How to Use POS Financing to Win Over Interest-Weary Shoppers

Leading retailers recognize the strategic importance of point-of-sale (POS) financing to attract interest-weary shoppers, especially during this period of uncertain economic conditions. When implemented correctly, POS financing becomes an essential tool to boost conversion and customer satisfaction. 

In May, the Federal Reserve reported that consumers are preparing for continued inflation, yet they remain undeterred from shopping. The April Survey of Consumer Expectations shows that spending is projected to grow by 5.2% over the next year. This underscores the importance of providing flexible and appealing financing options at the point of sale.

The Strategic Importance of POS Financing

A well-executed POS financing offer meets the customer at their moment of need, offering a fast and seamless experience. ChargeAfter data shows that merchants who adopt a multi-lender waterfall financing model with solutions for prime, near-prime, and subprime shoppers, can achieve up to 85% approval rates. This model ensures that a wide range of customers can access financing options that suit their credit profiles, expanding the potential customer base and increasing conversion rates.

Moreover, recent data gathered by ChargeAfter reveals that only 2% of retailers achieve at least 80% approval rates, highlighting the competitive advantage of implementing a robust POS financing strategy.

Multi-Lender Waterfall Model: A Path to Higher Approval Rates

To effectively meet the needs of their entire customer base, retailers must integrate multiple lenders covering the full credit spectrum into the points of sale. This multi-lender approach provides personalization and choice through various financing products such as private label credit cards (PLCC), revolving credit, installments, lease-to-own, buy now, pay later (BNPL), and B2B financing.

However, merely offering access to multiple lenders is insufficient. A well-executed POS financing offer must meet customers at their moment of need, whether they are shopping in-store, online, through call centers, or even in-home. It should provide a fast and seamless experience in real-time and deliver choice and personalization.

Integrate Multiple Lenders with an Embedded Lending Platform

To seamlessly integrate multiple lenders into omnichannel points of sale with a single application, an embedded lending platform is essential.  As well as delivering customers with instant access to the best-fit financing options, it provides numerous benefits for retailers. These benefits include fast and easy integration, comprehensive post-sale management, lender redundancy, visibility and control, and financing data in a single integrated solution. ChargeAfter is the platform of choice for America’s top retailers. In a single technical integration, ChargeAfter not only makes it easy to unlock a network of lenders but also removes the burden of managing multiple lenders, including taking care of sensitive PII, terms and conditions, disclosures, etc. 

Effective Marketing Strategies to Promote Financing Options

Of course, retailers need to communicate to buyers that financing is available within the shopping journey. One way to do this is through marketing campaigns. Another effective way is to communicate with shoppers throughout their purchasing journey. For example, retailers can add promotional widgets on their eCommerce websites, embed financing into the checkout process, and invite customers to apply for pre-qualification, which can also be used in-store. In-store signage with QR codes enables customers to apply for financing on their mobile devices, facilitating purchasing decisions.

Signage regarding POS financing availability at self-checkout and traditional checkout ensures shoppers can confidently continue their journey, knowing that POS financing can help them buy the desired goods. In the context of persistent inflation and evolving consumer spending habits, retailers must adopt diverse financing options to attract and retain customers.

The Competitive Advantage of Embracing Innovative POS Financing Solutions

Retailers who embrace innovative POS financing solutions will be well-positioned to drive sales, boost customer satisfaction, and maintain a competitive edge in the market. By adopting a multi-lender waterfall model through a platform, retailers can offer a seamless and personalized financing experience that meets the diverse needs of their customers. Effective marketing strategies further enhance the visibility and appeal of these financing options, ensuring that customers are well-informed and confident in their purchasing decisions. ChargeAfter is the platform of choice for America’s top retailers.

Mark Denman_EVP Merchant Sales & Success

Mark Denman

EVP Merchant Sales & Success

About Mark Denman

Mark has worked in the near-prime and tertiary lending space for 30 years. As EVP of Merchants Sales & Success at ChargeAfter, he is responsible for ensuring merchants and lenders get the best care possible.

