How retailers can help customers with financing this holiday season
Customers may hesitate to apply for financing because they fear rejection or don't understand the process. Learn how retailers can address common concerns about financing for customers, explain application requirements, and help holiday shoppers make informed decisions.
Key takeaways
Messaging about financing for customers should refer to a straightforward application experience, not guaranteed approval.
Recent Snap Finance research found that 63% of respondents with credit scores below 670 avoid applying for financing because they fear being declined.
Retailers may help reduce application confusion by explaining eligibility requirements, application steps, and what customers can expect after receiving a decision.
Snap-branded lease-to-own financing and loan options give eligible customers additional ways to pay over time.
Holiday shopping comes with plenty of decisions, and for some customers, applying for financing can be one of the most intimidating. They may worry about being declined, struggle to understand the application process, or question whether they'll qualify for enough financing to cover their purchase.
Recent research from Snap Finance showed that 63% of survey respondents with credit scores below 670 avoid applying for financing because they fear being declined.
For retailers researching financing for customers, it's important to distinguish between a convenient application process and actual approval eligibility. A straightforward application doesn't guarantee approval, but clear explanations and helpful support may encourage customers to explore their options.
Here's how retailers can address common concerns, explain available financing options, and help customers understand what comes next.
What should retailers know about financing for customers?
When customers ask about financing, they may be looking for a quick application, a greater chance of qualifying, or simply a way to pay over time.
Retailers should help customers understand four important questions:
Can I apply? Customers need to know the provider's basic application requirements before getting started.
How does the application work? Explain where to apply, what information they'll need, and how the process works.
Will I qualify? Approval depends on the financing provider's underwriting criteria, not the simplicity or speed of the application.
How much financing could I receive? Approval amounts vary and depend on the provider's eligibility requirements and underwriting decisions.
A simple application, a quick decision, and an approval are three different things. Retailers should describe verified application features accurately without suggesting that a fast process increases a customer's likelihood of approval.
Your associates don't make eligibility decisions or need to become financing experts. Their role is to introduce available options, explain the general process, and direct customers to the provider for questions about requirements and terms.
Why do some customers hesitate to apply for financing?
For customers with credit challenges, the fear of rejection may prevent them from exploring financing options in the first place.
Snap Finance's 2026 holiday study highlights several concerns among respondents with credit scores below 670:
63% avoid applying for financing because they fear being declined.
56% lack confidence they will be approved for new financing.
These findings reveal significant concerns about the application experience. However, they don't indicate how many respondents would actually qualify for financing.
For retailers, the opportunity lies in making information available without adding pressure. Customers may feel more comfortable exploring their options when they understand the process and know their questions will be answered.
An associate might begin with a simple question:
"Would you like me to explain the available options and what the application involves?"
This approach invites a conversation without assuming anything about the customer's credit history or eligibility. Retailers exploring financing for customers should focus on creating a welcoming environment where shoppers can ask questions and make their own decisions.
How can retailers make the application process easier to understand?
Customers may be more willing to explore financing when they know what to expect. Retailers can help by making application instructions clear, accessible, and consistent across their stores and websites.
Start by training your associates to explain the following steps:
Where to apply. Show customers how to access the provider's application through the methods available at your business, whether that's a website, QR code, text link, or in-store process.
What information they'll need. Direct customers to the provider's current requirements, which may include identifying, income, and banking information.
How they'll receive a decision. Explain the provider's stated decision process and what customers should expect after submitting their information.
Where to get assistance. Make sure customers know how to contact the provider if they encounter technical issues or have questions about their application.
Associates can help customers navigate the process and any challenges, but customers must enter their own personal and financial information through the provider's application. This helps protect sensitive information and keeps the application in the customer's control.
What questions should retailers be prepared to answer?
A short customer-facing FAQ can make financing information easier to find online or in-store. Consider including questions such as the following:
Where can I apply? Customers can use the application methods supported by the provider and available at your business.
What information will I need? Requirements vary by financing product. Customers should review the provider's current application instructions.
Does applying guarantee approval? No. The financing provider determines eligibility based on applicable underwriting criteria.
