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“What’s the one thing all merchants want or need from their lender?”
I was asked this recently, and while it’s a great question, the answer isn’t straightforward. There’s no golden bullet.
What a merchant wants from their lender depends on what they sell, who they sell to, and how they want customers to experience their brand.
A jeweller offering short-term interest-free credit will want a very different approach compared to a home improvement brand offering regulated finance on a solar panel installation. Different expectations, different customer journeys, different risk profiles.
But there are some requirements that remain consistent for all merchants. Let’s dive a little deeper into that now.
Flexibility that fits the merchant profile
Finance needs to work around the merchant’s product, margins, seasonality, and customer base.
Whether it’s interest-bearing or interest-free, short-term or over several years, it needs to be relevant to the way the merchant sells.
Speed and simplicity – balanced with responsibility
In lower-value, higher-volume sectors, merchants expect a fast, seamless application. But for considered purchases, the customer journey needs to allow space for decision-making.
This is where positive friction plays a role. It’s not about slowing things down for the sake of it. It’s about supporting better decisions, higher conversion, fewer dropouts, and ultimately a better buying experience for customers.
Underwriting that reflects reality
Approval logic needs to reflect the nature of the product and the profile of the customer. Risk models that work well in online retail might not translate to home improvement products or high-value luxury goods.
Merchants want to know their customers are being assessed fairly and based on the product, not generically.
Customer journeys that protect the brand
From a customer’s perspective, the finance experience is part of the merchant’s brand. If it feels clunky, inconsistent or hard to trust, it reflects on the merchant.
Whether it’s a branded journey or not, the expectation is the same: make it seamless, make it clear, and make it feel like part of the experience.
Post-launch support
Merchants want ongoing support: performance reviews, insight sharing, and new product rollouts that respond to their evolving business. The lender/merchant relationship should be a partnership, not just a supplier-client setup. From the very start of the relationship, both parties should understand each other’s goals and define a mutual success plan.
So no: it’s not one thing.
It’s about bringing together the right mix of product, experience, and ongoing support, built around the merchant’s and consumer’s world.
