Today, furniture stores are primed to sell more inventory than ever. In 2023, sales by home furnishing retailers reached $63.76 billion, a new industry record.
Consumers are ready to buy –– if the price is right. The need and desire for home furnishings are there; it’s up to furniture retailers to make these pieces affordable and accessible to an eager customer base. Implementing a consumer financing program is the most effective, immediate avenue for increasing affordability and boosting sales in your furniture store. But how do you find the right financing partner for your business?
This article provides the answer. Read along as we determine how to choose the best consumer financing company for your furniture retail store. We’ll highlight must-haves and deal-breakers and help you evaluate the ideal options for your business. Let’s get started.
Simple Application that Streamlines Purchase
Consumer financing done right helps usher consumers through their buying journey and drives them to purchase. It’s a vital tool that makes your inventory more affordable and reduces stress in the purchase process. A robust financing program will help you build customer engagement, increase sales volume, and boost average order values.
However, consumer financing will only accomplish these goals if it is user-friendly. Furniture retailers need financing programs that simplify purchases and reduce friction in the buying process to enhance the customer experience.
As you explore financing partnerships, look for firms that provide simple, straightforward applications. Convenience often determines whether a shopper will take advantage of a financing program. If there are too many steps or the application takes too long, chances are the shopper will back out, and you’ve lost a sale.
United Consumer Financial Services prioritizes ease and convenience with our customer financing applications. Salespeople or your customers can complete the credit application, which takes about 3 minutes. Your business will be alerted almost immediately upon credit application approval. After furniture selection is finalized, the salesperson can execute the contract, and the customer eSigns it from their phone or store computer. Your salespeople then rings the sale with a “financing” payment type. Shoppers can take immediate advantage of financing to choose the furniture they want and either schedule delivery or bring it home that day.
Consumer financing empowers shoppers. Look for a firm that makes application fast and easy for your customers to choose the mattress or furniture pieces they want when they need and want them.
High Approval Rates to Broaden Your Customer Base
Consumers want flexible financing options for big-ticket purchases like furniture. Regardless of age demographics or even credit tiers, installment loans appeal to shoppers who want to bring home their high-value purchases without the burden of a large up-front cash payment. Recent research found that 17 percent of credit card owners opt for at least one “Buy Now, Pay Later” purchase each year. Even with access to a credit card, consumers see the value and convenience of consumer financing options.
And for shoppers with less-than-ideal credit or no access to a traditional loan, consumer financing opens the door to opportunity. Alternative payments, like installment loans or BNPL options, increase access for shoppers without lump sum cash or credit cards. When consumer financing is the path to purchase for many of your furniture store’s customers, choosing a financing partner with high approval percentages is essential.
Consumer financing increases affordability and, therefore, sales for your store. But it’s only effective if these options are available to real-world consumers. Look for a financing partner that boasts high approval rates. The higher these rates, the more customers you can serve and the more furnishings you can sell.
Fixed Interest Rates and Consistent Expectations
When shoppers walk through your doors, find the perfect sofa or bed, and apply for consumer financing, they learn their exact monthly dollar payment amount and the number of months to pay off their loan, perhaps 24 or 36 months. No surprises. This contrasts to revolving credit cards with variable rates or super high APRs with very low minimum payments, which can take 10+ years to pay off. With revolving credit, interest accumulation can be astronomical. With consumer financing, affordable monthly installment amounts and their normal monthly expenses are typically easier for customers to handle. Ensuring fixed rates for your consumer financing program provides the consistency and predictability your customers want.
Fixed rates and a set schedule tell consumers exactly how much to budget each month, and autopayment features ensure shoppers never miss a payment.
Consistent rates, a set schedule, and convenient payment options allow you to set customer expectations from the beginning of their loan repayment. A transparent fee structure and payment plan positions your shoppers—and your business—for success.
Prompt Payment for Predictable Cashflow
Positive, consistent cash flow is essential for the day-to-day running of your furniture retail store. From payroll to utilities to new inventory acquisition, cash drives business health and sustainability.
As you shop for consumer financing partners, look for a firm that delivers timely payment to your store. You can have the best team, products, and sales volume, but if your consumer financing partner doesn’t deliver prompt payment, you have nothing to show for it. Your earnings are only useful if you have access to them, and if you’re waiting weeks for your financing partner to compensate you, you’re putting your business at risk.
United Consumer Financial Services sends payment directly to your bank account in one to two days, ensuring cash flow for your furniture store and giving you access to your cash earnings to pour back into your business. Don’t leave cash flow up to chance; opt for a financing program that delivers fast, reliable payments straight to your accounts.
Real-World Financing that Works
Your consumer financing partner plays a significant role in your furniture retail company’s reputation, service capabilities, profitability, and long-term success. You must choose a firm that provides practical solutions for your customers and your business’s unique needs.
United Consumer Financial Service delivers real-world financing to our clients. We simplify the process, from customer application to collection to payment, freeing you to invest your time and energy into growing your business.
Becoming a merchant with UCFS is simple. Reach out to our team today to learn how our consumer financing program can support your furniture retail store and help your business grow so that more of your customers can afford their purchases.