for supply-only as well as installation?

In many cases, yes. Finance can be used for supply-only kitchens, installation-inclusive packages, and related items such as appliances and worktops, as long as the proposal is structured appropriately.