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Benefits of Outsourcing Financing vs In-house Financing for Furniture Stores

In this article, we explore the benefits of outsourcing consumer financing for your furniture store and why utilizing this alternative payment method is the best decision you can make for your business.

What is Financing?

Furniture stores with outsourced consumer financing programs provide loans to their customers through a third party, allowing shoppers to purchase the pieces they want. The customer then makes payments to the financing firm over a set period until the loan is repaid.

Financing facilitates the purchase process for customers who don’t have the cash to pay in a lump sum or who don’t have access to a credit card. This benefits furniture stores because they can broaden their customer pools and increase their average order values.

Financing programs allow shoppers to pay for their furniture through low monthly payments. In breaking up the price of a piece into perhaps 12, 18, or more payments, shoppers know they can confidently and more easily repay the loan without impacting their daily budget.

Outsourcing financing is both efficient and effective compared to an in-house furniture financing program. Utilizing the services of a third-party provider like United Consumer Financial Services enables furniture stores to reap the benefits of offering financing without the responsibility of payment collection, losses from customers who don’t repay their loan, potential lapses in cashflow, and customer support pertaining to payment plans. Meanwhile, customers enjoy quick access to installment loans, so they can bring home the pieces they want the same day.

Outsourcing furniture store financing results in a win-win for both buyer and seller.

Financing is a must-have payment option for furniture stores, and outsourcing your financing programs is an ideal method for offering payment alternatives to your shoppers.

Benefits of Financing for Furniture Stores

There will always be a market for furniture. Whether individuals want to change the feel of a space or if they’re moving and need new pieces to fill their home, the need for new furniture is ever-present.

Furniture stores know this, and by outsourcing their financing, they make their pieces accessible to the most shoppers possible. With greater affordability and accessibility to their inventory, furniture stores that take advantage of third-party financing move more items and cater to a larger share of buyers.

Below we outline the many benefits of third-party financing for furniture stores.

Help Customers Get the Furniture They Need

Furniture stores carry a huge variety of pieces with equally diverse price tags. Larger sets and more expensive items might pose a challenge for customers. While these items are attractive, some shoppers might find that the prices don’t fit into a budget. If a customer doesn’t have access to credit cards or has the cash on hand to pay upfront, high-end inventory is possibly out of reach.

However, you make every piece in your showroom affordable by partnering with a firm like UCFS to provide consumer financing for your furniture store. Through third-party financing, you allow customers to take advantage of installment loans.

Low monthly payments remove the pressure of a big price tag and make high-end furniture accessible. Instead of being overwhelmed by a single lump sum payment, shoppers enjoy the ease of furniture financing programs. Financing through UCFS breaks down your prices into reasonable, attainable costs that more customers can afford.

And while customers pay off their loans through monthly payments, UCFS pays the business directly, so you don’t see stalls in your cashflow. Outsourcing your furniture store financing helps maintain a steady cashflow, which is vital for your business’s health.  

Offering Consumer Financing May Help with Repeat Business

Existing customers are your key to increasing your sales and moving more inventory. In fact, research shows that businesses have a 60 to 70 percent likelihood of selling to an existing customer. The probability of selling to a new customer falls to as low as 5 percent. These numbers show that you will sell more furniture to repeat customers.

As you formulate your furniture store’s marketing and customer retention strategy, understand the importance of building lasting relationships and earning repeat business. Providing financing brings shoppers to your store and keeps them coming back.

Your customers want furniture that is beautiful, comfortable and fits their style. But many shoppers don’t have the cash on hand to buy the pieces they need or want. When you advertise that you offer furniture financing, shoppers know that they can browse your selection, find the perfect piece, and bring it home on the same day.

Offering furniture store financing gets people through the door. And when the time comes to make the sale, third-party financing empowers your customers with confidence that they can pay for their new furniture with predictable, low monthly payments.

Financing incentivizes shoppers to choose your furniture store over your competition. And when they shop with you once, stats show that they’ll shop with you again.

Attract New, Younger Homeowners

The housing market is as active as ever. The National Association of Realtors notes that home sales are the best they’ve been in 15 years. Last year, first-time homebuyers made up 34 percent of all buyers, up from the previous year’s 31 percent.

But what does the housing market have to do with the furniture industry?

People buying homes –– especially first-time buyers –– want and need to fill their new home with new furniture. And on the heels of a new mortgage and closing costs, many of these homeowners need an affordable way to bring furniture into their home.

Furniture store financing appeals to the droves of individuals who have just spent thousands on their down payments. Consumer financing options allow people to bring home pieces for their new space without dipping into their remaining savings. When presented with low monthly payments, shoppers feel confident they can afford the furniture they want for their new home. Furniture store financing also allows shoppers to upgrade to pieces they might not have considered without payment options.

By offering furniture financing, you target a new, large group of people who want furniture and need responsible, affordable ways to bring it home. UCFS provides low monthly payment plans that make financing easy for your shoppers.

Financing and Store Promotions

Sales and promotions bring shoppers to your showroom. People need and want the products you sell, and many smart shoppers wait until furniture stores run sales or promotions to snag the perfect piece.

We’ve already explored how financing can draw customers to your business. You can also leverage your financing options to make your storewide sales and promotions more appealing to shoppers.

A few dollars’ difference may not influence a shopper on a tight budget to make a purchase. However, if they realize they have financing options, buying new furniture can be within reach. They’re more likely to choose a furniture store with financing options over one without because low monthly payments are doable when a large lump sum payment is not.

As you advertise sales, emphasize your furniture financing options. Make customers aware that they can bring home new furniture while completing payment over time. Outsourcing your furniture store financing through a partner like UCFS makes monthly payments simple.


Outsourcing your furniture store financing allows you to reap the benefits of offering financing options. At the same time, a professional firm like UCFS handles payment collection, pays the business within a few days, takes the risk of consumers not repaying their loans, and handles customer support. Working with UCFS for your furniture store financing gives you the freedom, flexibility, and support you need to run your business. Contact our team today to begin offering financing for your furniture store.