Category: Blog

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.

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 

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.

Conclusion

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.

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 groupdentistrynow.com

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)

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.

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

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
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.

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!

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. 

When it comes to evaluating a POS lender for your business, merchants, service providers, and contractors typically focus on two metrics – approval rates and cost.

Pricing is straightforward to assess, but what about approval rates? Are they a reliable metric for comparing financing programs?  

While approval rates are essential, they are only part of the story. If upgrading your point-of-sale financing experience is on your agenda, there are additional factors that you should consider to evaluate finance providers uniformly.  

1.  POS financing approval rates
2.  Approval amount
3.  Loan terms & conditions
4.  Does the financing amount offered meet the sale amount

A summary of each is provided below.

POS Financing Approval Rates 

What does it mean if a point-of-sale finance provider indicates they have an approval rate of 80%? Are they referring to ecommerce applications? Perhaps they are talking about in-person or in-store applications. The consumer finance provider likely has different underwriting strategies for each channel that affect approval rates for that channel. Given this complexity, a better indicator would be approval percentages by consumer fico tier and channel(s) as appropriate.  

Approval Amount

Another important factor when selecting a consumer lending partner is whether their minimum and maximum loan amounts align with your ticket requirement. For example, if your average ticket is less than $300, you are probably focused on BNPL providers. If the average ticket is $3,000, deferred interest options like 0% interest and extended terms will be critical.  

Loan Terms & Promotions

The most popular POS lenders bring extra value to the table beyond just cost, approval rates and approval amounts.  These providers act as a cousultant and advise you about trends and best practices in consumer finance. Consider the added value of a partner that can explain the benefits of a deferred interest program versus equal payments with no interest or why installment loans might be better than revolving lines of credit for your customers.

Financing Offered Meets the Sale Amount

This is one of the most critical, but often overlooked, metrics when choosing the best lending partner for your business.

You need to understand the percentage of the lender loan offers that equals or exceeds the purchase amount requirement. Having a high approval rate is great, but what good is a loan offer that doesn’t allow the consumer to make the purchase?
For example, how helpful is it to offer your customers a $1,500 loan when trying to sell a treadmill for $2,500?

Purchase Conversion Rate

The Purchase Conversion Rate is arguably the most important metric and answers whether a finance program will drive sales.  

The conversion rate is the percentage of offers accepted by the consumer and utilized to make a purchase. Factors that impact conversion rate can include:

• Is the consumer redirected from the merchant website to apply?
• Is there a seamless transition from one program to another if the consumer is declined?
• Are the repayment terms and conditions agreeable?

If the consumer experiences friction anywhere in the purchase process, they are more likely to drop out and abandon the cart.
A seamless customer journey with agreeable terms and conditions is more likely to result in a purchase. 

The Embedded Lending Platform Advantage

One of the major advantages of ChargeAfter’s embedded lending platform is the ability to provide merchants with these analytics and much more. Merchants can view the performance of each lending partner in a single console and on a near real-time basis.  

With this data, merchants are empowered with the tools they need to better evaluate the performance and effectiveness of their lending partners, identify any gaps in consumer coverage, evaluate new promotion offers, and even perform A-B testing with various lenders.  

ChargeAfter operates the largest network of lending partners offering installment loans, private label credit cards, revolving lines of credit, BNPL, subprime lending, lease-to-own, and even B2B financing. A single integration with ChargeAfter provides you with access to all of the programs and tools you need to maximize finance penetration.

 

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.

In today’s fast-paced retail environment, ensuring customers have seamless access to  financing choices is critical to boosting sales and building customer loyalty.  The ability to pay for goods over time through financing can be the deciding factor when completing a purchase. This is especially true during this period of inflation when people are more protective of their resources. Even without inflation, consumer demand for financing is likely to continue as credit cards drop in popularity with younger generations. 

One of the consequences of the rise of demand for consumer financing is that it has become impossible for merchants to create and manage an exceptional financing offer in-house. To manage a robust financing offer, retailers require a technology partner to integrate point-of-sale financing into modern customer journeys. This solution is best provided by a platform that can meet the needs of diverse customer profiles while being fast and easy to use for customers and merchants alike. Implementing the right consumer financing platform has become a strategic must for merchants. 

For leading merchants, ChargeAfter is the platform of choice. Here are seven reasons why.

