Approximately 40% of the US population has less than perfect credit, with credit scores between 550-700 on the broad FICO scale of 300-850. Although these everyday Americans typically have reliable, full-time incomes, they often fail to meet the requirements of major lenders. Retailers often miss out on sales when major lenders reduce credit for these consumers.
Second-look financing products allow qualified less-than-prime consumers to cover their housing needs more clearly and transparently.
With the right partner, customers who have not been approved for financing by a major lender can get a quick review and a loan extension opportunity from a second-look financing provider, e.g. Fortiva® Retail Credit. Rather than just looking at an applicant’s credit score for approval, Fortiva Retail Credit’s proven underwriting technology platform and sales logic can generate additional approvals for your business. The process takes just seconds and can result in approval for a seamless customer experience for individuals with a low credit score of up to 550.
Why offer second view financing?
Furniture retailers understand the importance of financing and want to extend a certain type of credit to as many customers as possible. Second Look Financing can help your business grow by:
Because not all consumers fit traditional credit formats and a credit score provides an incomplete picture of their financial situation, retailers must rely on alternative sources to provide financing.
Second-look financing solutions allow less-prime consumers to be evaluated for alternative financing options if their primary lender doesn’t approve them. This payment option features longer terms and lower payments than other loan options.
Providing the ability to spread payments to users over time increases ticket volume. This is especially true for those who fall below the cutoff for major lenders. It has less payment options than the main user; So the increase in financing options is huge for furniture and mattress retailers.
Second-look financing offers the possibility of an inventory transfer. Customers who finance their purchases provide valuable information and purchasing habits, allowing you to provide more targeted marketing communications and recommendations on sales, promotions and events.
Strengthening customer loyalty
Customers who get a loan through you develop a greater sense of loyalty when they are denied elsewhere. You can adopt stronger credit limits, increase purchasing power, and reduce spending. Giving customers payment options gives them more control over their money and budget. Your trust translates into customer loyalty and a competitive edge for your business. By making one sale, you can open your business up to years of future sales.
Second look financing is a win-win.
With more Americans relying on credit and financial flexibility, your ability to extend credit is more important than ever to growth. Second Look Financing allows you to offer alternative financing that serves less than prime consumers with no down payment, low monthly payments and reasonable total ownership costs. Since it’s open credit, it can benefit you on return trips and sales after the account is opened.
With over 25 years of experience, Fortiva Retail Credit is the leading second-look consumer credit program. We are committed to supporting the financial needs of consumers with subprime loans.
The experience of Fortiva’s retail lending business partners:
- 30% increase in average ticket price
- 35% increase approvals
- 30% growth on repeat transactions
contact us Learn how Fortiva’s Retail Credit financing solution can help you approve and retain more customers.