Savvy consumers know they have choices. When shopping around, they’re not only comparing products and services; they’re evaluating payment options too. Given the choice between credit cards (that come with high interest rates, revolving debt, and inconsistent balances) and predictable, affordable monthly payments, consumers want the latter.
Many businesses assume cash and credit payment options are sufficient for their customers. United Consumer Financial Services, a trusted consumer financing partner for businesses across the U.S, challenges that notion. Payment structure shapes shopping and buying behavior. When customers have access to consumer financing, businesses see more sales and greater revenue because they’re giving shoppers payment options that fit their wants and needs.
Read on to learn why shoppers are moving away from credit as their default and seeking out financing as the new norm.
The Problems of Limited Payment Options & Why Financing is the Solution
Credit cards feel convenient in the moment. But for buyers financing a larger purchase, that convenience often comes with a cost they don’t fully register until the bill arrives. Below are just a few friction points consumers feel when they opt for credit cards and how providing consumer financing is the better choice –– both for your consumers and your bottom line.
The balance never has a clear end date: Minimum payments are designed to keep balances revolving, not to pay them off. A buyer making only minimum payments on a $1,500 purchase can take years to clear it, paying far more than the original price along the way.
How financing solves it: Consumer financing sets the term upfront. The buyer knows exactly how many payments remain and when the balance hits zero. Financing plans establish clear expectations and deliver a better customer experience than high-interest credit cards.
Variable interest rates create moving-target costs: Most credit cards carry variable APRs tied to broader rate conditions. A buyer’s cost to carry a balance can climb over time, even if their spending habits don’t change.
How financing solves it: Rates are fixed at the point of sale. The payment a buyer agrees to on day one is the payment they make for the life of the loan. No surprise rate hikes translate to happier customers who can confidently plan their financed purchases.
Every purchase competes for the same credit limit: A large purchase on a credit card eats into the buyer’s available credit across everything else they might need that card for, from emergencies to everyday spending.
How financing solves it: Financing runs on its own track, separate from the buyer’s existing credit lines. The purchase gets paid down on its own terms without tying up capacity the buyer may need elsewhere, making consumer financing options ideal for consumers across credit profiles.
What Payment Flexibility Means for Your Business
Predictability drives the “yes” when shoppers are on the fence about their purchases. When the choice is between inconsistent costs or affordable, scheduled monthly payments, fixed payments beat credit cards and help convert more customers. Here’s how:
- Pricing certainty addresses decision paralysis: A simple, straightforward financing option reduces friction in the sales and buying processes. Instead of doing the mental gymnastics of charging the purchase to a high-interest credit card, shoppers can know their exact monthly payment dollar amount, making it easy to buy now.
- Lower payments translate to higher average order values: Buyers can commit to larger purchase when the payment feels manageable. Even budget-conscious shoppers can easily fit an affordable payment into their planned monthly spending.
- Affordable monthly installment payments lead to greater quote acceptance: Credit card payments can scare shoppers with the risk of revolving debt, and the sticker shock of charging a lump sum to a high-interest card is often enough to cause a potential customer to abandon their purchase or project. And, what if the customer’s credit card limit is not high enough to cover the cost of the purchase in full! That’s a showstopper. Predictable, affordable payment plans are a conversion lever that reduces cart abandonment and helps your team secure more sales.
- Consumer financing options differentiate your business: With more consumers seeking Buy Now, Pay Later options than ever, earning sales and growing business requires companies to offer flexible payment options. Financing is a competitive differentiator against other businesses that only offer cash or card payment.
What to Look for in a Consumer Financing Partner
Point-of-Sale financing adoption has nearly doubled since 2023, with more than 27 percent of households opting for installment loans. This rise in consumer financing use directly correlates to a decrease in the share of spend going to credit cards (down 70 percent to 58 percent since 2022).
Shoppers want payment flexibility, and they’re exploring options outside traditional cash and credit. Partnering with the right consumer financing firm will help your business capitalize on your financing program, better serving customers as you increase sales and revenue.
As you evaluate providers, a few criteria characterize the partners who drive real conversion with simple, accessible payment options:
- Hands-on training and onboarding: A financing program is only as effective as your team’s ability to use it. UCFS provides one-on-one onboarding with multiple dedicated representatives, covering everything your team needs to begin in under an hour. After your business is approved as a merchant partner, this design allows you to launch almost immediately with direct phone, email, and portal access to ongoing support as questions come up.
- Flexible financing options: Your business needs a program that matches your risk tolerance and customer base, not a fixed template. UCFS offers adjustable pricing strategies, letting merchants choose a more conservative approach with tighter approvals or a higher-volume strategy that extends financing to more customers, including those with less-than-perfect credit.
- A fast, frictionless application: Every extra step at checkout is a chance for a customer to reconsider. UCFS takes a mobile-first approach to application that returns credit decisions in seconds so customers can complete their purchase on the spot.
- Transparent pricing: Hidden fees and shifting rate structures erode trust. UCFS maintains a clear, consistent cost structure with no surprise fees, so you (and your customers) always know what you’re agreeing to.
- Proven industry experience: Look for a partner with a track record in your specific industry, verified through testimonials, case studies, and regulatory compliance. UCFS boasts more than 45 years of financing expertise and a long history of satisfied merchants.
- Full lifecycle management: Choose a provider that manages the entire loan, giving you visibility into approvals, payment behavior, and portfolio performance — without tying up your own team’s time and resources. UCFS handles the full loan lifecycle, accepting consumer repayment for the life of the loan, so you and your team stay focused on growth.
Providing the Payment Option Consumers Want
Broader financing adoption trends tell us what buyers clearly want: payment flexibility at purchase. United Consumer Financial Services, a Marmon company, a division of Berkshire Hathaway, is the ideal partner for businesses and merchants seeking affordable, accessible financing platforms. With nearly fifty years of expertise serving clients nationwide, UCFS partners with businesses to offer this fixed-payment experience to consumers with a wide range of credit profiles and payment preferences.
Don’t lose any more sales due to rigid payment options that don’t fit your customers’ needs. Contact UCFS today to learn how our consumer financing platform can help you reach more shoppers with the payment flexibility they’re looking for.
