The Untapped Potential of Retail Finance for Customers: A Comprehensive Guide 

In a world where digital adoption is growing at an unprecedented rate, retail finance emerges as a catalyst for better customer engagement. By 2025, the value of POS financing is projected to reach $2.52 trillion¹. This article aims to demystify the inner workings of retail finance for customers, the recent changes in the industry, and how businesses can adapt. 

The Rise of Point-of-Sale Financing 

“Customer is king,” this mantra has always held true, but with the advent of technologies like AI and machine learning, customization is reaching a whole new level. 

As reported by a Turnkey Lender study, 32% of customers prefer point-of-sale financing over credit cards. But what does point-of-sale financing entail? 

• Instant Loans: Customers can instantly apply for credit at the point of purchase. 
• Transparency: Unlike traditional loans, the terms and conditions are clear and simple. 
• Flexible Repayment: Offers options for deferred payments or installment plans. 

In-house Financing: The New Buzzword 

In-house financing isn’t a novel concept, but the automation brought by digital lending platforms has invigorated this model. Automating credit scoring, application processing, and risk assessment, digital platforms have significantly reduced the cost of in-house financing. A survey by Duologi suggests that 40% of retailers are planning to adopt or upgrade their in-house financing options in the next two years. 

Why Adopt In-house Financing? 

According to Turnkey Lender, businesses that can benefit from in-house financing are: 

• Retail Shops 
• Healthcare Providers 
• Vocational Schools 
• Car Dealerships 

The compelling aspect is that these businesses can create tailored financial solutions for their customer base. 

AI: The Driving Force 

AI-powered Point of Sale lending is causing a shift in the retail finance landscape. AI can analyze a vast amount of data to provide personalized options for customers. Additionally, AI makes the loan origination process more efficient and less prone to errors. 

How to Make Retail Finance Work for Your Business? 

• Customization: One size does not fit all. 
• Transparency: Keep your customers in the loop. 
• Accessibility: Make your financing options easy to find and easier to understand. 

Customer Financing: A Win-Win Solution 

Customer financing isn’t only beneficial for businesses; it’s a two-way street. As per Quickbooks, companies that offered customer financing saw a 17% increase in sales orders. So, it’s an area where both the customer and the business can reap rewards. 

Final Thoughts 

Retail finance for customers has gone beyond being just an alternative payment method. It’s now a significant tool for customer retention and business growth. As we advance further into the digital age, businesses should not underestimate the potential of retail finance.  

This is an informative piece aimed to guide both businesses and customers through the dynamic landscape of retail finance.  

By integrating retail finance, businesses are not just making a short-term sale; they are investing in a long-term relationship with their customers. So, are you ready to transform your retail financing experience? 

For further insights, visit Turnkey Lender Retail for end-to-end automation of in-house financing.