Top 5 Best UK Retail Finance Companies

Giving You the Lowdown on Retail Finance Companies

If you’re eyeing up a new sofa, fridge, or even a garden shed, retail finance can help spread the cost. But with more finance providers popping up than there are cuppas at a British tea party, how do you choose the best one? We've compared five leading UK retail finance companies, so you don’t have to faff around. Let’s break it down plain and simple.

Quick-Glance Comparison Table

Company	APR	Application Speed	Minimum Amount	Customer Rating
Kandoo	From 4.9%	Fast (minutes)	£250	4.8/5
Klarna	0% - 18.9%	Instant	£35	4.6/5
Deko	From 9.9%	Fast	£250	4.4/5
Novuna	From 2.9%	Quick	£100	4.5/5
PayPal Credit	21.9% var.	Instant	£99	4.3/5

(Rates and info correct as of June 2024. Always check latest terms.)

What Sets Each Provider Apart?

• Kandoo: Flexible options and a focus on bigger purchases, great if you're buying something substantial. Trusted by many UK retailers.
• Klarna: Famed for Pay in 3 and Pay Later. Perfect for smaller, impulse buys, but terms can change quickly.
• Deko: Works with loads of online retailers. Not the lowest rates but easy process.
• Novuna: Known for clear terms and low starting rates, especially handy for mid-range purchases.
• PayPal Credit: Most people already have a PayPal account, so getting credit is super easy, though the interest rate is a bit steeper.

The Pros and Cons – Warts and All

Kandoo
• Pros: Variety of lenders, competitive rates, quick decisions.
• Cons: Not usually for very small purchases (under £250).

Klarna

• Pros: No interest on many options, lightning fast, very simple.
• Cons: Can encourage overspending, and credit limits might be lower than you expect.

Deko

• Pros: Quick online decisions, integrates with checkout.
• Cons: Higher minimum spend, interest rates can be average.

Novuna

• Pros: Low starting rates, transparent terms.
• Cons: Sometimes needs a decent credit score for approval.

PayPal Credit

• Pros: Instantly available if you’ve got PayPal, easy to use.
• Cons: Variable (and high) interest after promo periods.

Which Provider Fits Who?

• If you want a range of options for bigger spends, look at Kandoo.
• Planning a cheeky ASOS haul or just want to split a small bill? Klarna is your mate.
• Buying from a specific online shop? See if Deko is baked in at checkout.
• Like knowing exactly what you’ll pay, with lower rates on good credit? Check out Novuna.
• Want fast, familiar finance with flexible spends? PayPal Credit does the job—just beware the rates.

Straight from the Expert’s Mouth

"Look, no one likes faffing about with paperwork. The right finance provider should make buying simpler, not trickier. Always check if there are late fees, look at those APR rates, and work out if spreading the cost is worth it for your budget."

– Financial adviser Sarah Kent

Here’s the Bottom Line

You want a straightforward deal without nasty surprises. For bigger items and loads of choice, Kandoo stands out, thanks to multiple lenders and honest rates. Klarna makes small, split payments painless. If clarity and low rates are your thing, Novuna is one to watch. Remember, only borrow what you can pay back easily – and don’t get caught by high rates after the promo ends.

Ready to Take the Next Step?

Compare your top choices, check the real costs, and always read the small print. If you’re set on spreading the payments for your next big buy, why not see what deals Kandoo can find you today?