Offer Finance to Customers: A Plain English Guide

Making Finance Simple for Everyone

Hey there! If you’ve ever wondered how to make buying easier for your customers (and boost your own sales in the process), you’re in the right place. Let’s walk through what retail finance really means, why it matters, and how you can offer it with confidence — all in plain English.

Table of Contents

1. Why Offer Finance to Customers? 2. How Does Retail Finance Work? 3. Setting Up Finance: Step by Step 4. Key Benefits for Your Business 5. Things to Watch Out For 6. Real-Life Success Story 7. Frequently Asked Questions 8. Wrapping It All Up 9. Ready to Get Started?

Why Consider Offering Finance?

Giving customers the option to spread the cost of their purchase can be a game-changer. Whether you sell bikes, sofas, or solar panels, financing turns big purchases into manageable payments.

Finance helps:

• Customers buy what they need without draining their savings
• Businesses close more sales and grow faster

It’s a win-win!

How Does Retail Finance Work?

Put simply, retail finance is a way for shoppers to buy now and pay later, usually through a loan or payment plan arranged at the checkout.

Here’s how it plays out:

• Customer chooses finance at checkout (online or in-store)
• Quick application — often just a few questions
• Approval is usually fast
• Once approved, you get paid upfront by the finance provider
• The customer pays the finance provider in instalments

Step-By-Step: Getting Started With Finance

1. Partner with a Finance Broker: Look for a regulated company like Kandoo who can connect you with reputable lenders. 2. Choose Your Products: Not everything needs to be finance-ready! Decide what works for your business. 3. Train Your Team: Make sure staff can answer basic finance questions to help customers make informed choices. 4. Promote Finance Options: Let your customers know about this helpful service in-store, online, and in marketing. 5. Stay Compliant: Always provide clear information about costs, repayments, and eligibility.

The Big Benefits for Business

Offering finance can:
• Grow your customer base
• Increase your average order value
• Set you apart from competitors
• Improve customer loyalty

"Giving shoppers flexible payment options really helps them say ‘yes’ to bigger purchases.”

Top Tips and Common Pitfalls

Pro Tips:
• Show monthly payment examples to make prices feel more manageable
• Make the process as quick as possible — nobody likes paperwork
• Pick a finance broker who offers strong support and transparency

Common Mistakes:

• Failing to explain the finance option until the last moment
• Not making sure your website is clear about finance terms
• Choosing a broker or lender with hidden fees

Insights from the Experts

Andy, a retail finance specialist at Kandoo, says:

“Listening to customers and making finance clear and simple is key. The easier you make it, the more everyone wins.”

According to the Financial Conduct Authority (FCA), more than a third of UK consumers have used some kind of retail finance in the past two years.

Mini Case Study: From Doubtful to Delighted

Last year, Emma, a home improvement retailer, started working with Kandoo. Within six months, her average sale value increased by 30 percent.

She says: “Our customers love the flexibility, and we’ve seen a real boost in business. We wish we’d started sooner!”

Frequently Asked Questions

Do I need a licence to offer finance? If you use a regulated finance broker like Kandoo, you usually don’t need one yourself. (But check your specific circumstances.)

Is it safe for my customers? When working with FCA-regulated brokers and lenders, customers are protected by strict UK rules.

Will I get my money straight away? Yes. Once a finance application is approved, the provider pays you directly.

Does it cost me anything? There may be a small fee per transaction. Transparent brokers will always tell you upfront.

Wrapping Up: Finance Made Friendly

Making finance available to your customers isn’t just for big businesses anymore. With the right partner, you can set it up quickly and easily, helping more people buy what they love.

Ready to Offer Finance?

Want to learn how Kandoo can help you bring flexible finance to your customers? Get in touch, and let’s make shopping better for everyone!