For many retailers, turning away customers due to financing rejections is more than a lost sale; it’s a missed opportunity for long-term loyalty and repeat business.
Take, for instance, a home furnishings store in the Midwest – a young couple walked in, eager to furnish their nursery before their baby’s arrival. They picked out the perfect crib, a glider, and a dresser. It was everything they needed. However, when it came time to pay, their financing was declined due to their credit history. They were embarrassed and disappointed and left empty-handed.
The couple had steady incomes, paid their bills on time, and were simply recovering from a few financial setbacks. They weren’t bad customers. They were just overlooked by traditional lenders.
They never returned.
With nearly 41% of U.S. consumers holding credit scores below 700, traditional lenders often exclude a vast customer base. However, that doesn’t mean these consumers lack the desire or even the ability to make purchases.
By offering secondary financing solutions to customers who don’t qualify for prime credit, retailers can capture additional sales, increase average ticket sizes, and build lasting customer relationships.
Fortiva Retail Credit specializes in this space, providing technology-enabled, omnichannel financing solutions designed to help merchants serve a broader audience while minimizing risk.
The Power of Second Look Financing
Retailers face a common challenge: potential customers get excited about a purchase, only to be declined by a prime lender. This results in abandoned carts both online and in-store. But what if you could offer these customers a second chance for financing?
Expand Retail Customer Base
By offering financing options for customers with FICO scores below 700, retailers open their doors to a substantial market segment. Many of these consumers have high purchasing intent, stable incomes, and the ability to pay but may have limited credit history or past financial missteps; therefore, they don’t meet traditional lending criteria.
- A significant portion of U.S. consumers have less-than-prime credit profiles
- Customers who receive a second chance at financing are more likely to develop brand loyalty and return for future purchases
Boosting Sales and Average Ticket Size
Retailers who implement second look financing often see a substantial uplift in sales. Offering secondary financing leads to higher conversion rates and increased spending per transaction.
- Our merchant partners experience up to* 30% average increase in ticket size
- Customers who finance tend to buy higher-value items or add more to their purchases
- Repeat purchases become more frequent, improving customer lifetime value
Reducing Abandoned Carts and Lost Revenue
In e-commerce, cart abandonment is a major challenge. One of the top reasons? Payment issues.
- 70% of online shoppers abandon their carts, with lack of financing playing a key role
- Second look financing helps recover sales that would otherwise be lost
- In-store customers who qualify for financing are less likely to walk away empty-handed
How Fortiva Retail Credit Supports Retailers
As the largest and only publicly traded servicer for second look credit products, Fortiva® Retail Credit provides a seamless, technology-enabled solution tailored to modern retail needs. Here’s how:
Omnichannel Financing for Seamless Integration
Customers today expect a smooth, consistent experience whether they’re shopping online, in-store, or through a mobile app. Fortiva’s cloud-based financing platform easily integrates with existing POS systems and eCommerce platforms, enabling retailers to offer financing at every step of the customer journey.
- Quick, technology-enabled credit decisions with high approval rates
- Fully integrated digital experience, from application to checkout
- Minimal disruption to existing workflows and operations
Technology-Enabled, Data-Backed Risk Management
One of the biggest concerns retailers have is the potential for increased costs to finance less-than-prime consumers. Fortiva Retail Credit mitigates this with a deep understanding of the less-than-prime consumer and experience in predictive analytics and technology-driven risk assessment that helps retailers increase sales.
- Proprietary machine learning models accurately assess creditworthiness, looking beyond traditional credit scores to evaluate income, employment stability, and financial behavior patterns.
- Retailers experience higher approval rates through deeper underwriting
- Real-time fraud detection and compliance monitoring ensure secure transactions and reduce risks for retailers
Fortiva’s market-leading analytics enable retailers to say yes more often, thereby boosting sales and offsetting the cost of second look financing.
Strengthening Customer Loyalty
Effective financing strategies turn single purchases into ongoing customer relationships. Customers who receive secondary financing options often become repeat buyers, enhancing brand loyalty and increasing customer lifetime value. Providing a second chance for financing sends a clear message: “We value your business, so we offer solutions that say yes more often.”
Remember the young couple who walked out of the home furnishings store empty-handed? Imagine a different ending: With a second look credit option in place, they could have furnished their baby’s room with confidence and walked away feeling supported instead of rejected.
Months later, they might return to buy a toddler bed, then a mattress, and maybe even a new living room set as their family grows. That’s the power of second look financing. It can build trust that pays off in the long run.
In a competitive market, that message matters. When consumers feel seen and supported, they’re more likely to return, refer friends, and stick with your brand over time. Offering flexible payment options improves overall customer satisfaction and brand perception.
Our financing solutions allow retailers to keep their branding front and center, while Fortiva Retail Credit works behind the scenes with their proprietary underwriting technology platform to provide second look credit approvals that turn declines into long-term loyalty.
Why Retailers Can’t Ignore Second Look Financing
With increasing competition and tightening consumer spending, retailers need every advantage to drive sales and customer retention. Second look financing represents an untapped opportunity to capture more revenue while providing a valuable service to underserved consumers.
Secondary financing is a strategic tool for growth. For retailers, it means:
- More customers approved
- Higher sales and larger transaction sizes
- Improved customer loyalty
- Seamless omnichannel integration
It allows consumers to purchase what they need, with the payment flexibility they prefer and the convenience they expect. By partnering with Fortiva Retail Credit, retailers gain a technology-forward solution that helps unlock untapped revenue and provides a better customer experience.
The Bottom Line: A Win-Win for Retailers and Consumers
Second look financing has evolved from a nice-to-have to a must-have for businesses looking to thrive. Reaching customers who deserve a second opportunity can drive growth, increase customer loyalty, and gain a competitive edge.
Retailers who embrace innovative financing solutions will be best positioned for success. Don’t let valuable sales slip away, empower your business with the tools to say “yes” to more customers. Meeting customers where they are, financially and digitally, creates a more inclusive shopping experience and keeps your brand top-of-mind when it matters most. It’s not just smart business; it’s sustainable growth.
Ready to capture more sales and build lasting customer relationships? Contact us to learn how second chance financing can drive results for your business.
*Source: Fortiva Retail Credit Internal Performance Data, July 2025