5 Key Factors to Select a Consumer Financing Platform in 2024

As consumer demand for financing at the point of sale continues to grow, leading merchants prioritize meeting this demand. To achieve this, they are moving away from a single lender model towards a platform-first approach to provide their customers with access to multiple lending options through a seamless and flexible purchasing experience. 

Choosing the right point-of-sale (POS) financing platform is essential as it goes beyond simply processing transactions to play a pivotal role in shaping the customer journey. Offering multiple financing choices empowers customers with financial flexibility and enhances their purchasing power, especially for high-ticket items that might otherwise be out of reach. Consequently, your POS financing platform is a strategic tool to increase approval rates and generate higher sales, while fostering customer loyalty. 

POS financing: A snapshot of 2023

POS financing trends in 2023 confirm that embedded lending at the point of sale is here to stay. The 2023 holiday season, the busiest time of year for purchasing, saw a 14% increase in payments using BNPL (Buy Now, Pay Later) compared to the previous year, according to Adobe Analytics data. This trend is backed up by research conducted by Citi Retail Services that showed that 90% of customers want merchants to offer a choice of payment options at the point of sale. 

This shift in consumer behavior underscores why the right POS financing platform is crucial for merchants aiming to thrive in today’s competitive landscape.

5 crucial factors when choosing the best POS financing platform

  1. Omnichannel experience
  2. A broad network of lenders
  3. Easy integration and management
  4. Comprehensive analytics and data 
  5. White-label capabilities

1. Omnichannel experience

Customers are becoming accustomed to increasingly seamless and personalized shopping experiences. An omnichannel lending approach that covers in-store financing and eCommerce financing allows customers to access financing solutions wherever they interact with your brand.  Your platform should be embedded at every point of sale be it in-store, online, via a call center, door-to-door, or any other checkout to provide a seamless omnichannel experience.

2. A broad network of lenders

The ideal POS financing platform includes a broad network of lenders. This way your financing offer can cover the entire credit spectrum, and diverse financing products, serving B2B and B2C customers and different geographies. A lending network positions you to meet the financing needs of all of your customers, and support them as their needs change. 

The more comprehensive your lender network, the more you are safeguarded against changes made by single lenders. A lender adjusting their credit box, merchant discount rates, or even ceasing operations can leave you and your customers without an alternative. It also puts you in a stronger position to negotiate terms with lenders who are vying for your customer’s business.

3. Easy integration and management

Integrating a POS platform into every point of sale should be fast and seamless with in-store, eCommerce, in-clinic, in-home, and call center capabilities. Look for a platform that enables quick integration into all major eCommerce platforms, API and SDK kits to personalize and build the online checkout experience, and flexible in-store options.

For example, in-store financing can involve scanning a QR code, using an in-store device at checkout, self-checkout, or sending a customer a link to their device. For e-commerce financing, a platform should be able to support pre-approval applications that can be combined with an in-store visit. By accommodating customers wherever they make their purchases, you make it easier for them to complete their transactions.

For merchants, an embedded lending platform should offer effective post-sales management, including dispute resolution, refunds, and reconciliations. Real-time updates on performance, volume, and order information are essential to optimize lending programs. Direct communication with lenders and tools to track, process, and resolve cases should be standard features of your chosen platform.

4. Comprehensive analytics and data

A superior embedded lending platform will provide actionable analytics and data. A complete view of lending data makes optimizing financing offerings and adapting to shifting market trends possible. With this data at your fingertips, you can plan marketing and retargeting campaigns that build strong customer relationships, enhancing their lifetime and average order value. 

Analytics from your platform should also help you to understand and optimize your customers’ journey, showing you where and when customers drop out and where and when they convert, so that you can easily optimize your lending program within your customers’ journeys and improve your eCommerce website performance. 

5. White label capabilities

A white-label POS system allows you to customize the platform to match your brand identity, increasing customer recognition and loyalty, ensuring a seamless and integrated brand experience across all customer touchpoints.


