Why Use Finance

It may sound surprising but the majority of UK consumers do not have significant liquid funds available for large purchases – especially unexpected ones. The Bank of England estimates that 40% of UK households have less than £3,000 in savings. Against this backdrop finance is the only option if the customer wants that new bathroom or has to have a new boiler installed before winter.

A business that offers finance to its customers will see a combination of the below effects:

• Lead volumes and website traffic will increase;
• Sales conversion percentages may increase as customers prefer an affordable monthly payment;
• Average order value may rise as discounts become less important to customers or it becomes easier to upsell products;
• Use of a well know lender can add credibility to the underlying goods and the retailer.

Remember with a loan agreement the customer has the protection of section 75 of the Consumer Credit Act 1974. This means than in the case of poor quality goods or service the customer can sue the lender if the retailer is unwilling or unable to remedy the situation.

If you are not offering finance to your customers come and talk to us about what it could do for your business.