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Guide To Dedicated Consumer Financing

Dedicated consumer financing empowers businesses like yours to thrive in today’s competitive market. Please read our guide to dedicated consumer financing to learn how your company can benefit from offering these services to your customers.

What is Dedicated Consumer Financing?

Dedicated consumer financing empowers shoppers to make their purchase decision right away! For that big-ticket item or service. This payment method acts as an alternative to other purchase options:

  • Charging the cost to a credit card
  • Taking out a personal loan from a bank
  • Pulling cash from savings
  • Asking for a loan from family or friends

When a business or merchant provides dedicated consumer financing to their shoppers, they streamline the purchase process and increase shoppers’ confidence and buying power.

Dedicated consumer financing involves providing low monthly payments to consumers who can use it only with your business. Dedicated financing is unique to your company, unlike a credit card that a person can use anywhere that accepts card payments.

In-House vs. Third-Party Dedicated Consumer Financing

Dedicated financing provides many benefits for both your customers and your business. When choosing your financing program, you have two options: in-house and third party.

In-house financing means your business handles all financing operations. From customer application to routine payment collection to contacting customers who miss their payments, your team is responsible for managing all financing tasks. While it might initially seem appealing, in-house financing drains resources and can cause problems with your cash flow.

Third-party dedicated consumer financing is the ideal solution for businesses wanting to provide purchase options for their consumers. When you work with an experienced third-party consumer financing firm, you reap the rewards of a time-tested service specific to your industry.

You aren’t burdened with the responsibility of payment collection, losses from customers who don’t repay their loan, potential halts in cash flow, and customer support regarding payment plans.

Outsourcing your dedicated consumer financing gives you access to the benefits of financing without the responsibility and resources required to manage your in-house program.

Benefits of Offering Dedicated Consumer Financing

Deciding to provide dedicated consumer financing from a third-party firm immediately expands your growth opportunities. In addition, your business will enjoy many benefits from offering financing, a few of which we explore below. 

Incentivize Customers to Shop with You

Shoppers want and need financing options. One study found that roughly 60 percent of consumers have taken advantage of consumer financing to bring home their purchases. As a result, what was once a fringe payment method is now not only mainstream but has become an expectation for many consumers.

Dedicated financing incentivizes customers to shop with you. Financing solutions provide freedom and flexibility for individuals who want payment options. When you offer dedicated financing, you meet a need while promoting the sale of your goods or services.

Offering dedicated financing options for your business provides shoppers with access to non-traditional methods of payment. Instead of doing the purchase work through other means with other companies, your customers know you provide financing that makes their purchases possible. With this knowledge, shoppers have no reason to look elsewhere. They know you make the payment process simple and affordable with consumer financing, incentivizing them to choose your business over your competition.

Get Paid Fast

Dedicated consumer financing serves your clients, but you reap many benefits as well—one of those being quick repayment from your financing firm.

As we explored above, in-house financing programs put you at risk for potential loss if a customer doesn’t make their loan payments. A halt in cash flow –– even a temporary halt –– can be detrimental to businesses of any size. It would be best if you had the cash flow to keep up with your current or future debts and increase growth opportunities.

Dedicated consumer financing through a third-party firm allows you to provide financing while getting paid fast. For example, when you partner with United Consumer Financial Services, you receive payment via ACH within days of your customer signing their contract.

This quick turnaround allows you to proceed with your business operations unencumbered by lapses in cash flow. In addition, dedicated consumer financing gives your customers the resources they need to purchase while you receive prompt payment from your financing firm.

Fast Credit Approval Encourages Purchase

Dedicated financing incentivizes shoppers to choose your business. And it can also encourage same-day purchases.

For many individuals shopping for big-ticket items, committing to a purchase is not only a big financial step but an emotional decision. Emotion drives purchasing behavior, even if the consumer isn’t aware of it.

When creating a sales flow, you want to make every decision as simple and streamlined as possible for the consumer. When the buying process is effortless, shoppers gladly take the next step, and then the next, until they’ve completed their purchase. Likewise, when providing dedicated consumer financing, you want to ensure the application process is quick and seamless. Fast credit approval encourages shoppers to proceed with their purchases.

When choosing a consumer financing firm for your business, you need a partner that offers a user-friendly application and prompt notice of approval—the easier and quicker the financing application process for your clientele, the better.

Increase Sales and Average Order Value

Financing increases a shopper’s buying power by allowing customers to break down large lump sum tickets into low monthly payments. When you offer to finance, you provide options enabling shoppers to choose what to buy –– and when.

Dedicated consumer financing increases sales and your average order values. Shoppers are more likely to make purchases –– and are more likely to increase their cart size –– if they have access to financing.

With financing, many customers increase their purchase amount because spreading an increased dollar amount might only add $10 or so per month over the life of their loan. Please talk with your customers about financing options to show them that they can bring home their purchases with affordable monthly payments that fit their budget.


Dedicated consumer financing is necessary for businesses looking to attract customers, move more products, and take advantage of increased cash flow opportunities. And choosing the right financing firm plays a significant role in your consumer financing program’s success.

If you’re ready to explore the benefits of dedicated consumer financing, reach out to our team today.