Choosing a POS financing platform can be complex, given the broad range of features to consider and the multitude of providers in the market. However, by keeping these five critical factors in mind—omnichannel experience, vast lender network, easy integration and management, comprehensive financing analytics, and white-label capabilities—you’re well on your way to selecting a platform that meets your business needs and enhances your customers’ shopping experience.

About Mark Denman
Mark has worked in the near-prime and tertiary lending space for 30 years. As EVP of Merchants Sales & Success at ChargeAfter, he ensures merchants and lenders are smoothly connected, cultivating exceptional experiences and revenue growth.

6 POS Financing Solutions for Your Point of Sale

In recent years, POS financing has emerged as a game changer, enabling merchants to meet the demand for flexible financing solutions embedded within the purchasing journey. This growing demand is a result of multiple factors, including the emergence of new fintech lenders that have entered the market with competitive terms, a challenging economy for consumers, and younger Americans rejecting credit cards.  

This next wave of credit not only enhances consumers’ purchasing power but also opens new strategic avenues for merchants to increase sales and foster customer loyalty. With various POS financing solutions available, understanding and integrating suitable options can significantly impact your sales strategy.

pos financing in embedded lending. credit cards vs single lender pos financing vs embedded lending network

What is POS financing?

POS financing, or point-of-sale financing, refers to lending options available to customers at their moment of need in the purchasing process. Unlike traditional financing, which often involves lengthy application processes and extensive paperwork, POS lending offers instant loan approvals directly at checkout, bridging the gap between customer desire and purchase capability.

Types of POS Financing

The landscape of POS financing is diverse, offering several tailored options to meet the varied needs of businesses and consumers. POS financing covers different types of lending products that cover the full credit spectrum. Merchants that want to provide their customers with a robust POS financing experience embed different types of financing options into their points of sale to increase approval rates to up to 85%.

0% APR Financing

0% APR programs allow customers to make purchases without incurring any interest during a specified period making them an appealing financing option.  Consumers can buy a product immediately and pay back the cost over time, but unlike traditional loans, they are not charged any interest, provided the repayment is completed within the agreed timeframe. This type of financing is particularly beneficial for purchasing big ticket items, as it makes them more financially accessible and manageable for the consumer. Retailers often use 0% APR offers as an incentive to encourage higher sales and attract budget-conscious customers, enhancing both the affordability of their products and the attractiveness of their sales proposition. By offering a cost-effective way to spread out payments, 0% APR loans at the point of sale can significantly improve the purchasing power of consumers, while simultaneously driving business growth and customer loyalty.

Consumer BNPL (Buy Now, Pay Later)

Buy Now, Pay Later (BNPL) is a flexible payment solution that has revolutionized the retail industry in recent years. BNPL allows consumers to divide the total purchase price into smaller, more manageable installments, often with the initial payment due at the time of purchase and the rest spread over a short period. The key appeal of BNPL lies in its accessibility and convenience: customers can acquire goods immediately, from everyday items to more substantial purchases, without the upfront financial burden. This method is especially attractive for those who need or want products immediately but prefer not to exhaust their savings or use traditional credit options. For retailers, offering BNPL can significantly boost sales, attract a broader customer base, and improve customer satisfaction by providing a flexible and customer-friendly payment alternative. By aligning with modern spending habits and offering immediate gratification with delayed payment, BNPL is a powerful tool for enhancing both consumer purchasing power and business growth.

Business BNPL

B2B financing, tailored specifically for business-to-business transactions, plays a crucial role in smoothing the financial interactions between companies. This form of financing addresses the unique needs of businesses, offering them more flexible payment terms and credit options for purchasing goods or services. B2B financing often involves larger purchases and  repayment periods ranging from 30 days to 12 months or more. It is designed to enhance cash flow management for both buyers and sellers, enabling businesses to maintain operational efficiency without the immediate financial strain of large purchases. This can be particularly beneficial for smaller businesses that may not have extensive capital reserves. By facilitating easier and more manageable trade, B2B financing strengthens business relationships, fosters long-term collaboration, and supports the overall growth and stability of the business ecosystem. For companies looking to invest in equipment, inventory, or services to expand their operations, B2B financing offers a vital resource to achieve these goals without disrupting their financial health.


