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Guide to Fixed-Term Retail Installment Contracts or Loans

Offering consumer financing options brings many benefits to your shoppers and your business. This guide walks you through everything you need to know about fixed-term retail installment loans and how providing this option can help your business grow.

 What is a Fixed-Term Retail Installment Loan?

Fixed-term retail installment loans or contracts allow consumers to pay for goods or services in monthly installments over a set period of time. Retailers, distributors and service providers offer these installment loans at the point of sale, giving consumers more buying power and greater confidence to make their buying decision.

United Consumer Financial Services makes fixed-term retail installment contracts simple for both the consumer and merchant. We provide the solution a business needs to promote customer engagement, boost sales, and increase customer loyalty. Read on to learn how.

How Installment Loans Work

Fixed-term retail installment contracts provide an affordable, accessible means for shoppers to purchase their big-ticket items or move forward with a service. With UCFS, the process is simple.

To begin, the business fills out UCFS’s merchant agreement. After review, approval and setup, the business has their sellers offer consumer financing: in-person in a consumer’s home, in-store, from a call center representative, from a medical practice or other service provider, or online. When shoppers want to take advantage of consumer financing – low monthly payments – they apply by speaking with a company representative, salesperson, dealer or complete their own credit application through the UCFS credit app link posted on your website. Application is simple and notice of approval is provided quickly, usually in minutes. Once the customer is approved for financing, they can confidently make their purchase. The buyer can get their service or product right away and make scheduled monthly payments to UCFS through the life of their loan.

Meanwhile, UCFS funds the business, usually in a few days, for whatever rate had been set up between the business and UCFS. UCFS retains a small percentage of the contract amount. Thanks to installment loan financing, your business sees a smooth cash flow, and your customers enjoy the convenience and ease of affordable monthly payments.

Fixed-term retail installment contracts through UCFS are easy to apply for, affordable and straightforward for your shoppers, and you have the benefits of providing financing options for consumers. Below we walk through the many ways UCFS’s consumer financing solutions empower both you and your customers.

Benefits of Installment Loans for Your Business

Fixed-term retail installment contracts benefit businesses across myriad industries and markets. Offering consumer financing gives you a competitive advantage over other companies in your industry and allows you to provide superior service to your customers.

  1. Attract More Shoppers to Sell More

Many shoppers find it difficult –– or even impossible –– to afford the big-ticket goods and services they want. When consumers don’t feel like they have resources, they won’t have the confidence to shop with you. But when you offer fixed-term retail installment loans, you change their mindset.

Installment loans provide purchase options for your consumers. When shoppers learn you offer low monthly payments, they are more likely to choose you over your competition. This is because you make yourself accessible to get them desired purchase. By offering installment loans –– low monthly payment for a set period of time, perhaps 24 or 36 months –– you attract more customers and increase your sales.

  1. Consistent Cash Flow

Cash flow is essential to businesses of any size. Working with UCFS to offer fixed-term retail installment loans enables you to provide financing solutions without jeopardizing your cash flow.

When you offer consumer financing through UCFS, you receive direct, prompt payment, usually within days of contract signing. As a result, your shoppers make their purchase the same day, and you don’t have to wait on their payment to provide the cash flow that supports your business’s needs and goals.

  1. Customer Referrals, Customer Loyalty and Repeat Business

Acquiring a new customer can cost five times more than selling to existing customers. However, you can increase your profits up to 95 percent when you focus on customer retention. Offering fixed-term retail installment contracts is key to increasing customer loyalty and repeat business. And with satisfied customers –– come customer referrals.

Earning repeat customers begins with earning the shoppers’ trust –– and business. When a customer buys from you once, the likelihood they’ll purchase from you for future needs sits between 60 and 70 percent. Existing customers are also 31 percent more likely to have higher average order values than new customers.

As we saw above, offering consumer financing options increases the probability a shopper will patron your business. And once you bring them in with payment options, they’ll likely remain your customer for life.

Benefits for the Customer

Businesses aren’t the only party that benefits from fixed-term retail installment loans. Consumers enjoy greater purchasing power, more confidence, and, ultimately, a better quality of life because their buying options increase.

  1. More Access for Borrowers with Not-So-Good Credit

Traditionally, shoppers with not-so-good credit cannot acquire loans to purchase the goods they need. But point-of-sale financing provides access to consumers with less-than-ideal credit scores. In addition, UCFS provides installment loans to individuals who might have difficulty acquiring traditional loans from banks or credit unions, increasing the number of customers you can serve.

  1. Fast Notice of Approval

Shoppers don’t want to wait to purchase their big-ticket items. And when you partner with UCFS to provide fixed-term installment loans, they don’t have to.

UCFS offers a simple application process with prompt approval notice, most instances in just a few minutes. Quick approval means your customers can continue shopping to make their purchases the same day while enjoying the ease of affordable monthly payments.

  1. Fixed Payment Plans

Consumers who opt for fixed-term retail installment loans want consistency and predictability in their payment plans. UCFS provides shoppers with a fixed payment plan –– perhaps $100 or $200 per month –– that expands their purchase power and leaves their regular monthly expenses still covered. They have access to UCFS’s customer portal to see payment history, account information, and the remaining balance on their loan. 

  1. Helpful Customer Support

UCFS’s customer service team is based in Cleveland, Ohio. The helpful, knowledgeable service team can answer all your customers’ payment questions.

Accessible customer support gives shoppers confidence in their purchase and your brand or business.

Talking with Customers about Installment Loans

Fixed-term retail installment loans are ideal for most shoppers. Knowing how to talk with consumers about financing gives them the confidence to take advantage of these payment solutions.

  1. Introduce Financing Early

Talk about installment loan options early and often in your customer’s buying journey. If they know they have buying options, they’re more likely to make a purchase, and they’re also more likely to increase their purchase value.

  1. Emphasize the Simplicity and Ease of Financing

The idea of taking on a fixed-term installment loan intimidates some shoppers. When talking through purchasing options, emphasize the simplicity and ease of financing through UCFS. Preemptively answer the questions your consumers might have to show them that the process is simple, accessible, and ­­–– most importantly –– empowers them to make the purchases they want to make.

  1. Show Upgrades They Can Get with Installment Loans

When shoppers have the option to break up a lump sum payment into affordable monthly installments, they have more room in their budget to make their purchases. In addition, installment loans provide customers with the option to choose upgrades or additional services that might not otherwise be possible without financing options. Show them the upgrades financing affords them. That information encourages shoppers to take advantage of the solutions you offer through UCFS.


You want to provide exceptional goods and services to the highest number of customers possible. Partnering with UCFS to provide fixed-term retail installment loans empowers your customers with greater buying power, and you enjoy higher revenue, more significant growth, and increased customer satisfaction.

Contact the team at UCFS today to learn how our consumer financing solutions can help your retail business today. Our phone number is 877-373-3482.