How To Offer Credit To Your Customers

From Brexit uncertainty to the UK’s record low in customer confidence, there are many reasons why shops and retail sites are offering their customers credit. Top brands are now presenting alternative payment options to shoppers who are unable to pay the full balance of their purchase.

For tackling basket abandonment and improving sales, it works wonders. And applying for retail finance as a merchant is a simple, straightforward process. Here’s an overview of how to offer credit to your customers, and where to begin.

Before You Apply

You can offer credit to your customers in a few easy steps and with a quick online application. But first, you will need to consider the requirements to get started.

Your FCA Licence

Applying for your FCA licence can take between 6 to 12 months. As a retail finance partner, we help our clients obtain the FCA permissions that they need. So if you’re unsure about how to go about getting your licence, speak to one of our Relationship Managers for more information. If you’re looking to get started straight away without a licence, there are products that can still be offered to you. Such as our 0% interest finance product, which is under a non-regulated agreement.

Merchant Criteria

When applying, a retail finance partner may have their own set of criteria in order to approve you as a merchant. For instance, we ask that your business has been trading for 12 months, with a turnover of at least £250,000. Although, we do sometimes make exceptions for businesses so it’s worth getting in touch to find out more.

How to Offer Credit to My Customers In-store

When it comes to offering finance in-store, training for your customer services team is vital. This is because your team will be customer-facing, so they need to be well-educated in the financing products available. In addition to staff training (which comes as standard at Duologi), you will also need to think about the following:

  • POS (Point of Sale) and other in-store advertising
  • A marketing plan to promote finance offers
  • Enough resources to assist customers with applications

For shop floor sales, one of the most useful financing tools to ask about is shadow limits. This allows your finance partner to check your customer’s credit history and notify you of their maximum borrowing limit. This creates an opportunity for upselling, and provides sales advisors with more scope for recommending products. Not only can this increase high value sales, but it allows you to find the best possible products to fit a customer’s needs.

How to Offer Credit to My Customers Online

For online retail finance, integration and setup is easy. Our financing technology can integrate with any retail platform, including Magento, Shopify, WordPress, and more. We have a number of easy-to-use plugins which start to work instantly, so you could be offering finance on the very same day.

It’s even easier for your customers as the finance option will automatically appear at checkout. Purchases can be completed in under three minutes, causing no disruption to the customer journey. After integration is complete, some things you will need to action are:

  • Updated website copy to advertise finance
  • An online marketing plan to promote offers
  • Training for your customer services team

Choosing the right financing product for your customers is also very important for online retail. Our 0% interest finance for 12 months doesn’t require an FCA licence, which means you could get started straight away. Or visit our products page to find out more about the type of financing products available.

To speak to someone about how you can offer credit to your customers online or in-store. Give us a call on 0333 1303 968 or drop us a note on our Contact Us page.