Lease-to-own is an innovative payment solution that blends elements of leasing and purchasing, offering consumers and businesses a flexible pathway to ownership. This option allows customers to lease a product—often electronics, furniture, or appliances—for a set period, with the opportunity to purchase the item at the end of the lease term. During the leasing period, customers make regular payments, similar to a rental agreement, but with the added advantage of having the option to own the product outright eventually. This arrangement is particularly appealing for those who need immediate use of an item but may not have the funds for a full purchase upfront or are uncertain about committing to a direct purchase. It’s also beneficial for products that rapidly evolve or depreciate, like technology gadgets, where consumers might prefer to test or use the product before deciding on a full investment. For retailers, offering lease-to-own options can attract a wider range of customers, including those who are credit challenged, and can lead to increased sales, customer loyalty, and market reach. This purchasing method not only enhances accessibility to products but also provides consumers with the financial flexibility to manage their budgets effectively while enjoying the benefits of the leased items.

Installment loans

Installment loans offer a robust financing solution for consumers and businesses making big-ticket purchases, allowing them to spread the cost over an extended period. This type of loan is particularly suited for high-value one-time purchases such as fitness equipment, elective medical procedures and home improvement projects, where paying the full price upfront can be financially daunting. With long-term installment loans, the total cost is divided into smaller, manageable payments, typically made monthly. This approach not only makes expensive purchases more accessible but also helps in budgeting and financial planning, as repayments are predictable and spread out over time. The extended duration of these loans, which can range from 6 months to  several years, reduces the monthly financial burden on the borrower, making it easier to manage alongside other financial commitments. For retailers, practitioners and contractors, offering long-term installment loans can broaden their customer base to include those who prefer or require a more extended repayment plan. It’s an effective strategy to increase sales of higher-priced items while also building customer trust and loyalty, as it demonstrates a commitment to providing flexible financial solutions. By accommodating the diverse financial situations of customers, installment loans play a pivotal role in making significant investments more attainable and financially sustainable.

Revolving line of credit

Revolving lines of credit (revolving credit) offer a dynamic and flexible financing option, particularly useful for consumers and businesses seeking repeat purchases. Unlike traditional loans with a fixed amount and a set repayment schedule, a revolving line of credit provides a predetermined credit limit that customers can draw from, repay, and reuse as needed. This flexibility is key: it allows users to borrow exactly what they need, when they need it, up to the limit of the credit line. Interest is typically charged only on the amount borrowed, not on the entire credit limit, making it a cost-effective option for managing fluctuating financial needs.

Retailers and service providers offering a revolving line of credit can enhance customer loyalty by providing a reliable, reusable financial resource. This not only improves the customer experience by offering financial flexibility but also encourages repeat transactions, as the ease of access to credit can facilitate ongoing purchasing decisions. By aligning with the financial needs and preferences of customers, revolving lines of credit represent a versatile and strategic approach to consumer and business financing.

Choosing the right POS financing option

When selecting the right type of POS financing for your customers, it’s crucial to consider their specific needs, purchasing behaviors, and the nature of your products or services. Start by analyzing your customer base: Are they typically making large, one-time purchases, or do they prefer smaller, recurring transactions? Understanding this dynamic helps in choosing between options like BNPL for immediate, smaller purchases or long-term installment loans for big ticket items. Additionally, consider the speed and convenience of the application process, as this can greatly influence customer satisfaction. For businesses, B2B financing might be more appropriate, while consumers might prefer the flexibility of lease-to-own options for certain goods. The key to a successful POS financing strategy lies in offering a range of options to cater to diverse customer needs. 

Adopting a platform-first approach is highly effective in this context. By integrating a POS lending platform, you can embed multiple financing options into your point of sale. This not only provides customers with a variety of choices but also streamlines the financing process, making it more efficient and user-friendly. Such a system allows for a seamless combination of different financing methods, such as revolving credit lines for larger purchases and BNPL for smaller purchases, ensuring that each customer finds a solution that best fits their financial situation. Ultimately, a platform-first approach offers the flexibility and adaptability needed to meet the evolving demands of both your business and your customers, leading to enhanced customer satisfaction and potentially higher sales volumes.

