Why customers don’t ask for financing – and why you should still talk about it
Financing is a sensitive topic to introduce during the sales process, but avoiding it means leaving revenue on the table. Explore why shoppers don’t speak up and why it’s essential for merchants to make financing part of every sales conversation.
Key takeaways
Customers often won’t bring up financing so it’s up to you. Many shoppers avoid asking about payment options due to stigma, fear of denial, or not knowing it’s available.
Proactively promoting financing boosts conversions and loyalty. When sales teams introduce financing early, customers are more likely to complete purchases and return again.
Clear communication and trained staff close more sales. Effective signage and confident team members help normalize financing as part of the buying experience.
How many sales are you missing because of a missed conversation about financing? Many shoppers would rather walk away from a purchase rather than bring up financing, which can be an uncomfortable topic if you’re often denied credit.
If customers, including those with less-than-perfect credit, are reluctant to start a conversation about alternative financing for retail customers, they may never know the options available to them.
Shoppers often depend on knowledgeable sales associates to guide them through their choices, including payment options. Businesses that train their teams to be well-versed in financing and able to easily walk customers through the application process can bridge this credit gap.
Recent research from Snap Finance found that among shoppers with lower credit scores, 20% rely on store associates to recommend the best financing for their situation.
If you’re waiting for customers to ask about financing, you’re missing the chance to serve a large part of your customer base. Proactively offering financing can transform your sales numbers and build lasting loyalty.
Why customers don’t ask for financing
Understanding why customers don’t ask about financing is the first step toward solving the problem. Several key factors are at play, and most have nothing to do with a lack of interest.
Stigma and pride: Many customers don’t like talking about money or fear the embarrassment of being denied financing. This creates a powerful barrier that keeps many people silent.
Wrong assumptions: Customers with less-than-perfect credit often assume they won't qualify for financing, so they don’t even bother to ask. They count themselves out before there’s an opportunity to say "yes."
Lack of awareness: Sometimes customers simply don’t know about available financing in your store. If there is no in-store signage, website banners, or prompts during the sales process, they may assume their only option is to pay upfront or with a credit card.
These barriers create a cycle of missed opportunities. A customer needs a new mattress, for example, but worries about their credit. They see the price tag, feel a sense of anxiety, and walk out without a word. You lose a sale, and the customer goes without an essential item. This scenario plays out over and over in stores and businesses.
The high cost of waiting for customers to speak up
Customers who are unsure if they can afford a purchase are more likely to abandon their carts online or walk out of your physical store. These are not just lost sales – they are lost relationships. These customers may not return, assuming your store is not for them.
More than 47 million Americans are considered subprime borrowers – up 1.2 million in the last year. Although it can vary from lender to lender, a subprime borrower is generally defined as someone who has a FICO® score below 670 – and 29% of consumers have a FICO score below this threshold.
This is a significant segment of the population that is actively looking for ways to pay for essential products and services – and represents a hidden demand for financing options that your business could be tapping in to.
Why you should proactively promote financing
Shifting from a passive to a proactive approach with customer financing for retailers can unlock incredible growth. When you make financing options a visible and normal part of the shopping experience, everyone wins.
Merchant benefits of lease-to-own or accessible loan options
More conversions
Financing can turn browsers into buyers. Promoting financing at checkout and throughout your store gives customers the confidence to move forward with their purchase.
Increased average order value (AOV)
When customers can pay over time, they often feel comfortable buying higher-quality items or adding more to their cart. Merchants who partner with Snap Finance see a 59% lift in average order value, according to a 2023 survey of Snap’s retail partners. Customers can get what they really want, not just what they can pay for in full today.
Improved customer loyalty
When you provide a way for customers to get what they need, you build a powerful emotional connection. They will be more likely to return and recommend your store to friends and family.
Leveled playing field
Major retailers have normalized buy now, pay later (BNPL) and other financing options. Customers have come to expect more options. By offering access to inclusive financing solutions, including Snap-branded lease-to-own and loan options, you give shoppers a reason to choose your business instead of big-box stores and online giants.
Snap’s lease-to-own financing and Snap Loan® can help you grow your business
Snap Finance addresses the very reasons customers hesitate to ask for help. All credit types are welcome to apply for Snap-branded lease-to-own financing and loan options.1 With Snap Finance, you open your doors to a larger segment of the market – shoppers who are ready and willing to make a major purchase but need an alternative to traditional financing.
Experience the Snap Finance advantage:
Customers of all credit types can apply for approval amounts up to $5,0002
Increase your conversions and average order value with Snap’s strong approval rates and amounts.1
Snap’s powerful marketing programs drive new and repeat business to your store
Funding is expedited to your account, typically within 48 hours of completed transactions.
Snap Finance merchant services are designed to make the process easy for you and your customers.
How to introduce financing without being pushy
Prioritizing installment loan and lease-to-own visibility normalizes the conversation and often translates into sales that might otherwise be lost. Snap Finance found that among those who didn’t recall learning about financing during the sales process, 45% of shoppers with lower credit scores would have used financing if they had known about it .
Integrating the financing discussion early and often in the sales process ensures that every customer, regardless of their credit score, understands the full range of pay-over-time options available. This simple shift can capture revenue that previously walked out the door.
Use clear marketing materials
Simple, effective signage is crucial. Place signs near high-ticket items, at the cash wrap, and on your front door. Snap Finance partners have access to no-cost window clings, posters, brochures, checkout counter displays, and web banners to clearly communicate financing is available.
Train your staff
Provide your associates with talking points, and can easily walk customers through financing options, including how to apply. Empower your sales team to proactively mention point-of-sale financing as a helpful service and ensure their approach is helpful, not high-pressure.
The competitive edge your business needs today
Customers increasingly expect convenient and inclusive pay-over-time options to be available to them. Merchants who fail to deliver risk being left behind. If a customer can get the same product from a competitor down the street with a simple, accessible pay-over-time option, you will likely lose that sale. Proactively offering access to financing is not just about increasing sales; it's about staying relevant and competitive.
And remember, just because your customers don't ask for financing doesn't mean they don't want or need it. The silent demand is there, waiting for you to acknowledge it. By taking a proactive approach, you open your business to higher conversions, larger sales, and more loyal customers.
Ready to unlock the hidden sales opportunities in your business? Partner with Snap Finance today and start turning silent interest into closed sales.
Check out these additional resources from Snap Finance:
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 Not all applicants are approved. Approvals subject to underwriting qualification criteria.
2 Average approval amounts vary across product types and range from $300 to $5,000. Subject to underwriting qualification criteria.