Offer finance for furniture stores

Offer Finance for Furniture Stores: A Complete Guide

In today's competitive retail environment, offering finance options can be a game-changer for furniture stores. As customers become more selective about where they spend their money, giving them the flexibility to pay for furniture over time can lead to increased sales, higher average order values, and improved customer satisfaction. This article explores why offering finance for furniture stores is essential, how it works, and how partnering with a retail finance broker like Kandoo can streamline the process.

Why Furniture Stores Should Offer Finance

Furniture is a significant investment for most households. Whether a customer is purchasing a new sofa, dining table, or bedroom set, the cost can be substantial. Many customers may be hesitant to make such a large purchase upfront, especially in a challenging economic climate. Offering finance provides a solution that benefits both the customer and the retailer.

Increased Sales and Higher Order Values

One of the most immediate benefits of offering finance options is the potential for increased sales. When customers are presented with flexible payment plans, they are more likely to make a purchase. Research has shown that customers who are offered finance options are more likely to spend more than those who are required to pay the full amount upfront.

For example, a customer might initially be interested in a modestly priced sofa but may opt for a more expensive option when they realise they can spread the cost over several months. This ability to increase the average order value can significantly impact a store’s bottom line.

Enhanced Customer Experience

Offering finance also enhances the overall customer experience. Customers appreciate having options, and flexible payment terms can make a high-value purchase feel more manageable. When customers know they have the option to spread payments over time, they are less likely to feel financial pressure, leading to a more positive shopping experience.

Additionally, furniture finance options can make your store more accessible to a broader range of customers, including those who may not have the ability to pay in full upfront but still desire quality furnishings for their home. By offering finance, you're helping customers get what they need while staying within their budget.

Competitive Edge

In an increasingly competitive retail landscape, offering finance can give your furniture store a critical edge over competitors. Customers are more likely to choose a retailer that offers flexible payment options over one that doesn’t. This is especially true in industries like furniture, where purchases tend to be larger and more costly. By offering finance, you differentiate your store from others and attract more customers.

How Does Furniture Finance Work?

Furniture finance typically involves a partnership between the retailer and a finance provider or broker, such as Kandoo. The process allows customers to purchase items on credit and repay the balance over time, usually in monthly instalments. The retailer receives the full payment from the finance provider upfront, while the customer repays the finance provider over the agreed-upon term.

Types of Finance Options

There are several different types of finance options that furniture stores can offer to their customers. These include:

• Interest-Free Credit: Customers can spread the cost of their purchase over a set period without paying any interest. This option is particularly attractive to customers and can significantly boost sales.

• Low-Interest Credit: In this case, the customer pays a small amount of interest on the loan, which can make it more affordable than paying the full amount upfront.

• Buy Now, Pay Later: This option allows customers to take their furniture home and delay payments for a specified period, typically three to six months. After this period, they can either pay the balance in full or start a payment plan.

• Personal Loans: Some finance providers, like Kandoo, offer personal loans that customers can use to finance their furniture purchases. This option gives customers the flexibility to choose the terms that work best for them.

Each of these options has its benefits and can be tailored to meet the needs of your customers. The key is offering a range of options that make it easier for customers to purchase from your store.

The Role of a Retail Finance Broker

Partnering with a retail finance broker is one of the easiest ways for furniture stores to offer finance options. A broker acts as an intermediary between the retailer and the finance provider, handling all the administrative tasks and ensuring a smooth transaction for both parties.

What Does a Retail Finance Broker Do?

A retail finance broker like Kandoo simplifies the process of offering finance by connecting retailers with reputable finance providers. They take care of the paperwork, credit checks, and customer approvals, allowing the retailer to focus on sales and customer service. Brokers can also offer a variety of finance products to suit different customers’ needs, ensuring that your store can cater to a wide range of buyers.

In addition to handling the technical aspects of the transaction, a broker can also provide valuable insights into the types of finance products that are most effective for your store. This guidance can help you optimise your finance offerings and maximise sales.

Why Choose Kandoo?

Kandoo is a leading retail finance broker in the UK, specialising in helping retailers offer finance to their customers. With years of experience in the industry, Kandoo understands the unique challenges faced by furniture stores and can provide tailored solutions to meet your needs.

Here’s why partnering with Kandoo is a smart choice for your furniture store:

• Wide Range of Finance Options: Kandoo works with a variety of lenders to offer a broad selection of finance products, from interest-free credit to personal loans. This ensures that you can provide your customers with flexible payment options that suit their individual circumstances.

• Streamlined Process: Kandoo takes care of the entire finance process, from application to approval. This means you can focus on running your store without worrying about the complexities of offering finance.

• Customer Support: Kandoo offers excellent customer service, ensuring that your customers have a positive experience when applying for finance. This level of support can enhance your store’s reputation and lead to repeat business.

• Compliance and Security: Kandoo is fully authorised and regulated by the Financial Conduct Authority (FCA), ensuring that all transactions are secure and compliant with UK regulations.

By partnering with Kandoo, you can offer finance options with confidence, knowing that your customers are in good hands.

How to Introduce Finance to Your Furniture Store

If you’re considering introducing finance options to your furniture store, it’s important to approach the process strategically. Here are some steps to get started:

1. Assess Your Customer Base

Before introducing finance options, take some time to assess your customer base. What types of products are your customers purchasing? Are they likely to benefit from flexible payment options? Understanding your customers’ needs will help you choose the right finance products to offer.

2. Partner with a Finance Broker

Once you’ve determined that offering finance is the right move for your store, the next step is to partner with a reputable finance broker like Kandoo. A broker can help you navigate the process of setting up finance options and ensure that you’re offering the best products for your customers.

3. Train Your Staff

It’s important to ensure that your staff are well-versed in the finance options you’re offering. They should be able to explain the benefits of finance to customers and guide them through the application process. Providing staff training can help ensure that your team feels confident in promoting finance options.

4. Promote Your Finance Offerings

Once you’ve introduced finance options, make sure your customers are aware of them. Use in-store signage, your website, and social media channels to promote your finance offerings. Highlight the benefits of spreading payments over time and emphasise the ease of the application process.

The Future of Finance in Furniture Retail

As consumer expectations continue to evolve, offering finance will become an increasingly important part of the furniture retail landscape. Customers are looking for convenience, flexibility, and affordability when making large purchases, and finance options can help meet those needs.

In addition, advances in technology are making it easier than ever for retailers to offer finance. Online applications, instant approvals, and digital signatures mean that customers can apply for finance quickly and easily, whether they’re shopping in-store or online.

By staying ahead of these trends and offering finance options that meet your customers’ needs, your furniture store can remain competitive and continue to grow.

Conclusion

Offering finance is a powerful tool for furniture stores looking to increase sales, improve customer satisfaction, and gain a competitive edge. By partnering with a retail finance broker like Kandoo, you can simplify the process of offering finance and ensure that your customers have access to flexible payment options that suit their needs.

Whether you’re looking to offer interest-free credit, low-interest loans, or buy now, pay later options, Kandoo can help you find the right solution for your store. With the right finance options in place, your furniture store can thrive in today’s competitive market, attracting new customers and driving long-term success.