Future of POS financing

The future of POS financing is to empower the consumer to make purchases at the point of decision, whenever and wherever that might occur.. The increasing shift towards omnichannel, digital, and mobile platforms, will likely lead to more integrated and user-friendly POS financing options within online and in-person and even combined shopping experiences. Additionally, there’s a potential for diversification in financing options, such as the incorporation of flexible payment plans tailored to individual consumer needs or the introduction of new financing models that could include more peer-to-peer elements or blockchain technology.

Another important trend is the growing consumer demand for transparency and simplicity in financing. This could lead to more straightforward, easy-to-understand financing options with clear terms and conditions, catering to a market that values financial clarity. Furthermore, the rising emphasis on financial inclusivity might drive the expansion of POS financing to cover a broader range of products and services, making it accessible to a wider segment of the population.

Finally, regulatory changes and an increased focus on consumer protection could shape the future of POS financing, potentially leading to more standardized practices across the industry. These changes will not only enhance the customer experience but also provide businesses with new opportunities to innovate in their sales and financing strategies, ensuring that POS financing remains a vital component in the evolving landscape of consumer purchasing.


In conclusion, POS financing has evolved to a multiple-lender model, employing the concept of waterfall financing within an embedded lending platform. This innovative approach will revolutionize the way businesses and consumers interact with financing options. By integrating a variety of lenders into a single, seamless platform, merchants can offer a more diverse range of financing solutions, ensuring that there’s a fit for every customer’s unique financial situation. The waterfall financing aspect further enhances this model, as it systematically routes customer applications through different lenders based on predefined criteria, thereby increasing approval rates and providing customers with the best possible financing terms. This embedded lending platform not only simplifies the financing process for customers but also for merchants who benefit from a single platform for all their POS financing management. Looking ahead, the adoption of a comprehensive, customer-centric approach in POS financing will be a key driver in the evolution of consumer purchasing experiences, marking a leap forward in the intersection of finance and retail.

About Kevin Lawrence
VP Global Lender Relations

Kevin has worked in the banking and finance industry for over a decade. He has worked closely with some of North America’s largest banks, financial institutions, and retailers. Kevin is an expert in embedded consumer financing and B2B financing and has a deep understanding of current trends and where the industry is heading.

Boost Your Dental Financing with an Embedded Lending Platform

Offering patients a seamless path to dental financing choices is a strategic must for dental providers in 2024. More patients than ever before are exploring financing options as demand for elective treatments rises. To meet this demand, dental providers must offer diverse financing solutions that cater to a broad spectrum of patient needs. With an embedded lending platform, you can easily provide your patients with seamless access to multiple lenders to offer the best dental financing for patients.

An embedding lending platform simplifies the financing process, enabling dental practices to offer multiple financing options. The platform integrates directly into a dental service’s existing systems, allowing patients to apply for dental financing options without leaving the dentist’s office, website, or call center. In doing so, dental providers can enhance customer loyalty by ensuring a favorable financing experience with approval rates of up to 85% for their patients.

Navigating dental financing: opportunities and pitfalls

Lenders categorize borrowers based on their credit scores. ‘Prime’ are those with excellent credit, ‘near-prime’ those with good but not perfect credit, and ‘subprime’ those with poor credit histories. To meet the needs of patients across this spectrum of credit, dental providers must incorporate multiple lenders into their financing offerings. This is a process fraught with challenges if handled independently, as:

  1. Lender integrations are complex, time-consuming, and require significant resources.
  2. Day-to-day management of each lender is complex and time-consuming. 
  3. Dependency on single lenders becomes risky if terms change or if a financing provider ceases operations.
  4. Patients may need to complete several applications before being approved, each with its own distinct set of requirements.
  5. Staff must navigate and understand the systems of multiple lenders, each with its own processes.

