The following story illustrates how a business like yours might benefit from Fortiva Retail Credit’s second look financing solution. Please note these are hypothetical examples.
For business owners like Lee Baker of Baker Comfort Solutions, each declined financing application signaled disappointment, and a customer leaving without the heating or cooling system they desperately needed.
Lee has been in the HVAC business for over 15 years. What started as a small business has grown into a thriving mid-size company with three regional service centers and a reputation for exceptional service and installation quality.
Despite his success, Lee faced a recurring, significant challenge: when customers couldn’t secure financing, his business lost sales.
Primary Lenders vs. Second Look Finance Providers
When applying for financing with a retailer or service provider, customers are first evaluated by primary lenders. These providers use traditional underwriting methods that rely heavily on a consumer’s credit score.
When a primary lender declines an application, valuable customers settle for a smaller project or, worse, leave the store without making a purchase. A second look finance provider, however, can offer an alternative path to approved financing.
Second Look Finance Providers
When customers are denied traditional financing, second look finance providers can offer an immediate solution that prevents customers from resorting to expensive alternatives such as lease/purchase agreements.
Some key differences between first and second look finance providers include:
- Customers served: Primary lenders typically serve consumers with the strongest credit profiles, while second look finance providers serve consumers with less-than-prime credit scores.
- Approval criteria: Primary lenders look primarily at FICO scores, while second look providers like Fortiva Retail Credit are able to look at alternative data and go deeper in the underwriting process.
- Payment flexibility: Second look providers offer financing options specifically designed for consumers with less-than-prime credit, including manageable payment terms that allow customers to secure essential items like HVAC systems and new windows.
For Lee’s HVAC business, implementing a second look financing program meant turning previously lost opportunities into completed sales. Instead of losing qualified customers, Lee found a way to approve more clients while maintaining their desired purchase amount.
How Second Look Finance Providers Work
From a merchant perspective, second look financing allows retailers to say “yes” more often, capturing sales that would otherwise be lost. Lee was pleased with how easily he could implement second look financing into his existing sales process:
- First, customers apply for financing through his primary lender.
- If declined, the second look provider evaluates them without the need for another application supported through a seamless integration.
- Approved customers receive their credit offer in seconds.
- Lee completes the sale and builds customer loyalty.
The entire process is paperless and seamless. There’s no stigma and no complicated secondary application.
The Johnson Family Experience
The impact of second look financing becomes clear through customer experiences.
When the Johnson family visited Baker Comfort Solutions, their heating system had completely failed during the coldest week of winter. Mr. and Mrs. Johnson both had steady incomes and were responsible consumers. Despite having a modest emergency fund, they still needed to finance about 60% of the new HVAC system.
When it came time to apply for financing during the in-home consultation, they were declined by Lee’s primary financing provider. Before implementing a second look solution, the denial would have ended the sales conversation or resulted in a drastically reduced heating solution that wouldn’t adequately warm their home.
Instead, Lee’s system automatically submitted their information for a second look, and they were approved within seconds for the full amount they needed. The Johnsons got their essential heating system installed quickly and Lee made a larger sale instead of losing it completely or settling for a smaller purchase.
Fortiva Retail Credit: A Leading Second Look Finance Provider
With 29 years of experience supporting consumers with less-than-prime credit, Fortiva Retail Credit stands out among second look finance providers. Businesses across the United States have benefited from our flexible technology platform and omnichannel consumer credit program.
The Fortiva Retail Credit program is managed and serviced by Atlanticus, the largest and only publicly traded servicer for second look credit products in the country. Our integration capabilities make it easy for merchants to widen their customer base and increase sales.
For businesses like Baker Comfort Solutions, partnering with Fortiva Retail Credit means offering a cohesive financing experience that builds confidence and increases customer satisfaction.
The Impact: More Approvals, Bigger Projects, Loyal Customers
Adding Fortiva’s second look finance solution offers multiple benefits to your business:
- More approvals: A seamless second look financing option increases the potential to approve more customers and make more sales.
- Larger projects: Customers who get approved through second look financing are better positioned to purchase the projects they need and want, rather than settling for projects at a reduced scale.
- Enhanced customer loyalty: More approvals also lead to greater customer satisfaction, as customers are able to finance the projects they need without needing to save for the entire cost or resort to expensive rent-to-own options.
Approximately 35- 40% of U.S. consumers hold a FICO score below 700—many of whom have a steady income but have experienced credit challenges in the past. These are responsible consumers ready to improve their homes; they simply need a more flexible way to pay.
By partnering with a second look finance provider, you can offer customers the products and services they desire with the financing they need.
Tap Into a New Revenue Stream with a Second Look Finance Provider
Whether you’re a small company looking to expand, a growing business with multiple locations, or a major nationwide retailer, a second look finance provider could be the solution you need to approve more customers and increase your sales.
A second look finance provider like Fortiva Retail Credit can help you:
- Approve more customers who might be declined by primary lenders
- Increase your average sale amount
- Build unshakeable customer loyalty and expand your market reach
- Support continued growth and expansion
Don’t let qualified customers walk out the door because of a denied financing application. Consider how second look financing could transform your business the way it has done for many of our clients.
Contact us today to tell us about your company and learn more about how second look financing can help you approve and retain more customers. Our team will review your details and reach out to discuss our customized solutions and partnership opportunities.