Offer finance for a home furnishings business

Offer Finance for a Home Furnishings Business

The home furnishings industry is a competitive yet lucrative sector, with homeowners constantly seeking ways to improve and personalise their living spaces. Whether it’s through high-quality furniture, stylish décor, or modern appliances, there is no shortage of demand for home furnishings. However, despite the growing market, many customers may hesitate to make large purchases due to the upfront costs involved.

This is where offering finance options can make a significant difference to your home furnishings business. By providing customers with flexible payment plans, you can increase sales, improve customer satisfaction, and grow your business. In this article, we will explore the benefits of offering finance, how to implement it, and how Kandoo, a leading UK retail finance broker, can help.

Why Offer Finance in the Home Furnishings Industry?

The cost of home furnishings can add up quickly. From purchasing a new sofa set to replacing kitchen appliances, many customers find it difficult to pay for everything upfront. Offering finance allows your customers to spread the cost over a set period, making larger purchases more affordable. But the benefits of offering finance go beyond just helping customers manage their budgets.

1. Increased Sales

When customers have the option to pay in instalments, they are more likely to make larger purchases or buy more items than they originally planned. Finance options can make premium products more accessible to a wider audience, allowing you to upsell or cross-sell more effectively. This can lead to a significant increase in your average transaction value, helping your business grow.

2. Improved Customer Loyalty

Offering finance shows that you are committed to helping your customers make purchases in a way that suits their financial situation. By providing flexible payment options, you can build trust and create a more positive shopping experience. Customers who feel valued and supported are more likely to return to your store in the future, leading to increased customer loyalty and repeat business.

3. Competitive Advantage

In today's retail landscape, customers expect more than just quality products; they also want convenience and flexibility. Offering finance can give your business a competitive edge over other home furnishings retailers who do not provide such options. By meeting the needs of your customers, you can stand out from the competition and attract more buyers.

4. Cash Flow Management

While customers benefit from spreading the cost of their purchases, offering finance can also help your business manage its cash flow. Depending on the finance provider you partner with, you may receive the full payment upfront while the customer repays the loan over time. This ensures that you have the capital you need to keep your business running smoothly, even as customers pay off their purchases in instalments.

Types of Finance Options for Home Furnishings Businesses

There are several types of finance options that you can offer to your customers, each with its own advantages. Choosing the right finance option for your business will depend on your target market, the types of products you sell, and your overall business goals.

1. Interest-Free Credit

Interest-free credit allows customers to spread the cost of their purchase over a set period without incurring any additional charges. This is an attractive option for customers who want to manage their budget but are wary of paying interest on their purchases. Typically, interest-free credit is offered over a short-term period, such as 6 to 12 months.

2. Buy Now, Pay Later

Buy Now, Pay Later (BNPL) is a popular option in the retail sector. It allows customers to take their purchase home immediately and delay payments for a set period, usually 30 to 60 days. After the initial period, the customer can either pay the full amount or start making instalment payments. BNPL is particularly appealing to customers who need immediate access to home furnishings but want to delay payment.

3. Low-Interest Finance

Low-interest finance offers customers the option to spread the cost of their purchase over a longer period, usually 12 to 48 months, with a low-interest rate applied. This option is ideal for customers who want to make larger purchases and are comfortable paying a small amount of interest in exchange for the convenience of spreading the cost over a longer period.

4. Personal Loans

Personal loans allow customers to borrow a lump sum to finance their purchase and repay it over an agreed period, usually with interest. While personal loans are typically arranged directly between the customer and the lender, offering this option through a retail finance broker can provide your customers with access to competitive loan rates and flexible terms.

How to Implement Finance Options in Your Home Furnishings Business

Implementing finance options in your home furnishings business is easier than you might think, especially when you partner with a reputable retail finance broker like Kandoo. Below are the steps to get started:

1. Choose a Finance Provider

The first step in offering finance is to choose a finance provider or broker. Retail finance brokers like Kandoo specialise in helping businesses offer flexible payment options to their customers. Kandoo works with a wide network of lenders, allowing them to offer competitive rates and tailored solutions that meet the needs of both your business and your customers.

2. Set Up a Seamless Application Process

Once you have partnered with a finance provider, you will need to set up an application process that is easy for customers to navigate. This can be done online, in-store, or both, depending on your business model. A seamless and user-friendly application process will encourage more customers to take advantage of your finance options.

With Kandoo, the application process is straightforward. Customers can apply for finance online in just a few minutes, and Kandoo will match them with the best lender for their needs. This takes the pressure off your business and ensures that your customers receive a fast and efficient service.

3. Train Your Staff

Your sales team plays a crucial role in promoting finance options to customers. Make sure your staff are well-trained and knowledgeable about the finance options you offer. They should be able to explain the benefits of financing and answer any questions customers may have.

Kandoo can provide support and guidance to help you train your staff effectively. By empowering your team with the right knowledge, you can ensure that they are confident in discussing finance options with customers and closing more sales.

4. Promote Finance Options to Customers

Once your finance options are in place, it's important to promote them to your customers. Highlight the availability of finance in your marketing materials, on your website, and in-store. You can also offer special promotions, such as interest-free credit for a limited time, to encourage customers to take advantage of your finance options.

Kandoo offers marketing support to help you promote finance to your customers. From website banners to in-store signage, Kandoo can provide you with the tools you need to make your finance options visible and appealing.

The Role of Kandoo in Helping Home Furnishings Businesses Offer Finance

Kandoo is a leading retail finance broker in the UK, specialising in helping businesses offer flexible finance options to their customers. By partnering with Kandoo, your home furnishings business can benefit from a range of advantages:

1. Access to a Wide Range of Lenders

Kandoo works with a wide network of trusted lenders, allowing them to offer competitive rates and tailored finance solutions. Whether your customers are looking for interest-free credit, low-interest finance, or personal loans, Kandoo can match them with the right lender to meet their needs.

2. Simple Application Process

Kandoo's online application process is quick and easy for customers to complete. Once a customer applies for finance, Kandoo will match them with the best lender and provide a decision within minutes. This streamlined process helps reduce friction at the point of sale, making it easier for customers to complete their purchase.

3. No Risk to Your Business

One of the key benefits of partnering with Kandoo is that there is no financial risk to your business. Kandoo handles the entire finance process, from matching customers with lenders to managing repayments. This means that you receive full payment upfront, while Kandoo takes care of the rest.

4. Dedicated Support and Training

Kandoo provides ongoing support to help you implement and promote finance options in your business. From staff training to marketing materials, Kandoo is there to ensure that you make the most of your finance offering.

Conclusion

Offering finance for a home furnishings business is a powerful way to increase sales, improve customer satisfaction, and gain a competitive edge. By providing flexible payment options, you can make it easier for customers to afford high-quality furnishings and create a more positive shopping experience.

Partnering with a retail finance broker like Kandoo makes it simple to implement finance options in your business. With access to a wide range of lenders, a seamless application process, and dedicated support, Kandoo can help your home furnishings business thrive.

Incorporating finance into your business strategy is not just about increasing sales – it’s about building long-term relationships with your customers and providing them with the flexibility they need to create the home of their dreams.