What is retail finance?

Retail finance, in its most simple form, is consumer credit at checkout without the need for a credit card or an external lender. It’s the incorporation of a credit system into the customer journey. This can be done by integrating with a third-party, like ourselves, who specialises in POS finance.

Retail finance options include interest free credit, interest bearing loans or ‘buy now, pay later’ arrangements. Most customers tend to choose the option of interest free credit over interest bearing as they only ever pay the amount of the full purchase. Even in cases where customers are unable to/chose not to purchase online, there is evidence that POS finance can drive significant revenue uplift both in-store and over the telephone.

Increase your customer approval rates by up to 35%

The benefits of retail finance

Retail finance tends to show the biggest gains when it comes to big ticket items such as sofa suites, education and electronics. For example, something with monthly instalments of £100 over the course of a year looks more affordable to a customer than a one-off payment of £1,200.

However, as a retailer, your first thought may be that working with such retailer finance lenders may cannibalise your margins. Research shows that conversion rates, upselling and customer loyalty all increase when the offer of interest free credit is available.

In recent years, POS finance has sustained a growth reaching £1.8 billion, equating to a year-on-year growth of 9%.

Boost your sales with interest free credit

The likelihood is that providing retail finance to customers will give your sales a significant boost and give you the ability to steal potential customers from competitors who do not offer interest free credit. Interest free credit has accounted for 1.5% of all retail sales in the last year and is expected to grow to 2% in the coming year.

Unlike other retail finance providers, our concept is simple. As a partner of DivideBuy, you are not required to hold an FCA licence to offer retail finance to your customers. This is because our interest free credit option is up to 12 months with a maximum number of instalments also being 12 which does not require a retailer to hold authorisation, potentially saving you thousands.

Furthermore, the main retail finance providers include retailers, broker platforms, finance companies and eCommerce platforms. DivideBuy supports its retailers (without the need for a 3rd-party broker) as a fintech company, integrating with the most popular UK eCommerce platforms. Sounding like we tick all the boxes? That’s because we do.

Why DivideBuy

At DivideBuy, we provide retailer finance solutions across all sectors, from home furnishings to training and education. Rather than needing your customer to seek external finance options, our structure allows them to complete an order directly through the checkout. We’re entirely independent and are not reliant on brokers or 3rd party lenders. Our unique credit decision engine takes away the need for an underwriter and we are the sole lender of the credit we provide.

Using DivideBuy as your retailer finance option can increase your customer approval rates by up to 35%, removing their need to require external credit support to help complete a purchase.

Today’s consumers aren’t a patient crowd. With smart technology at hand, the world’s become used to getting what they want, when they want it. With our unique in-house technology, our retail finance option can help cater to this expectation; it’s a win-win, and the customer gets their item comfortable in the knowledge they are spreading the cost monthly.


One-step integration

Our industry-leading technology integrates seamlessly with your eCommerce software.

Customer checks out

Customers choose DivideBuy’s interest free credit option at checkout and commit to paying in monthly instalments. We handle all application and credit processing.

Get paid!

When you deliver the goods, simply confirm the details in your portal and receive fast payment. As the credit provider, we bear the credit and fraud risk, not you.

Book your free 20 minute online demo

Tell us about you
Please note, a minimum turnover of £2.5M and minimum trading period of 24 months is required to offer DivideBuy finance solutions.

Please note, a minimum turnover of £2.5M and minimum trading of 24 months is required to work with DivideBuy.

Guides to retail finance

Buying Retail Finance: Tips for pre-onboarding success

Onboarding tips? On the double. Here are some important factors to enquire about ahead of getting your finance solution going – from integration to go-live.

Buying Retail Finance: Choosing your provider

Whether you’re new to finance, or looking for a change, this practical guide contains key questions to ask – and successfully choose the right provider for your business.

Financial promotions guidelines – How to advertise compliantly

If you’ve added retail finance options to checkout, it’s time to let customers know! Here’s how to do it safely and compliantly – while spread the good news.

A buyer’s guide to retail finance – How to choose the right provider for your business

Offering retail finance options to customers can help increase sales and market share. Following this step-by-step guidance will help you make an informed decision that will benefit your business.

Win a luxurious Swyft armchair worth up to £895!

Ends 31st of December 2023

Our merchant partner Swyft is giving one lucky winner a Model 01 or Model 02 armchair worth up to £895. These bestselling armchairs sit on a solid wood plinth and come in a variety of fabrics and colours.

Throw your name in the hat to win and sign up now! 

Skip to content