Retailers know purchase decisions are often made in a matter of moments. At checkout, whether in-store or online, the availability of fast, flexible financing can mean the difference between a completed sale and an abandoned cart.
For the millions of Americans with less-than-prime credit, the inability to receive credit financing can affect their ability to make a purchase.
That’s why offering alternative financing options at checkout is critical. Point of sale financing, especially when it includes second look credit solutions, can help your business convert more purchases by giving your customers the purchasing power they need.
When the financing experience is fast, integrated, and easy, it elevates the customer journey and can directly contribute to higher average ticket sales.
What Is Point of Sale Financing?
Point of sale financing allows customers to apply for and access credit during the checkout process. It offers consumers a way to afford purchases through flexible payment options, easing financial strain while increasing purchasing power.
For many customers, point of sale financing offers a lifeline when they are faced with large or unexpected purchases. Whether they’re replacing a broken appliance or repairing their home, having a financing option makes those purchases feel more accessible by removing the pressure of paying in full up front.
Most point of sale financing starts with a prime lender that evaluates credit applications based on traditional credit scores. If approved, the customer receives a credit card or installment loan.
While this traditional financing model through prime lenders works well for consumers with strong credit histories, it can exclude a significant number of potential buyers who don’t fit within the parameters of prime lending.
Where Traditional Financing Falls Short
Despite being creditworthy, not every consumer meets prime lending requirements. Many consumers have credit scores that may not meet prime thresholds, perhaps due to limited credit history, past setbacks, or other factors, yet they’re still capable of managing credit responsibly.
When you rely solely on prime lenders, you risk losing more than just the sale. A denial at checkout can lead to frustration, abandoned carts, and a loss of brand trust that’s hard to win back. In a competitive market, every lost transaction is an opportunity for your competitors to win that business instead.
The Value of Second Look Financing at Point of Sale
Second look financing at point of sale can help retailers say “yes” more often. When a prime lender declines a customer, a second look program re-evaluates the applicant using a broader model. Fortiva Retail Credit leverages 29 years of underwriting expertise looking beyond traditional credit scores to consider other meaningful data points such as income stability, employment history, and positive credit behaviors.
By giving more consumers a path to credit approval, second look financing can help your business recover lost transactions and increase overall approval rates. Shoppers who might have walked away empty-handed now have a financing option at the exact moment they’re ready to buy.
Offering accessible second look financing options also communicates that your business values all shoppers, not just those with perfect credit. This fosters trust and long-term loyalty.
Point of sale second look financing can be especially impactful for high-ticket, essential items, like appliances, mattresses, or home repairs. Customers shopping for these items who gain access to alternative financing options after being declined by prime lenders are likely to complete their purchases rather than walking away empty-handed.
Finding the Right Point of Sale Financing Partner
Choosing the right financing provider involves selecting a partner that supports your business growth, enhances customer experience, and helps strengthen your brand reputation.
Here’s what to look for in a point of sale financing provider:
- Technology-Enabled Underwriting. Choose a provider that evaluates consumers holistically. A second look financing provider assesses more than just FICO scores and potentially offers higher approval rates.
- Omnichannel Integration: Your business operates across channels, and your point of sale financing provider should, too. Find a financing platform that can support in-store and online environments and scale easily with your growth.
- Fast, Frictionless Applications: Speed matters at checkout. If your customers have to jump through hoops to access credit, they may end up abandoning their purchase. A second look financing partner that offers quick decisions seamlessly, without the need for another application, can help remove barriers to purchase.
- Customer-Centric Experience: The financing experience should feel like an extension of your brand. Choose a partner with user-friendly applications and consistent service that focuses on your customers’ needs.
- Proven Track Record: A provider with experience and a strong performance history in second look financing is a valuable asset. Choose one with deep expertise and a proven ability to support your business.
How to Turn Declines Into Sales
With a deep understanding of the less-than-prime consumer and experience in predictive analytics and technology-driven risk assessment, Fortiva Retail Credit is uniquely positioned to help your business approve more customers, boost sales, and drive brand loyalty.
Our proprietary technology platform enables more approvals by looking beyond the traditional credit metrics. This means you can serve a broader customer base: those who may not qualify through prime lenders but still have the means and intent to buy.
We provide seamless omnichannel integration, ensuring a consistent, fast, and frictionless financing experience for your customers, whether they’re shopping in-store or online.
Our suite of products, including private label credit cards, cobranded credit cards, and installment loans, offers flexible solutions to meet your customers where they are. Our offerings can help you tailor financing to fit your business goals and customer preferences, increasing both transaction size and repeat sales.
If your current point of sale financing solution only serves the most qualified applicants, you could be missing out on additional sales and valuable long-term customer relationships. With Fortiva Retail Credit as your financing partner, you can empower more customers to move forward the moment they’re ready to buy.
Contact us today to see how Fortiva Retail Credit can help you turn lost opportunities into loyal customers.