July 2023

Offering finance the right way

When you can offer finance to customers, you have a powerful tool at your disposal - but it has to be used carefully! We look at how to offer finance the right way.


As a retailer, you understand the importance of providing a seamless and convenient shopping experience for your customers. In today's competitive market, offering flexible payment options can be a game-changer, especially for customers making higher-value purchases. This is where Point of Sale (POS) finance comes into play.

In this blog post, we will delve into the world of finance and explore its benefits for retailers like you. POS finance can significantly impact your sales and customer satisfaction, by splitting larger purchases into easier-to-budget repayments. We will guide you through the process of selecting the right finance provider, ensuring a good fit for your customers' needs, and highlight important considerations for implementation in your retail environment.

Comparing Providers

When it comes to choosing a POS finance provider, there are several factors to consider to ensure the best fit for your business and customers. 

Rates, Fees & Charges

Start by examining the rates and fees associated with different providers. Understanding these costs will help you determine the attractiveness of the finance options for you and your customers. 

Finance Offering

It's essential to review the minimum and maximum finance amounts, and terms, set by each provider. It sounds straightforward, but this needs to align with your product and your customers. For example, if a provider's minimum finance amount is more than your average customer spend, this might not be the best fit. Similarly, if your customers tend to replace their purchase from you every 12 months, a finance provider offering terms of 24 months might not be a suitable option. 

Lending Criteria and Inclusivity

Equally important is assessing the lending criteria and inclusivity of each provider. Different providers may have varying requirements. Understanding these criteria will enable you to gauge the accessibility of financing for your customers.

Business Goals and Values 

You should also establish whether a particular finance provider aligns with your business goals and values. Take the time to compare providers based on their reputation, customer service, technology capabilities, and any additional benefits they offer. This evaluation will help you make an informed decision that not only meets your customers' needs but also enhances your overall retail experience.


Conduct thorough research, read reviews, and seek recommendations to ensure that the provider has a solid reputation for delivering fair and reliable finance.

By carefully considering these aspects and comparing different providers, you can confidently select a POS finance partner that meets your requirements and enables you to offer a seamless and valuable financing solution to your customers. In the next section, we will explore key considerations for implementing POS finance in your retail environment, ensuring a smooth integration that benefits both your business and customers.

Integrating Finance

  • Some providers will require in-depth applications and potentially lots of paperwork 
  • Some providers services will require an app (and this means that the customer must have  a smartphone) 
  • Some providers will offer a variety of online/in store application processes
  • Repayment flexibility 
  • Interest free windows etc 

When integrating POS finance into your retail environment, there are important factors to consider that can impact the customer experience and the efficiency of your operations. 

The Application Process

Be aware that different finance providers may have varying application processes. While some may require in-depth applications and extensive paperwork, others may leverage technology to offer a more streamlined application experience.  Understanding the level of complexity involved in the application process will help you assess the impact on your customers and determine the most suitable provider for your business.

Access to Technology

Certain finance providers may require customers to have a smartphone and install a dedicated app to complete the application and manage their financing. This technological requirement may influence your customer base, so it's important to consider the accessibility and compatibility of the provider's app with your target audience.

User Journey Adaptability

Additionally, explore the variety of online and in-store application processes offered by different providers. Some providers may offer online applications only, while others provide the flexibility for customers to apply both in-store and online. Understanding the available options will allow you to cater to the customer preferences that apply to you.

Repayment Flexibility 

You may want to look for providers that offer flexible repayment options, such as weekly, fortnightly, or monthly payments, to accommodate your customers needs. Some providers may offer payment-free or interest-free windows. 

By taking these considerations into account, you can select a POS finance provider that aligns with your customers' preferences, integrates smoothly with your retail environment, and enhances the overall retail experience. 

Offering finance

Once you have selected and engaged a finance provider, it's important to remember that not all sales or all customers may be suitable candidates.

Communicating Finance

Clearly communicate the availability of your finance offering through relevant channels, such as email newsletters, social media posts, and targeted advertising. Highlight the advantages to attract customer interest, but be aware that there are regulatory and legislative rules and restrictions that you will have to adhere to. These are different product to product, and market to market, so it’s important you familiarise yourself with the requirements relevant to you, and that you work closely with your finance provider to ensure you’re communicating correctly. 

Consider the availability of in-store or online collateral provided by the finance provider. 

Understand and Explain the Offering

When engaging with prospective customers, take the time to explain the minimum criteria required for finance. While respecting customer privacy and being sensitive to individual situations, ensure that they fully understand the eligibility requirements and allow them to assess whether they meet them. These criteria may include being a citizen, having the ability to comprehend the terms and conditions of the loan agreement, and meeting the minimum age requirements. Ensure your staff are equipped with this knowledge so they can accurately inform and address customer queries. 

Things to consider

Offering Finance as a Tool 

It's important to understand that offering finance is intended as a tool to make larger purchases more accessible by breaking down costs into smaller, manageable payments. 

Financing can provide convenieJulnce and flexibility in spreading out an upfront expense - but it doesn’t make the purchase more affordable.

H3: Suitable candidates for finance are not vulnerable or experiencing financial hardship 

By reinforcing the understanding that finance is a tool for accessibility rather than affordability and by being diligent in explaining requirements, retailers can promote responsible and ethical use of POS finance, benefiting both their customers and their business.


Offering POS finance can be a valuable addition to your retail business, providing customers with the flexibility to make larger purchases more accessible. 

Consider factors such as rates, fees, and lending criteria when comparing providers. Additionally, evaluate their reputation, customer service, and technology capabilities to make an informed decision. Integrating finance into your retail environment requires consideration of the application process, access to technology, user journey adaptability, and repayment flexibility. By addressing these aspects, you can create a smooth and efficient financing experience for your customers.

Remember, not all customers may be suitable candidates for finance. Clearly communicate the availability of your finance offering and explain the minimum criteria required, ensuring customers understand the eligibility requirements. Keep in mind that offering finance is a tool for accessibility, not affordability, and suitable candidates should not be vulnerable or experiencing hardship.

As you explore the possibilities of offering POS finance, we encourage you to consider etika as a prospective provider. With a focus on delivering fairer and inclusive finance, etika will enable you to provide your customers with a trusted and responsible financing option that enhances their shopping experience while driving growth for your business.

POS finance is a strategic decision that aligns with your business objectives and caters to the needs of your customers. By implementing finance thoughtfully and responsibly, you can differentiate your retail business and empower your customers to make their desired purchases with ease.

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