Retail finance, BNPL, or flexible payments—whatever you prefer to call it—has grown substantially over the past 10 years, yet there are still sectors not using it. Apex Insight reported in 2023 that the market was worth £12.5bn a year.
So why are flexible payments important?
When I walked around my local garden centre last weekend, desperately looking for inspiration, I was presented with expert staff, a wide range of products, and displays that delivered the garden inspiration I was seeking. However, what I wasn’t presented with were flexible payment methods. I saw the price and that was that!
Later in the day, I visited that orange company, the largest DIY store in the UK. Within a few feet of the door, I was presented with hot tubs on finance, followed by garden sheds, paving slabs, and patio furniture—all available with flexible payment options.
So why are they offering flexible payments?
In a cost-of-living crisis, where people are more careful with their money, they want to make it last longer. Giving them the opportunity to buy what they want and spread the cost is essential. Think of your own decisions as a business owner. If you have to pay a bill in one hit or spread it over a few months with no disadvantage, what would you do? Customers think the same way. Over the past few years, the growth of BNPL has meant that finance is no longer just about high-value goods; it’s used for clothes, shoes, tech, and more. Love it or hate it, BNPL has made finance more accessible. If retailers are not offering it, rest assured, their rivals are, and they will capture the sale.
In addition, 30% of our business partners tell us that when a customer uses flexible payments, they are more likely to spend more. A £1000 purchase over 10 months is only £10 more per month for an additional £100 of spend. Customers are more likely to upgrade the shed, buy nicer stones, or even add that bird bath to the project as it’s only a marginal difference.
66% of indoor furniture customers use retail finance to make their purchase. For outdoor furniture, it’s estimated the number is less than 10%, mainly due to the availability of flexible payments and not the desire of the customer.
So why doesn’t everyone offer it?
Many small businesses have shied away from offering retail finance because of the complications, regulations, and costs. However, these reasons are legacy issues. The industry has moved on over the years. Traditional retail finance companies have barriers to offering finance, such as minimum turnover and finance volumes. The majority of companies are only interested in larger retailers.
- Any company can now offer interest-free credit to their customers for up to 12 months without the need for regulation.
- Customer applications are now easier than ever before; they can complete them on their own device, removing any privacy or data concerns.
- Buyline has a 24/7 training platform.
- Subsidy costs are not as high as losing the sale to a competitor.
- You get paid within 3 days of the customer receiving their goods.
So who are Buyline?
Buyline is a small retail finance provider based in Gloucester. We take pride in our size and the fact we understand small businesses—after all, we are one! As a consequence, we understand the challenges. We don’t have all the advantages of our bigger rivals, nor are we given the same opportunities, but like many of our business partners, we rely on building strong relationships with our partners.
We’ve tailored our proposition to support small businesses. We don’t have a barrier to offering finance. Whether you expect to finance £10,000 or £1m of goods, we have an option for you. If you want to offer unregulated interest-free credit up to 12 months or regulated credit up to 48 months, we can support you. We don’t have a minimum volume or a minimum business size we deal with.
With our BuylineGo product, our team can get you trading within weeks. Your customers can buy their dream garden projects and use our flexible payment methods within weeks of the first engagement. You can then reward your customers with the buying power they are usually given by your bigger competitors, and your business will grow.
If you want to be regulated and offer your customers longer terms or even interest-bearing products to reduce your own costs, then BuylinePro is the product for you. You can then offer fully regulated credit with all the same advantages, but you unlock interest-free options up to 48 months.
What about the rules and staff training?
Our partner success team will support you through launching the service in-store and online. We’ll provide you with all the regulatory requirements and ensure you are compliant. We will make sure you have the right point-of-sale material, and more importantly, that your key staff are trained in how to talk to customers about finance and how to use our system. You’ll also have access to our free training suite, which allows you to roll out training to any other staff whenever you want
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