Should retailers offer finance on all their products?

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Offering an interest-free credit option through DivideBuy allows your customers to spread the cost of purchases at no additional cost. Instead of paying for a product or a basket of products in one go, they can spread the cost over a term of between two and 12 months for the same overall cost.

 

This lets your customers manage their cashflow better without needing to save up, dip into existing savings or take on any costly interest-bearing credit.

 

It isn’t just your customers that stand to gain, either. With our interest-free credit platform, retailers can also benefit from higher average basket values and risk-free, guaranteed repayments. Other advantages include a reduction in cart abandonment, improved customer retention and increased customer loyalty.

 

One question we sometimes get asked, though, is whether you need to offer interest-free credit on all your products? And would you benefit from doing so? We’ll try and answer these questions below.

 

Do I need to offer finance on all my products?

No. With DivideBuy, this is left completely up to you.

 

Offering interest free credit is risk-free, enabling your customers to afford their purchases sooner. In addition, thanks to our innovative business model, we have a high acceptance rate and are able approve a greater rate of applications than other providers.

 

That said, you don’t have to offer it for every product on your website. You can choose to offer interest-free credit on all, some, or even just one of your products. Our product limit feature puts you in total control.

 

Our success stories demonstrate that offering an interest free credit option is a major draw for customers. On websites, for example, we know that promoting an interest-free credit option can convert more browsers into paying customers. If you only want to promote the interest-free credit option on a few of your products, however, or even just one particular item, that’s no problem for our flexible payment platform.

 

Would I benefit by offering interest free credit on all my products?

Ultimately, this is for you to decide. Nobody knows your products and your customers better than you do.

 

Retail finance, like our interest free credit option, tends to show the biggest benefits when it comes to big-ticket items, such as furniture, household electronics, or sports equipment. A new sofa with monthly instalments of £100 for a year, for example, is obviously more affordable than a one-off payment of £1,200.

 

However, there is significant evidence to suggest that it isn’t just big-ticket items people like to spread the cost of. More and more people are choosing to pay in instalments to maximise their cash flow and avoid having to dip into their savings for smaller purchases, too.

 

Some of our retail partners have a wide range of products, but only offer interest-free credit on some of the higher-value items, to maximise sales. It is a strategy that clearly works for them.

 

There is a risk, though, that if a customer sees that interest free credit is not available on a specific product on your website, they might choose to buy it from somewhere that does offer a credit option for that product.

 

That’s why so many of our retailers prefer to offer interest-free credit on every product, to make the process easier for customers and to keep them satisfied, no matter what products they are interested in.

 

To make these decisions easier, we offer a free retailer portal that lets you review orders, sales cycles, and other performance data to make more informed decisions about your products, promotions and marketing campaigns.

 

DivideBuy already partners with more than 500 retailers and provides interest free credit to more than 300,000 account holders. Speak to a member of our team today to learn how our interest-free credit option could boost your business.

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