Study: Retailers Want More From Secondary Financing Programs

Retailers are reaping the benefits from secondary financing as these products have helped them improve their sales and draw a wide variety of customers.

This type of financing provides lending options to consumers who are not qualified for a retailer’s primary financing program.

While they acknowledge the advantages of second-look financing options, retailers say their current platforms lacks in technology and other features.

This is according to NewComLink’s first Retail Financing Survey, which interviewed financial decision makers at 10 mid-sized retailers of furniture, jewelry, electronics, and other products across the US.

The study found that many retailers believe their current platforms are lacking in technology. Retailers want better technology features such as tablet options, online applications for consumers, and omni-channel capabilities.

They also want more hands-on support from their secondary financing provider, the study showed.

“Retailers told us that secondary financing options routinely boost sales, but many of the secondary financing programs they’re using are behind the times,” said Doug Filak, chief marketing officer at NewComLink.

“To get more customers interested in second-look financing options, it’s necessary to use a solution that makes the process as easy as possible for both the consumer and the retailer.”

When asked about the drawbacks of their current solutions, respondents cited limited customer service options for consumers, hands-off account representatives and a lack of program training for sales associates.

Consumer research say the availability of credit options affects consumers’ choice of retailers. According to a recent study, 3 in 10 consumers will more likely shop at a retailer with credit options, with 59 percent of 18 to 34-year-olds looking at financing options when choosing a retailer.