7 Reasons Why Leading Merchants Choose ChargeAfter 

1. A seamless omnichannel financing experience
2. Expansive Network of Lenders
3. Easy integration and management
4. Unwavering Compliance and Security
5. Higher Approval Rates Equate to Increased Sales
6. Actionable Analytics and Data
7. Customize with White Label Consumer Financing

A Seamless Omnichannel Financing Experience

Your customers expect a seamless, omnichannel purchasing experience, especially for big-ticket items. Some customers start their purchasing journey online before heading to a brick-and-mortar store or interacting with a call center. Your financing offer must be embedded into these omnichannel journeys. Your offer must also be flexible enough to meet your and your customer’s needs and not be tied to rigid experiences, such as in-store stands serving a long line of customers.

ChargeAfter enables this with a state-of-the-art customer-facing application. It makes it easy for you to offer different ways to access financing choices at every point of sale. This can include a QR code in-store or online, sending customers a link to apply, promotional links on your eCommerce site, online pre-approval, and in-store devices – whatever works best for you and your customers.

Expansive Network of Lenders

With over 40 lenders embedded into ChargeAfter’s platform, you can easily offer your customers access to diverse financing products that to cater to every consumer, regardless of their financial standing. As a result, your approval rates are likely to increase to up to 85%. 

Especially during economic fluctuations, having a diverse range of lenders, including B2B financing options, ensures every customer is included. The platform also offers merchants the flexibility to introduce their preferred lenders. Such an expansive network ensures that you remain resilient against individual lender decisions and allows you to capitalize on every sales opportunity.

Easy Integration with Waterfall Finance Methods

The platform stands out with its simplicity. Merchants can enjoy easy integration of this embedded finance platform into their systems. ChargeAfter uses a waterfall finance method that instantly matches customers with the best lending offers suited for their credit profiles. Additionally, its post-sales management features—dispute resolution, refunds, and reconciliations—provide real-time insights. Such embedded financing ensures that merchants and consumers can transact with ease and speed.

Customize with White Label Consumer Financing

ChargeAfter’s white-label POS system allows customization for businesses prioritizing brand identity, reinforcing brand loyalty. Whether you’re seeking a white-label BNPL solution or comprehensive white-label consumer financing, ChargeAfter has you covered.

Unwavering Compliance and Security

Data security, especially in e-commerce financing, is paramount. ChargeAfter’s commitment to both transactional and personal data security is exemplary. Their platform ensures that every piece of data, from credit details to personal identifiers, is guarded against potential breaches. Furthermore, they adhere to all financial regulations, both federal and local. This commitment to embedded finance solutions, combined with unwavering security protocols, ensures merchants can focus on selling, free from the hassle of intricate financial regulations.

Higher Approval Rates Equate to Increased Sales

Through its multi-lender setup, ChargeAfter revolutionizes POS financing. With a broader spectrum of lenders, consumers enjoy a higher likelihood of loan approval, motivating them to finalize their purchases. This embedded lending approach ensures sales and makes your offerings more accessible to a broader audience.

Actionable Analytics and Data

Data-driven insights are crucial for improving customer experiences and optimizing sales strategies. ChargeAfter offers comprehensive analytics, allowing merchants to understand their customers’ buying journeys. Whether it’s identifying drop-off points or successful conversion moments, these insights enable the optimization of the POS lending process.

Case Study: Jerome’s

The success story of Jerome’s Furniture, a legacy brand with over six decades of experience, has been profoundly enriched by its partnership with ChargeAfter. Jerome’s astute integration of ChargeAfter’s consumer financing platform showcased how forward-thinking strategies can lead to exponential growth, even during economic uncertainties. With a commendable 67% increase in customer financing adoption, Jerome’s has ensured its clientele can afford quality furniture without financial strain. This case study underscores the pivotal role consumer financing plays in modern retail, exemplifying how strategic collaborations and a focus on customer-centric solutions can yield impressive outcomes.

Want to delve deeper into Jerome’s Furniture’s remarkable growth journey with ChargeAfter? Download the complete case study and discover the transformative power of consumer financing in the retail sector. Grab your copy now!

In conclusion, as merchants search for an efficient point-of-sale financing platform, ChargeAfter emerges as a frontrunner. Its focus on omnichannel lending and features like white-label BNPL solutions and waterfall financing ensures that merchants and consumers enjoy unparalleled experiences. In the evolving world of consumer finance and in-store financing, having a partner like ChargeAfter can be the game-changer that sets a business apart.

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.