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One of the most effective ways to offer retail finance to your customers is through panel lending.
If you’ve never heard of it, don’t worry – we’ll break it down for you and show how it could help boost your sales, while keeping your customers happy.
What is Panel Lending?
Panel lending lets you integrate multiple retail finance providers into your checkout experience. Instead of being tied to a single lender, you can give your customers the freedom to choose from a “panel” of lending options.
This means your shoppers can pick the payment plan or financing provider that works best for them, whether it’s interest free instalments, buy now pay later, or traditional credit.
Here’s a quick example: imagine a customer is about to check out on your site. Instead of just one finance option, they see several tailored to their preferences. That’s panel lending in action – simple, flexible, and designed to maximise conversions.
How does Panel Lending work in eCommerce?
Adding panel lending to your store is easier than you might think.
1. Choose a lending integration partner
Start by partnering with a payment gateway or technology provider that supports panel lending.
2. Set up the panel
Your partner may connect you with a range of lenders that align with your business needs and customer base. Alternatively you can select them yourself.
3. eCommerce integration
Depending on the provider, this should integrate seamlessly into your checkout process, typically with just a few lines of code or a plugin.
4. Real-time offers
When a customer checks out, the system automatically displays financing offers from the panel of your chosen lenders. Customers pick the option that suits them, and the lender handles the rest.
Benefits of Panel Lending for your business
Here’s why panel lending could be a game-changer for you:
Higher conversion rates:
Offering multiple financing options reduces the chance of cart abandonment. If one lender doesn’t approve a customer, another might!
Broader customer appeal:
Not every customer’s needs are the same. Some might prefer interest free options, while others want longer-term plans. With panel lending, you can cater to all preferences.
Easy implementation:
Thanks to modern eCommerce platforms, setting up panel lending is straightforward, saving you time and resources.
Things to keep in mind
While panel lending offers plenty of benefits, it’s not a one-size-fits-all solution. Too many options can sometimes overwhelm customers. Make sure your panel lending setup feels streamlined and user-friendly.
Some lenders may charge higher transaction fees or impose certain terms. Review the details carefully to ensure it aligns with your margins. Also, if one or more of the lenders on your panel offer regulated credit, you’ll need to adhere to finance regulations when offering lending options.
Is Panel lending right for you?
If your customers are asking for more flexible ways to pay or if you’re seeing abandoned carts due to payment limitations, panel lending could be worth exploring. It’s an easy way to offer variety and flexibility, all while improving your bottom line.
To find out more about retail finance and explore the best, most practical and efficient lending option for your business, get in touch with our experts today.