The only way to counter such challenges is through a platform-first approach to point-of-sale financing. This will free dental practices up to focus on their core operations and patient care while providing an exceptional dental financing experience for their patients with higher approval rates and better conversion. 

Enhance dental financing with platform-first approach

Streamlining access to personalized financing solutions is a game changer. By providing patients with a flexible and choice-driven financing experience, dental practices can dramatically enhance the patients’ purchasing experience and deliver high approval rates. As a result, dental practices observe a notable rise in the average transaction value, leading to an overall boost in sales, stronger patient relationships, and a competitive edge in the healthcare marketplace. An embedded lending platform:

  1. Facilitates a seamless connection between dental practices, multiple lenders, and patients covering the entire credit spectrum on a single platform.
  2. Simplifies the application process and enhances the patient’s experience wherever they are receiving service: in-clinic, through a call center, or online. 
  3. Results in high approval rates of up to 85% that in turn boost conversions.
  4. Manages all financing activities efficiently, from a single application to instant approvals to post-sale management including disputes, reconciliations, and customized reporting.
  5. Provides data and analytics to optimize the financing offer and create personalized relationships with patients.

Integrating an embedded lending platform into the patient care journey is the most effective way to meet these needs, providing a seamless financing experience for patients and clinics. Dental practices that integrate an embedded lending platform significantly improve the patient experience. Patients enjoy quicker service, with immediate access to a range of dental financing options tailored to their individual needs and financial situations, all without the need for multiple applications. This hassle-free approach to dental financing helps patients feel more at ease and valued, fostering a sense of loyalty and satisfaction with their dental care provider.

Why ChargeAfter is the platform of choice for dental practices

ChargeAfter’s embedded lending platform enables dental practices to seamlessly integrate financing into the patient journey, whether online, in clinics, or via call centers. The platform connects dental practices with a network of lenders that cater to a full range of patient credit profiles. Lenders on the platform offer a diverse range of financing products, including installment plans and revolving credit, to cater to various patient needs and preferences.

By simply filling out a quick application, patients are matched with the best financing options through a waterfall financing approach, where if a patient isn’t approved by the first lender due to their credit score, their application automatically ‘falls’ to the next lender in line until the best match is found. This process ensures that patients receive tailored dental financing solutions within seconds based on their individual credit needs and preferences. It is easy for dental practices to manage, supporting the entire financing process in a single platform enabling quick and easy refunds, reconciliations, dispute management, reporting, and lender optimization. 

In 2024, personalizing patient financing will become not just an option but a necessity for dental practices aiming to distinguish themselves in a competitive landscape. As we navigate through a year of innovation and patient-centered care, offering tailored dental financing solutions will emerge as a key strategy to make patients smile wider than ever before.

References: Article in

Visit us at Payments MAGnified 2024: Hyatt Regency Dallas TX

Payments MAGnified 2024 by Merchant Advisory Groups (MAG) will take place from 20 Feb to 23 Feb 2024 at the Hyatt Regency Dallas. TX (USA)

Payments MAGnified at the Hyatt Regency Dallas - ChargeAfter

If you are prioritizing enhancing your POS financing in 2024 and are heading to Payments MAGnified on February 21nd & 22nd – we would love to meet!

As the industry-leading embedded lending platform for point-of-sale financing, we can help you simplify the financing journey for you and your customers. Our easy-to-use platform and network of lenders deliver up to 85% approval rates making for happier customers and more sales.

Come and meet the team to learn how ChargeAfter can help you unlock the full potential of POS financing. You can find us at Booth 216 or schedule a meeting.

Payments MAGnified 2024 will delve deeper into the technology of payments, connecting merchant IT professionals and their business partners with technology sponsors through technology-focused educational sessions and engaging networking events. The MAG Tech Forum, aligned with the bi-annual MAG conference, is designed explicitly for payment IT professionals. It provides education and networking opportunities focused on innovative uses of new relevant payment technologies.

This event for professionals and businesses in the financial payments industry, offers networking opportunities and customizable experiences catered to business- and tech-minded individuals. Payments MAGnified is dedicated to exploring the depths of industry challenges and opportunities, focusing on new advances in payment technologies, consumer financing, and embedded financing, and other topics.

