Low-credit financing isn’t just a payment option – it’s a growth strategy. This blog explains seven practical ways merchants can use low-credit financing to increase conversions, boost average order value (AOV), and reach shoppers who might otherwise leave without purchasing.

Takeaways:

• Low-credit financing expands access for shoppers who don’t qualify for traditional credit.

• Merchants using financing tools see higher AOV, more completed checkouts, and stronger customer loyalty.

• Integrating prequalification and clear payment messaging helps convert more browsers into buyers.

For today’s shoppers, price isn’t the only obstacle – payment options matter just as much. Many consumers have limited access to traditional credit, but they still need ways to pay for big-ticket items. Offering low-credit financing gives these shoppers the ability to shop now and pay over time, helping merchants grow sales without relying on constant discounts or expanding product lines.

Low-credit loans or lease-to-own financing solutions, such as those available through Snap Finance, help businesses capture demand from customers who might otherwise walk away. These programs expand access and create a smoother path to purchase for a wider range of buyers.

Here are seven practical ways merchants can use low-credit financing to increase conversions and average order value (AOV).

1. Put "shopping power" in your customers’ hands

One of the biggest barriers to conversion is uncertainty. Shoppers are hesitant to shop when they think they might not be approved. When they apply online or in-store for financing and are approved before they shop, it removes that hesitation.

When you highlight “no hard credit pull to apply” and “instant decisions” as part of conversations about financing, you remove other barriers. 

With Snap Finance, shoppers can apply in minutes, online, or in-store and get a decision in seconds. Approval amounts range from $300 to $5,000. And Snap Finance’s Snap EDGE™ leads program for lease-to-own financing merchants promotes your business to customers who are ready to shop. Interested in learning more? Visit Snap’s For Your Business page.

2. Reframe price as a payment

Many shoppers don’t walk away because they dislike the product – they walk away because the total price feels too high all at once. Turning prices into payments helps reframe the conversation.

On product detail pages, in the cart, and at checkout, show how a large purchase can fit into weekly or monthly payments. When buyers can visualize paying over time, they may be more likely to complete the purchase.

This strategy of payment framing helps soften price resistance while positioning financing as a convenience rather than a last resort.

3. Use bundles and upsells to lift AOV

Preapproved shoppers tend to spend more – because they can. Once customers know their approval limit, they’re often open to upgrading or adding complementary products.

Suggesting bundles, extended warranties, or add-ons at checkout can raise the total purchase value significantly. In a survey of Snap Finance retail partners, merchants said customers using Snap spend 59% more at checkout and 75% say partnering with Snap has increased sales.

Highlighting additional items that fit within the shopper’s approved financing amount turns a single purchase into a higher-value transaction. Small adjustments in product presentation can lead to major revenue gains.

4. Capture the credit-challenged segment you’re missing

A large percentage of U.S. adults are credit-challenged or underbanked. Many of them want to buy, but they lack access to traditional credit lines. Snap Finance research shows that among consumers with credit scores below 670, 61% said available financing for all credit types was an important factor when choosing where to shop for a big-ticket item. Interested in learning more? Read our blog "Five things your business should know about credit-challenged consumers."

The same Snap Finance research found that 42% of those with lower credit scores have used installment loan financing in the past five years, and 24% have used lease-to-own financing in the same time period. That means if your store doesn’t promote inclusive financing, such as Snap Finance, you may be missing out on nearly half of potential customers.

Train staff to confidently discuss financing and use in-store or online banners with phrases like “No credit needed” or “Buy now, pay over time.” This kind of messaging reassures shoppers that your business is designed for all types of buyers, not just those with perfect credit.

5. Leverage seasonal peaks

Every sales calendar has high-volume seasons – tax refund months, back-to-school shopping, and holiday gift buying. Adding financing options to seasonal campaigns can turn these peaks into powerful revenue moments.

Pairing promotions with refund season helps customers maximize purchasing power when cash flow is high. Similarly, emphasizing financing as part of the sales process during holiday periods helps reduce price hesitation when demand spikes.

Snap Finance partners have access to no-cost social media graphics, point-of-purchase signage, and other marketing, all of which are invaluable during key seasons. This ensures customers know they can plan bigger purchases without paying all at once.

6. Prevent drop-offs at application

Even with strong interest, small moments of friction can derail a financing application. Common issues like mismatched addresses or missing entries can cause drop-offs or abandoned in-store applications.

Training staff to recognize and assist during these moments can make a major difference in approval completion rates. Simple fixes such as verifying customer information before submission and ensuring invoices match application details can help.

Streamlining the process improves the shopper’s experience and reduces lost conversions – keeping interested buyers from abandoning their purchase mid-application.

7. Optimize every surface

To maximize reach, financing needs to be visible everywhere customers browse. Use QR codes and point-of-purchase signage near high-ticket items in-store. On e-commerce sites, integrate financing callouts on product pages, carts, and at checkout.

Omnichannel visibility is critical – today’s buyers move between in-store and online touchpoints, and your financing offer should follow them seamlessly.

Tracking metrics like conversion rate (financed vs. non-financed), AOV by segment, and cart abandonment among applicants helps fine-tune your approach over time.

Measuring success

Implementing low-credit financing should always come with a plan to track results. Key metrics include:

• Conversion rate. Compare financed vs. non-financed transactions.

• Average order value. Monitor increases among financing users.

• Prequalification starts and completions. Gauge awareness and usability.

• Cart abandonment. Identify drop-off points.

• New-to-file customers. Measure how financing expands your audience.

Together, these insights show whether your financing integration is truly supporting business growth.

Making financing work for your business

Low-credit financing isn’t just about offering another way to pay – it’s about creating opportunity. When merchants integrate inclusive financing thoughtfully, they open doors for more shoppers to participate, purchase, and return.

Empower every shopper to say “yes” this season – partner with Snap Finance to bring convenient, inclusive payment options to your store.

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.