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The Benefits of Point-of-Sale Financing for Merchants

Consumer financing provides many benefits to your business. By offering POS financing, you’ll see an increase in traffic, customer spending, and, of course, revenue. Here we list the top five benefits merchants enjoy by offering POS financing as a payment option.

What is POS Financing?

Point-of-Sale financing is a simple way for merchants to provide access to credit as a customer prepares to make a purchase. And when you partner with the right consumer financing firm, POS financing is a win-win for both you and your customers.

POS financing empowers your customers to make the purchases they want without disrupting their monthly budgets. Financing plans break their total purchase price into affordable, scheduled, low monthly payments. Shoppers confidently shop with you and bring home their purchase the same day.

POS financing serves your customers while benefitting you, the merchant. Below, we walk you through five benefits of POS financing and why you should offer it to shoppers.

1. Widen Your Customer Base

POS financing is a popular payment option for customers of all demographics. Younger shoppers ­­­­–– everyone from recent college grads to younger millennials –– have always been quick to adopt consumer financing for their big-ticket items. Young adults often have little or no credit, student debt, and are less likely to be able to meet credit card repay standards. As a result, credit card ownership rates are lower for this group than for older shoppers. This demographic regularly relies on consumer financing to make purchases.

But young shoppers aren’t the only ones taking advantage of POS financing. Studies show that shoppers aged 55 and older are the fastest growing segment of buy now, pay later users. As customers prepare to check out, a POS financing option frees them up to make big purchases without jeopardizing their credit score.

By providing a financing solution at the point of sale, you empower customers of all ages and demographics to shop with ease. Financing makes your business more accessible to customers who might not have had the ability to shop with you otherwise. When you offer POS financing through a trusted firm like UCFS, you widen your customer base while removing the burden of upfront payments.

2. Increase Average Order Value (AOV)

Increasing your business’s average order value is a powerful way to grow your sales and increase the efficiency of your marketing budget. As a merchant, you’re always looking for ways to increase your AOV, and providing POS financing is an effective way to do so.

POS financing gives shoppers the freedom to choose product upgrades and add-ons that they might not choose without monthly installment options. According to a PayPal study, merchants providing financing options saw 56 percent growth in their AOVs. Consumer financing gives shoppers the flexibility to add goods or upgrades to their purchases, which means they get what they want and walk away happy, and you increase order values.

Partnering with a proven firm like UCFS makes POS financing simple. UCFS has been providing effective financing solutions to merchants for more than 40 years. Your business can benefit from this experience too. By making the simple decision to offer consumer financing, you increase cart value while reducing your spending.

3. Improve Cash Flow

Cash flow keeps your business afloat. It allows you to invest in growth. In fact, cash flow might just be more important than your profits regarding day-to-day business operations. And you can promote cash flow within your business by offering POS financing.

Cash comes into your business through customers making purchases. It goes out through expenses, including overhead, payroll, and business expansion. While profit looks great on paper, your business profits on paper don’t pay your bills; cash does. A steady cash flow is what allows your business to not only survive but to thrive. Offering consumer financing is a smart way to ensure you’ve got constant cash flow while shoppers take advantage of affordable payment options.

Partnering with UCFS for consumer financing allows your customers to enjoy the ease and affordability of monthly payments, and you’ll see a strong cash flow. Once approved for POS financing, your customers make payments to UCFS for the life of their loan. UCFS pays you the full amount directly to the business within a few days of the contract being signed, so you don’t have to wait month after month to receive funds from your customer. POS financing improves your cash flow and helps you invest back into your business.

4. Make More Sales

POS financing provides purchase options your customers want and need. With consumer financing, you will make more sales while providing a dignified, stress-free experience for your customers.

Shoppers won’t consider purchasing from companies if they know certain goods or services are out of their price range. But POS financing eliminates that financial barrier by providing affordable payment options. With financing from UCFS, customers can break up a lump-sum payment into smaller installments, giving them the confidence to shop without fear of not being able to afford their purchases.

When customers are confident, they’re more likely to spend. In this way, POS financing helps you make more sales, increasing your revenue.

5. Save Time and Money with POS Financing

When considering POS financing options, think about the financing firm you’ll partner with. You want a company with excellent customer service for both you and your shoppers. You’ll need a simple customer credit application process that shoppers can complete online – either in-store or from their home. Quick notice of approval is a must. And of course, you’ll want a firm that is quick to meet your needs.

United Consumer Financial Services delivers on every one of these points – plus more. UCFS innovates and transforms the way merchants offer POS financing. Shoppers easily apply for POS financing as they prepare to make their purchases. After a few minutes, they receive a notice of approval. The contract is signed and customers make payments using autopay or through the UCFS site. It’s the simplest way to take advantage of POS financing.

As the merchant, you reap the benefits of UCFS’s U.S.-based customer support. Timely customer help and kind service reps keep your customers happy while answering their questions and resolving their issues.

This frees you up to invest your time and energy into your business. You have no need to hire an additional employee to take care of payment collection or financing questions from your customers. Instead, you can devote the increase in revenue to expanding your business and serving more customers.


As you can see, POS financing provides many benefits to merchants as well as shoppers. The most important factor in your consumer financing strategy is working with a firm whose goal is to provide exceptional service and support. The UCFS team is ready to deliver POS financing solutions that will help your business grow –– starting today.