Offering access to low-credit financing can help merchants increase cart size, reduce abandonment, and boost conversions by making purchases more accessible to underserved shoppers. Customers with subprime credit are often high-intent buyers who benefit from alternative financing, such as lease-to-own and loan solutions from Snap Finance. By integrating these inclusive options at checkout, you can expand eligibility, improve customer satisfaction, and drive measurable growth across both in-store and online channels.

Key takeaways

• Inclusive financing expands your customer base. Subprime financing opens the door to millions of shoppers who may be declined by traditional lenders but still have the intent and income to buy.

• Cart size and average order value increase with low-credit financing. Customers are more likely to complete larger purchases when they can spread payments over time.

• Offering access to alternative payments reduces cart abandonment. Shoppers are less likely to walk away when they see a clear, accessible path to ownership.

• Repeat financed buyers drive long-term growth. Customers who use low-credit financing often return, boosting lifetime value and brand loyalty.

Why flexible financing is a growth lever for merchants

Affordability is one of the biggest barriers to purchase completion, especially for customers with limited credit histories. When shoppers reach checkout and realize the total upfront cost is more than they anticipated, they often abandon their carts entirely. But that doesn’t mean they weren’t ready and eager to buy. They just need another way to pay.

It’s important to understand that credit-challenged customers are still high-intent buyers. They’re actively searching for solutions, comparing prices, and adding items to their carts. What they need isn’t persuasion; it’s access. By offering access to inclusive credit programs and starting the conversation, you can turn hesitation into action and unlock a new wave of conversions.

How subprime financing expands your market

The rise of inclusive credit in retail is reshaping how merchants think about accessibility. Traditional financing often excludes subprime customers, leaving a large segment of shoppers overlooked. But subprime doesn’t mean substandard. It means underserved. More than 47 million Americans are considered subprime borrowers, and 29% of U.S. consumers have a FICO^® score below 670. According to Snap Finance’s Subprime Financing Study, 78% of consumers with credit scores below 670 have been turned down for financing.

Low-credit financing for merchants bridges that gap. It empowers retailers to serve customers who may not qualify for prime credit but still have the intent and income to complete purchases. These shoppers are often loyal, responsive to alternative ownership plans, and eager to find merchants who meet them where they are.

7 ways low-credit financing drives more sales

1. Converting declined applications into completed checkouts

Traditional financing programs often result in declined applications, especially for customers with limited or challenging credit histories. That declined application is a dead end unless a second-look or tertiary solution is available.

Subprime financing acts as a safety net, converting traditionally declined applications into closed sales for more customers. By layering inclusive financing options into your point-of-sale experience, you give customers a path forward. With Snap Finance, shoppers can apply in minutes and get a decision in seconds online or in your store, removing barriers and creating a smoother way to purchase.

2. Expanding eligibility for more customers

Inclusive credit programs widen the funnel. Instead of filtering out shoppers based on credit scores and history, subprime financing often evaluates broader criteria such as income, employment, and banking history.

This expanded eligibility means more customers qualify, more carts convert, and more revenue flows through your business. It’s a win-win.

3. Increasing average order value with larger approvals

When customers can make payments over time, they’re more likely to add higher-ticket items to their carts. Snap Finance approval amounts can range from $300 to $5,000, depending on underwriting criteria. That flexibility can encourage customers to upgrade, bundle, or complete larger purchases they might otherwise delay.

For merchants, this often translates into a measurable increase in average order value (AOV). Instead of settling for smaller transactions, customers lean into the full value of their shopping experience. For example, customers using Snap Finance spend 59% more at checkout.¹

4. Reducing cart abandonment by offering alternative payments

Cart abandonment is a persistent challenge in e-commerce and retail. One of the top reasons shoppers leave a full cart behind? A lack of payment options. When customers don’t see a way to make their payments in a way that aligns with their lifestyle, they leave.

Offering access to subprime financing at checkout reduces that friction. It gives shoppers a clear, accessible path to complete their purchase even if they have less-than-perfect credit. By integrating financing options directly into your checkout flow, you remove barriers and keep customers engaged.

5. Building long-term loyalty with repeat financed buyers

Customers who successfully complete a purchase using low-credit financing often return. They’ve found a merchant who understands their needs and offers solutions that work. That builds trust, and trust builds loyalty.

Repeat financed buyers tend to have higher lifetime value. They’re more likely to return for future purchases, refer friends and family, and engage with your brand across channels. By supporting their first transaction, you lay the foundation for many more.

6. Helping merchants compete with big-box and buy now, pay later players

Major retailers and buy now, pay later (BNPL) providers have already embraced inclusive financing. To stay competitive, small and mid-sized merchants need to offer similar flexibility.

Subprime financing helps level the playing field. It gives independent retailers and e-commerce brands the tools to compete with payment options that rival big-box experiences. And unlike some BNPL programs, low-credit financing is designed to serve subprime customers.

7. Improving customer satisfaction and repeat purchase rate

When customers feel supported, they shop with confidence. Low-credit financing improves satisfaction by removing the stress of paying upfront. It turns “I wish I could” into “I’m glad I did.”

Satisfied customers are more likely to leave positive reviews, engage with your brand, and return for future purchases. Financing options for subprime customers aren’t just transactional; they’re transformational. They change how shoppers feel about your brand and how often they come back.

What categories see the biggest impact

Subprime financing delivers strong results across many retail verticals, but some categories see especially high impact:

• Furniture: High-ticket items like sofas, mattresses, and dining sets benefit from larger approvals and longer terms.

• Tires and auto services: These are essential purchases that often come with a high sense of urgency. Financing helps customers act quickly.

• Jewelry and electronics: Shoppers may delay purchasing aspirational items without payment flexibility.

Omnichannel performance matters too. Whether in-store or online, integrating low-credit financing ensures customers have access wherever they shop. Retail financing solutions that span channels drive consistency, convenience, and conversion.

Making low-credit financing work for your business

To maximize results, merchants should focus on three key areas:

1. Integrating financing at checkout

Make financing visible and accessible. Embed it into your checkout flow, product pages, and promotional materials. Use clear language like “Ask us about lease-to-own financing” or “Explore ownership plans that work for you.”

2. Communicating trust and transparency to shoppers

Customers want to understand what they’re signing up for. Use plain language, clear disclosures, and reassuring messaging. Highlight that not all applicants are approved, and that approval amounts vary based on underwriting. Transparency builds trust, and trust drives conversion.

3. Tracking AOV and conversion metrics post-launch

Once your financing program is live, track its impact. Measure changes in average order value, cart abandonment rate, and conversion rate. Look for increases in repeat purchase behavior and customer satisfaction. These metrics will help you optimize your strategy and prove return on investment. Snap Finance provides in-depth metrics and reporting to its retail partners at no cost to the merchant.

Key takeaways

• Financing can help you close the sale. Customers who might walk away become buyers when given flexible payment options.

• Merchants offering subprime financing see measurable ROI. From 75% of Snap partner retailers reporting that Snap increased sales to 83% saying customers are more likely to make a purchase with Snap, the numbers speak for themselves.¹

• Inclusive financing is becoming a competitive necessity, not an afterthought. As more retailers embrace customer financing programs, those who don’t risk falling behind.

Ready to unlock more sales with low-credit financing for merchants? Snap Finance offers inclusive solutions, including lease-to-own financing and loan options, designed to help merchants grow and turn affordability barriers into buying opportunities. Learn more about how Snap-branded solutions can help you increase cart size, boost conversions, and build lasting customer relationships.

Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. For more detailed information, please visit snapfinance.com/legal/products.

¹ Proprietary research from survey of Snap Finance merchants, 2023.