Multi Lenders in Point of Sale Financing

The world of consumer point of sale financing has a distinct split between single lenders and multi-lenders. To the consumer, this distinction is almost impossible to spot. For retailers, it makes a big difference. Single vs. multi-lender platforms can have a huge impact on who gets approved for financing or not, and what terms are available, and what sales look like.


Multi-lender platforms use a network of lenders and waterfall financing partners funneled through a single-user checkout experience. Customer data isn’t only processed against a set of uniform terms targeted at prime applicants. Instead, it’s put through a “waterfall”  of diverse lenders in the platform to find the best financing or credit product for the consumer with the highest approval and take rates.

The waterfall method is simple. Once submitted, a point of sale waterfall financing application is checked against the prime lenders for approval, and if declined it moves down to near-prime or “2nd look” options for approval. If declined, the application is then shared with the sub-prime lenders (“lease to own”) for approval. The entire process takes place on the merchant’s website without any redirects and takes only seconds.

Because multiple lenders are checked in the waterfall, various rates and terms are available to shoppers once approved allowing the consumer to pick the best-personalized offer for them at checkout.

ChargeAfter provides up to 85% approval rates for applicants by enabling merchants to offer more financing options and allowing shoppers to receive and select the right option for them!

The effect on eCommerce

Denying shoppers access to financing can have disastrous results for abandoned carts, conversions, and even customer loyalty. Conversely, giving borrowers more financing options with flexible repayment terms can encourage confidence and result in higher average order values (AOV) at checkout!

More people are shopping online than ever before. Big-ticket items are more available, too. As a result, it’s in the best interest of the online retailer to bring their customers diverse financing options to meet all credit types. Choosing a multi-lender platform means casting a broader net for interested shoppers and bringing in more sales. You’ll also turn away fewer potential borrowers with the ability to make good on their financing. 

In an age where it’s easier to buy an armchair online than going to a physical furniture store, eCommerce stores need the diversity of multi-lenders of waterfall finance to have to offer. Not everyone has pristine credit, but that shouldn’t disqualify the 70%~ of shoppers seeking consumer loans.

Offer your consumers point of sale financing at checkout!