Offering Customer Finance for Touring Bicycles

Why Finance Matters for Touring Bicycles

Touring bicycles are an investment, often costing more than casual bikes due to their durability, special components, and added features. Providing customer finance options removes barriers to purchase, making high-quality bikes accessible to more people.

Key Benefits for Your Business

• Increased sales: Customers are more likely to buy premium bicycles when payments are spread over time.
• Wider audience: Attract buyers who would otherwise delay or forgo their purchase.
• Enhanced loyalty: Customers appreciate flexible payment options, increasing the likelihood of repeat business.

"Finance is not just a tool for making ends meet—it's a gateway to aspiration for your customers."

Understanding Retail Finance for Bicycle Shops

Retail finance, also known as point-of-sale finance, lets customers pay in instalments rather than all at once. Bicycle finance usually includes terms like interest-free periods or low-rate loans for well-qualified buyers.

Financing Models to Consider

• 0% interest finance: Appealing to those wary of extra costs, with repayments over 6 to 24 months.
• Interest-bearing loans: Longer terms or for less qualified applicants, with low, fixed interest rates.
• Buy now, pay later: Customers make the purchase immediately, often with a fixed grace period before payments start.

Getting Set Up Legally in the UK

Retailers offering finance must comply with regulations from the Financial Conduct Authority (FCA). Steps include:

1. Get FCA authorisation: Apply through the FCA’s website.
2. Choose an accredited finance broker: Ensure your finance is provided through a broker registered with the FCA, like Kandoo.
3. Staff training: Everyone offering finance must know the products and the rules.

Be sure to display clear information about available finance offers to stay compliant with UK advertising standards.

Compliance Checklist

How to Offer Finance to Touring Bike Customers

Follow these steps to integrate finance into your customer experience:

1. Partner with a broker: Choose a trusted provider with flexible options.
2. Train your team: Equip staff to explain the benefits and process confidently.
3. Market your finance: Use signage, your website, and in-store displays to promote finance on touring bicycles.
4. Streamline applications: Digital platforms from brokers like Kandoo make applications quick and hassle-free.
5. Support customers throughout: Be ready to answer questions and guide applicants during the process.

"The easier you make it for customers to finance, the faster your sales can grow."

Tips to Make Finance Work for You (and Your Customers)

• Always disclose APR and finance terms upfront.
• Offer flexible deposit amounts for wider affordability.
• Target marketing around N+1 upgrades—touring enthusiasts often look to trade up.
• Monitor FCA updates for regulatory changes.

Highlight: Customer Example

Sarah loved the idea of exploring the UK countryside on a touring bicycle, but the up-front cost was a hurdle. With accessible finance she was able to get her dream bike for just £40 per month—no waiting, no compromise!

Frequently Asked Questions

How quickly can finance applications be processed?
Most digital applications, especially through modern brokers like Kandoo, are processed within minutes, allowing customers to ride away same day.

Are there fees for the retailer?
Depending on your broker, there may be fees or commissions on financed sales. Review your agreement carefully.

Do I have to offer finance to every customer?
No, but offering it as a standard choice boosts uptake and overall sales.

Ready to Offer Finance on Touring Bicycles?

Start today by partnering with an established retail finance broker. Providing affordable payment options isn’t just customer-friendly; it’s good business practice—especially for specialist products like touring bikes.

Take the Next Step

• Visit FCA for regulatory guidance and application steps.
• Contact Kandoo to explore tailored finance packages for your bike shop.
• Update your sales materials to highlight finance options on every touring bicycle you stock.

"Finance breaks down barriers. Don’t let price stand in the way of your customers’ next adventure!"