What happens after I receive a decision? If approved, customers should review their approval amount and agreement terms before completing a transaction. If declined, they can contact the provider for additional information.
Retailers may also benefit from understanding how prequalification works in retail, including how it differs from final approval.
How should retailers explain approval amounts and next steps?
Approval isn't the only concern customers have. They may also wonder whether the amount they qualify for will cover everything they need. Remember those 62% of respondents with credit scores below 670? They doubted they would receive enough financing to meet their needs. But this finding reflects expectations and concerns about financing amounts, not evidence that approved customers actually receive insufficient financing.
Retailers can help approved customers understand how their approval relates to their purchase by:
Reviewing the approved amount. Help customers compare it with the complete purchase total, including any applicable taxes, fees, or other charges.
Explaining payment terms. Direct customers to their financing agreement to review the payment schedule, total cost, and other applicable terms.
Discussing alternatives when needed. If an approval doesn't cover the intended purchase, help customers explore other suitable products.
Providing support after a decline. Direct customers to the provider's explanation and support resources rather than guessing why they weren't approved.
It's also important to explain that approval for a particular amount doesn't necessarily mean a purchase fits the customer's financial circumstances. Whether shoppers receive approval, a lower-than-expected amount, or a decline, clear next steps may help them navigate the experience without unnecessary confusion.
How can Snap Finance help retailers support customers with different credit backgrounds?
Financing availability may influence where customers choose to shop, particularly during a season when they're balancing holiday spending with other household expenses. Snap Finance's 2026 holiday survey found that 44% of respondents with credit scores below 670 say financing availability is a major factor in deciding where to shop for the holidays.
Retailers can respond by introducing additional ways to pay with Snap Finance, including lease-to-own financing and loan options, and helping customers understand the available application process. Snap Finance welcomes all credit types to apply.¹
Through Snap Finance, participating retailers can make access to lease-to-own financing and loan options available to eligible customers.
How can customers apply through Snap Finance?
Snap Finance supports several application methods, depending on the retailer's setup.
Customers may be able to apply through:
The Merchant Portal. Associates can initiate the application process and direct customers to complete their own information.
Text-to-apply or QR codes: Customers can access an application on their smartphones.
Snapfinance.com: Customers can apply online and receive a decision, typically in seconds.
Participating e-commerce experiences: Eligible shoppers can access applications through supported online retail experiences.
Retailers should confirm which methods are enabled for their business rather than assuming every application route is available.
How should retailers explain different financing products?
When discussing financing for customers, associates should explain the specific product available through their store.
For example, Snap-branded financing may include:
Lease-to-own financing: Customers lease eligible merchandise and make scheduled payments. They can obtain ownership by satisfying the applicable terms of their lease agreement.
Loan options: Approved customers finance eligible products and services through the applicable loan or retail installment contract and make payments according to their agreement.
These options have different terms, costs, eligibility requirements, and ownership structures. Retailers should direct customers to their specific agreements and provider resources for details.
Offering access to financing doesn't guarantee that a customer will receive approval or that an item will be affordable. But clear information and consistent support may help shoppers better understand the options available to them.
Help customers shop with greater clarity this holiday season
Holiday shoppers have plenty to think about without added confusion around financing. By introducing available options, explaining the application process, and setting realistic expectations, retailers may help customers make more informed decisions.
Want to learn more about the financing concerns shaping holiday shopping? Read the full 2026 Snap Finance holiday survey to explore how credit challenges and financial expectations influence consumers' shopping decisions.
Interested in providing more ways for your customers to pay? Explore a partnership with Snap Finance to learn about offering customers additional ways to pay.
For additional information about providing financing options and improving the customer experience, explore these articles:
Consumer finance programs for merchants: How they work and why they matter
Why customers who may be able to afford your product still walk away
Snap Finance, its affiliates, and partners offer consumers a range of solutions, which may include lease-to-own financing, installment loans, retail installment contracts, and credit cards. Product availability may vary. For detailed information, visit snapfinance.com/legal/products
¹ Not all applicants are approved. Approvals subject to underwriting qualification criteria.