The world of retail finance options is continuously growing and is no longer just a value-added service, but a strategic necessity. As a retail finance lender specialising in the second-line model, we understand the critical role that accessible finance solutions play in both customer satisfaction and business growth. This blog is going to explore the benefits of inclusive finance options and the unique advantages of the second-line lending model.
Expanding Customer Access with Second-Line Financing
The second-line retail financing model has been a pivotal evolution in customer financing. Traditionally, customers who were declined by a primary lender had limited options to proceed with their purchases. However, second-line financing, where services like ours come in after a primary lender, offers a second chance for customers to access financing. This model significantly broadens the spectrum of customers who can benefit from financing, ensuring that a declined application isn’t always the end of the road.
The main benefits of inclusive BNPL options for Businesses
For businesses, the integration of a Buy Now Pay Later platform is transformative. By partnering with finance provider that prioritises inclusivity, businesses can:
- Improve Acceptance Rates: With second-line financing, businesses can capture a larger segment of customers, and can see up to 30% in additional accepted orders.
- Boost Conversion Rates: The availability of immediate, flexible payment options directly influences purchasing decisions, leading to overall higher conversion rates.
- Boost Customer Loyalty: Providing financial inclusivity promotes a positive shopping experience, encouraging repeat business while building brand loyalty.
- Increase Average Order Value (AOV): Customers are encouraged to make larger purchases when accessible finance options are available, boosting the AOV for business.
Leveraging Open Banking for Inclusive Financing
A big game changer in retail financing has been the use of Open Banking. It allows for a more accurate assessment of creditworthiness, beyond traditional credit scores. This technology enables us to offer financing to a broader range of customers, including those with thinner credit files or unique financial situations. The result is a more inclusive financing ecosystem that benefits both customers and businesses.
In a generation where financial flexibility and inclusivity is crucial, offering split finance option is an essential. In addition to this, offering a second-line model can allow for more inclusivity and help improve your acceptance rates, conversion rates and help boost AOV. Not only can it improve these key metrics but also help drive significant growth in customer loyalty for businesses.