3 Benefits of Integrating Waterfall Financing

waterfall financing for consumer lending

In 2024, sales channel strategies need to be diverse and optimized to suit the purchasing behaviors of the modern shopper. In this article, we explore sales channel strategies in more detail and share 3 benefits of a sales channel strategy that integrates waterfall consumer financing. 

What is waterfall financing?

Waterfall financing, from a consumer financing perspective, is a method of consumer lending at the point of sale whereby a shopper loan or credit application passes through a series of lender tiers prioritized for receiving the best loan interest and terms to lower-tiered lenders offering the next best loan offer.

Here’s how it typically works:

  1. First Tier Criteria: Initially, an application is evaluated against the strictest criteria. These criteria include a high credit score, low debt-to-income ratio, or other financial stability and creditworthiness indicators. Most applicants who meet these criteria are considered low-risk borrowers.
  2. Subsequent Tiers: Applications not meeting the first tier’s stringent requirements are passed down to the next tier. Each successive tier has slightly more relaxed standards than the one before it. For instance, the second tier might accept lower credit scores or higher debt-to-income ratios.
  3. Approval or Decline: This process continues until either the application is approved under one of the tiers’ criteria or fails to meet all tiers’ standards and is ultimately declined.

What is a sales channel strategy?

A sales channel strategy refers to the marketing tactics used across several sales channels. In the modern eCommerce landscape, a single sales channel is simply not enough. Online stores should utilize a variety of channels, from social media platforms to Google Shopping and beyond, to attract new customers and retain existing shoppers. A sales channel strategy considers how best to engage consumers through online marketplaces, modern marketplaces, wholesale selling, retail selling, and paid advertising. Using a combination of platforms within these avenues will lead to greater sales channel success. 

Waterfall financing from ChargeAfter will also support your sales channel strategy by empowering your customers’ purchases. By partnering with ChargeAfter, you can offer your customers access to a wide network of lenders capable of facilitating their shopping needs across your entire sales channel strategy. Let’s take a closer look at the benefits of a sales channel strategy that integrates waterfall consumer financing. 

Benefits of waterfall financing

Benefits for shoppers

Waterfall financing makes shopping more accessible than ever. Merchants that use waterfall financing give their shoppers access to lenders who can finance their shopping decisions. Customers can receive this financing without having to undergo credit checks, making consumer financing a feasible choice for shoppers unwilling to turn to their financial institution for support. This, coupled with favorable repayment plans makes for an efficient shopping experience that appeals to new and existing customers. 

  1. Increased access to credit: Waterfall financing allows individuals who might not meet the strictest lending criteria to access credit still. This benefits those with lower credit scores or less conventional credit histories.
  2. Opportunities to build or repair credit: For borrowers looking to build or repair their credit, gaining access to credit through less stringent tiers can provide this opportunity as long as they manage their debt responsibly.
  3. Tailored financial products: Since waterfall financing involves different tiers with varying criteria, consumers might find products more tailored to their financial situation rather than a one-size-fits-all approach.

Benefits for lenders

  1. Market expansion: This approach allows lenders to serve a broader range of customers. They can cater to prime borrowers in the upper tiers while offering products to near-prime or subprime borrowers in lower tiers, thus expanding their market reach.
  2. Improved loan performance: Using more detailed criteria to assess borrowers, lenders can better predict loan performance and reduce default rates. Each tier can be optimized based on the risk profile and past performance of borrowers in that category.
  3. Flexibility and responsiveness: Waterfall financing provides a framework for lenders to quickly adjust their lending criteria in response to changing market conditions, regulatory environments, or shifts in their risk appetite.
  4. Data-driven decisions: This approach often relies on comprehensive data analysis, allowing lenders to make more informed and precise decisions based on various variables beyond just credit scores.

