For retail businesses, the sale isn’t final until payment is made. And for millions of consumers, access to financing is what makes that possible. However, when a consumer is denied credit, it’s not just a lost transaction, it’s a lost opportunity to build brand loyalty and grow your business.
More and more businesses are turning to financing partners who can approve consumers across the credit spectrum, so missed sales opportunities become meaningful wins. Finding the right retail finance provider is a strategic decision that can improve approval rates, increase sales, and enhance the customer experience across every channel.
The Importance of Retail Finance Providers
A retail finance provider gives consumers the option to pay for their purchases over time, often through credit cards, installment loans, or promotional financing offers. These retail finance providers partner with businesses to offer financing at the point of sale, either in-store, online, or both.
There are three main types of retail finance providers:
- Prime Lenders: Prime lenders are retail finance providers who typically approve consumers with prime credit scores.
- Second Look Financing Providers: Second look financing providers serve those with less-than-prime credit who may not qualify with prime lenders by offering more inclusive approval methods.
- Tertiary Providers: These lenders often serve consumers who don’t qualify for either prime or second look financing.
Partnering with the right retail finance providers allows you to extend financing access to a broader range of consumers, including over 30% of Americans who have less-than-prime credit and deserve a second opportunity at credit approval.
If your business offers financing but you’re still seeing friction in the path to purchase for your potential customers, consider re-evaluating or expanding your options.
How can you determine if your current financing solution isn’t working hard enough for your business? Here are some potential signs:
- Low Credit Approval Rates: Too many declines from your current retail finance provider can mean lost sales and unmet consumer needs.
- Cart Abandonment at Checkout: Lack of financing, or financing that doesn’t meet shoppers’ expectations, can cause potential customers to walk away from purchases, especially for higher-ticket items.
- Stagnant Average Sales Values: When your customers don’t have access to credit, they typically tend to spend less. Financing can unlock larger purchases and upsells.
- Purchase Interruptions: If financing isn’t seamlessly available both in-store and online, your customers can hit roadblocks that may slow conversion and impact satisfaction.
- Declining Loyalty: Consumer financing can drive repeat business. Without it, you may risk sacrificing long-term relationships and customer lifetime value.
How to Find the Right Retail Finance Provider
Choosing a retail finance provider goes beyond adding another payment option or evaluating costs or application speed; it involves selecting the right provider who understands your customers, your business, and your goals.
- Define Your Business Needs
Before you evaluate potential retail finance providers, identify what you need from a financing solution. This includes your industry niche, your average transaction size, and your primary sales channels. Whether in-store, online, or both, your finance provider should be able to meet your customers where they shop.
It’s also important to understand your customer base: if a number of your customers fall outside the prime credit range, consider an alternative financing solution that goes beyond traditional lending.
- Look for Approval Models That Go Beyond Credit Scores
Traditional credit approval methods can exclude millions of creditworthy consumers who are still capable and willing to pay. Consider finance providers that go beyond FICO scores to look at a broader set of data to evaluate creditworthiness. Fortiva Retail Credit draws on its 29 years of underwriting experience in less-than-prime and second look financing to say yes more often.
This gives you another chance to make the sale when customers need essential purchases like new windows or a replacement washer/dryer. Second look financing can help you build trust with your customers and protect your brand by fostering long-term relationships.
- Prioritize Seamless Technology and Integration
The right finance provider will customize a solution to integrate into your systems, scale with your business, and accommodate everything from a single storefront to a nationwide footprint. A seamless, technology-enabled experience can help reduce friction, streamline the integration process, and eliminate lost checkouts.
When you offer second look financing to consumers who are declined by prime lenders, you provide credit access without requiring a new application, increasing both completed sales and repeat business.
- Evaluate the Customer Experience
Your retail finance provider reflects your brand, so it’s important to choose a provider that enhances the customer experience. Look for a provider that offers a user-friendly application that’s fast and intuitive across every touchpoint, so that your customers’ experience feels consistent and well-supported.
A smooth financing experience helps create a lasting impression, and the right finance provider can make your customers feel valued and respected.
- Highlight Support for Your Business
Your retail finance provider should provide the support you need for your business. Prioritize financing partners that understand your industry and your business, and are easy to reach when questions or issues arise. Make sure your financing partner provides a support team that’s invested in your success.
Why Fortiva Retail Credit Stands Out
The right retail finance provider doesn’t just process applications; they can unlock opportunities for your business. Whether you’re looking to capture lost sales, improve customer satisfaction, or better serve consumers across the credit spectrum, second look financing can be a solution that powers your business’s continued success.
With a deep understanding of the less-than-prime consumer, Fortiva Retail Credit is the only publicly traded provider that specializes exclusively in second look credit solutions. Our programs are designed to help businesses approve more consumers, increase average ticket size, and drive repeat purchases.
Our proprietary underwriting technology platform goes beyond traditional credit scores to evaluate a consumer’s broader financial profile. Through this approach, your business can extend credit to more shoppers who may otherwise be limited in their credit options. With seamless omnichannel integration, it’s easy for your business to deliver financing at every customer touchpoint.
Our full suite of products includes private label credit cards, cobranded credit cards, and installment loans, giving you the flexibility to choose what best fits your business model.
We partner with retailers across a wide range of industries to help them grow their business and better serve their customers. To see how we can help your business increase revenue and build customer loyalty, contact us today to learn more.