How To Offer Finance For Large Customer Purchases

The case for customer finance at higher ticket sizes

Customer finance is simply a way to let shoppers spread the cost of a larger purchase while you still get paid, typically upfront, by a lender. For many UK retailers, it has moved from “nice to have” to a commercial lever that protects margin and keeps you competitive at checkout. Buy Now Pay Later is now a meaningful share of UK online and in-store point-of-sale spend and is projected to keep growing through the decade, which tells you something important: instalments are becoming a normal way to pay, not a niche option. If you sell products where customers pause, compare, and often delay purchase to save up, finance can turn intent into action without relying on discounting.

Why shoppers choose instalments (and it is not just affordability)

Customers use finance to manage cash flow, reduce the sting of a single large payment, and feel more in control of budgeting. UK consumer behaviour has become more cautious, with more people deliberately saving for big purchases and a clear preference for familiar, trusted brands. That combination matters: shoppers want flexibility, but they also want reassurance that the provider, the terms, and the merchant are credible. BNPL is also popular with younger customers who value speed and simplicity, and increasingly it appeals to higher earners as a convenience tool, particularly for devices and premium purchases. In other words, instalments can be positioned as a smarter way to pay, not a last resort.

How finance can lift conversion and average order value

Offering finance can increase sales in three ways: it reduces abandonment at the point where a customer hesitates, it makes higher-spec options feel attainable, and it enables larger baskets without immediate budget trade-offs. UK point-of-sale finance research has shown that when shoppers can spread costs over 12 monthly instalments, average order values can rise dramatically in big-ticket categories such as technology, electronics, sporting equipment and jewellery. Some retailers also see meaningful conversion uplifts when BNPL is embedded directly into checkout, supported by real-time, AI-driven underwriting that returns decisions in seconds. The commercial message is straightforward: flexible payments can unlock demand that already exists, especially during peak retail periods when customers are weighing multiple competing purchases.

Understanding APR is not just about percentages - it is about knowing what your customer will pay in real terms. The clearer you are, the more confident they become.

Typical transaction values (what tends to work well)

Examples of what you can finance

1. Premium laptops, TVs, and home entertainment systems

2. Smart home bundles (security, heating, energy monitors)

3. Bicycles, e-bikes and fitness equipment

4. Jewellery and watches

5. Garden rooms, sheds, and outdoor living sets

6. Dental, cosmetic and elective healthcare treatments

7. Home improvement installations (windows, doors, boilers)

8. Professional equipment for trades (tools, machinery, vans accessories)

FCA and compliance: what to get right early

In the UK, how you promote and introduce finance matters as much as the finance product itself. Depending on the agreement type and your role, you may need to be an appointed representative or act as an introducer under an authorised firm. Financial promotions must be fair, clear and not misleading, and key information such as total amount payable, APR (where relevant), and any fees should be presented prominently. Build in privacy and consent steps for applications, avoid pressuring customers, and ensure staff understand the boundary between explaining options and giving advice.

Broker and introducer models (in plain English)

With a broker or introducer set-up, you are not becoming a lender. Instead, you offer customers a route to apply for finance through one or more lenders, usually via a digital application flow. In an introducer model, you may pass the customer to a finance partner and receive a commission if they take finance, while the lender handles underwriting, documentation and regulated processes. In a broker-led model, a finance broker can help you access a panel of lenders, match customers to the right product, and support you with compliant marketing assets and training. Practically, the benefit is choice and resilience: if one lender declines or has tighter criteria, an alternative may still fit the customer.

What the customer experience should look like

1. Show finance early: display “from £X per month” on product pages, quotes, and in-store POS to anchor affordability.

2. Let customers explore: offer a simple calculator with term examples and a clear representative example where required.

3. Choose the route: the customer selects BNPL or longer-term finance depending on basket size and preference.

4. Complete the application: they enter basic details and consent to checks; decisions are typically returned quickly.

5. Confirm the agreement: the customer reviews terms, total cost, and repayment schedule before e-signing.

6. You fulfil as normal: once approved, you proceed with delivery or installation as per your usual process.

7. Aftercare and service: your customer service handles product queries; the lender handles payment servicing and statements.

Short standout line:

If customers have to hunt for finance, many will leave to find it elsewhere.

Next-step suggestions:

• Add monthly price messaging to your top 20 revenue-driving SKUs.

• Train staff on three phrases: how it works, what it costs, where to apply.

• Review your checkout flow to ensure finance is not hidden behind multiple clicks.

Getting started with Kandoo

Kandoo is a UK-based retail finance broker, so our role is to help you offer finance in a way that fits your products, your customers, and your sales process. We start by understanding your average basket size, peak periods, fulfilment model (online, in-store, or both), and the customer profile you serve. From there, we help you choose suitable finance options, support you with compliant customer-facing messaging, and guide you through implementation so finance feels like a natural part of checkout rather than an awkward add-on. The aim is simple: increase conversion and average order value while keeping the experience transparent, fast and trustworthy.

FAQs

What is the difference between BNPL and instalment credit?

BNPL is usually short-term and designed for speed, often with interest-free options. Instalment credit tends to cover higher values over longer terms and may carry interest, shown as an APR and total amount payable.

Will offering finance slow down checkout?

It should not. Many providers use automated, real-time underwriting that can deliver decisions in seconds, which helps reduce abandonment rather than add friction.

Do customers only use BNPL because they cannot afford the purchase?

Not necessarily. BNPL is used as a budgeting and convenience tool, including by higher-income shoppers for device purchases and other premium items.

How can finance increase my average order value?

When customers can spread payments over time, they are more likely to choose higher-spec products or add accessories. UK research has shown very large uplifts in average order values in categories like technology and electronics when 12-month instalments are available.

Do I need FCA authorisation to offer finance?

It depends on the product type and your role. Many merchants operate as introducers or as an appointed representative of an authorised firm. The key is to ensure promotions and processes are compliant.

Can I offer finance online and in-store?

Yes. A good set-up supports both, with consistent messaging and a smooth application flow. It is also worth ensuring your payments infrastructure can accept instalment-enabled cards and similar pay-over-time features.

What should I display on product pages?

At minimum, clear “from £X per month” messaging, an example term, and signposting to key information. For regulated credit promotions, representative examples and other required disclosures may apply.

Is finance only worth it for very high-ticket items?

No. BNPL can perform well at lower values, while longer-term finance suits larger baskets. The best approach is to align product price points with the right finance type and term options.