Industry benefits:

  1. Financial inclusion: By providing credit opportunities to those whom traditional criteria might exclude, waterfall financing contributes to financial inclusion efforts.
  2. Innovation in lending: This approach encourages innovation in the lending industry as lenders develop more sophisticated models to assess borrower risk across different tiers.

In summary, waterfall financing offers a more nuanced and flexible approach to lending that can benefit a wide range of consumers, especially those who might be underserved by traditional models, while also allowing lenders to manage risk and expand their customer base.

Originally published: 12 Jan 2022
Updated: 24 Jan 2024

How Banks Diversify Lending with ChargeAfter’s Lending Hub

As consumer behavior rapidly shifts toward more flexible and varied POS financing options, banks recognize that they need to expand beyond their traditional lending models and diversify their lending products and offers. Partnering with a fintech technology provider like ChargeAfter’s Lending Hub is pivotal for banks to succeed.

The Lending Hub offers a comprehensive all-inclusive embedded lending platform for banks to create, manage, and distribute a wide range of POS financing products – from consumer finance with revolving lines of credit, short and long-term installments, BNPL, and personal lending. By adopting such diversified offerings, banks can cater to the nuanced and evolving needs of modern consumers, enhancing customer satisfaction and loyalty.

Challenges addressed by ChargeAfters’ Lending Hub

One of the significant challenges faced by banks is the complexity of merchant onboarding and integration. ChargeAfter’s Lending Hub simplifies this process through its robust enablement tools and streamlined merchant onboarding protocols, reducing operational costs and time and increasing merchant satisfaction. This approach not only accelerates market entry but also establishes a stronger network of merchant partnerships, essential in today’s competitive environment.

The Lending Hub also addresses crucial aspects like the protection of Personally Identifiable Information (PII). In an era where data security is paramount, ChargeAfter ensures compliance with the highest standards of data protection, giving both banks and their customers peace of mind.

As shopping behaviors evolve, banks need to adapt to the natural evolution of shopper needs. ChargeAfter’s Lending Hub enables banks to stay ahead of the curve, offering tailored POS financing solutions that resonate with contemporary consumer demands. This adaptability ensures that banks remain relevant and competitive.

The technological backbone of ChargeAfter’s Lending Hub aligns perfectly with the banking core architecture. By leveraging cloud-based hosting and microservices, the platform ensures scalability, security, and operational efficiency. This infrastructure supports an agile development process, allowing for rapid deployment and continuous improvement of financial products. This agility is vital in a financial world that demands quick adaptation to market changes and consumer trends.

Partnering with ChargeAfter’s Lending Hub is not just about offering a range of financial products; it’s about embracing a holistic, future-forward approach to banking. It’s about meeting the needs of today’s consumers with innovative solutions and cutting-edge technology. As banks look towards a new era of digital finance, ChargeAfter stands as a valuable ally in navigating this journey together.

Jeffrey Tower ChargeAfter EVP Global Business Development

Jeffrey Tower
EVP Global Business Development
Jeff has over 20 years of experience driving revenue through building global brand awareness, business development, marketing, and sales departments focused on consumer financing, fintech, and eCommerce.

ChargeAfter Wins “Best Banking Services Provider” in Furniture Today Reader Rankings

We are delighted to share that ChargeAfter has received the award for “Best Banking Services Provider” in Furniture Today’s 2023 Reader Rankings. Additionally, we were named a  “Best Consumer Finance Company” finalist. 

The Furniture Today Reader Ranking awards are a celebration of excellence within the furniture industry. They hold special significance as readers nominate and vote for each award. The recognition underscores the value we bring to merchants by helping them seamlessly provide personalized financing choices to their customers at every point of sale. This acknowledgment reflects the appreciation of those within the furniture industry who understand the impact of our embedded lending platform in boosting approval rates, building brand loyalty, and increasing sales conversion. We want to say a big thank you to everyone who voted for us!

Furniture Today Winner Badges_Best Banking Services Provider -2023

It is also significant that our fellow finalists and winners of these two awards are our lending partners, confirming what we already know – that we are working with the best of the best! Congratulations to Wells Fargo, Synchrony, and Koalafi and the winners and finalists in every category.