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The Beginners Guide to Third-Party Financing For Your Business

Today’s shoppers seek out financing options to purchase their big-ticket items. By offering third-party financing, you empower your customers to bring home the goods or services they want. Below we explore the benefits that third-party financing brings to your business.

What is Third-Party Financing?

Many consumers do not have the resources to pay for big-ticket items or services in one lump sum. As a result, they seek payment options that allow them to bring home their goods while simultaneously sticking to their planned spending. As a result, payment alternatives like third-party financing are exploding in popularity as shoppers seek new ways to pay for their purchases over time.

Offering financing options makes your business and your products or services accessible to a large pool of shoppers. You allow shoppers to confidently make purchases with financial responsibility by making financing available.

Running an in-house financing program consumes valuable resources. Financing requires time, money, and manpower. That’s why many businesses rely on third-party financing services to handle credit approval, upfront funding to the business, and consumer loan repayment.

Third-party financing firms like United Consumer Financial Services provide financing services to businesses like yours so you can reap the benefits of a robust financing service without the overhead and resources it requires of your team.

Benefits of Third-Party Financing

Third-party financing through UCFS is the ideal way to offer installment loan options to your shoppers. Below, we list the benefits of partnering with UCFS to provide financing payment plans through your business.

1. Efficient Use of Your Resources

The team at UCFS knows that your business resources are valuable. Third-party consumer financing allows you to offer payment plans to your shoppers without spending time, money, and manpower to run your financing system.

For more than four decades, UCFS has provided financing resources to merchants, distributors, and service businesses. We both know and can anticipate your needs, which has allowed us to tailor our financing solutions to our clients. In addition, we handle loan repayment collection and customer service, freeing you to utilize your resources to grow your business.

Some businesses choose to handle their financing in-house. In doing so, they burden themselves and their team with hours of work every week handling communication, payments, and collections. They often must hire an employee to carry out these tasks, resulting in expenses like payroll and benefits. But choosing UCFS as your financing firm eliminates the need for extra work and additional employees. Partnering with UCFS for your customer financing saves you valuable time and money and means UCFS takes the risk of consumer repayment.

2. Fast Financing Approval Makes the Sale

When consumers have access to financing options, they are more likely to purchase. This is especially true if they can easily apply and are approved quickly. Fast financing approval means shoppers can buy the goods or services they want almost immediately. As a result, they don’t have to walk away from an opportunity and lose the excitement surrounding their purchase.

UCFS provides fast notice of approval for your consumer financing applications. Shoppers fill out an application online, and UCFS sends a notice of approval quickly –– usually within a few minutes.

Shoppers want financing to be fast. So you give yourself a competitive advantage over your competition by offering quick approval speeds. And with more than 45 million consumers taking advantage of consumer financing services this year, you want to provide fast, affordable options that empower consumers to shop when they want: on the same day they visit your site, walk into your store or practice, or you visit their home for a product demonstration or service estimate.

Choosing third-party financing through UCFS puts you in a position to approve more shoppers faster, incentivizing your customers to purchase your products.

3. Increase Affordability

Price plays a huge role in your business’s approachability. All things equal, price is the primary factor that determines if customers shop with you or with your competition. By offering installment payment plans through UCFS, you increase the affordability of your goods, proving to shoppers that they can easily afford your goods.

Consumer’s perception of price is as important as the price itself. You break down a large lump sum price into affordable monthly payments when you offer third-party financing to your shoppers. For most shoppers, monthly payments are more approachable and achievable than a one-time larger payment.

Third-party financing offers ease and affordability to your shoppers. Even if your competition offers similar products or services, the ability for customers to break up their payments incentivizes them to choose you over anyone else.

4. Boost AOV and Conversion Rates

Many consumers feel limited when shopping for big-ticket items. Without cash on hand, they don’t have the freedom to choose the items or upgrades that they want. But third-party financing from UCFS changes that. By providing installment payment options, you give shoppers the freedom and confidence to make the purchase decisions that best meet their needs and wants.

By providing financing at the point-of-sale, you empower shoppers to purchase more without compromising their planned budget, which also benefits your bottom line. In addition, a partnership with UCFS to provide consumer financing increases your average order value, boosting your ROI for your marketing and advertising budgets.

Third-party financing allows you to provide consumers with the option to add additional products or services or choose upgrades that enhance their purchase. And many times, the option for consumer financing is the determining factor for their decision to buy with you at all.

For example, when an item’s cost is spread out over 24 or 36 monthly payments, shoppers can make those purchases confidently, knowing that they can easily fulfill those payments over time. In addition, smaller payments enable your customers to increase the value of their carts or choose add-ons that they wouldn’t typically choose when paying in a lump sum.


Third-party financing benefits your consumers while helping you grow your bottom line. Contact our team at UCFS today to learn how our financing services help you and your customers thrive!