Customer Financing: How to Offer Financing to Customers

What Is Customer Financing and Why Should Your Business Offer It?

Customer financing lets businesses offer payment options to customers through a financing platform, lender network, or embedded application flow. Instead of paying the full purchase price upfront, customers apply for a loan or payment plan at the point of sale and businesses receive payment in full while the lender manages repayment.

Customer financing is one of the most effective tools a business can use to close more sales, increase average order value, and remove the price barrier between a customer's need and their decision to buy. Whether you're in home improvement, healthcare, or retail, learning how to offer financing to customers and choosing the right partner to do it, can be the difference between a completed sale and a lost opportunity. In this guide, we compare the top customer financing companies and help you determine which solution fits your business best.

Why Businesses That Offer Financing to Customers Grow Faster

Customer financing isn’t just a buzzword; it’s a powerful strategy for growing your business. Business customer financing helps companies increase average order value, improve approval rates, and remove payment barriers at the point of sale.

• Increased Purchase Power: Customers spend 15-30% more when financing is available. This means higher sales and larger projects for your business.
• Improved Conversion Rates: Offering financing options can boost conversion rates by up to 20%. More customers saying “yes” means more consistent revenue.
• Higher Average Order Value (AOV): Businesses see up to a 35% increase in AOV when payment plans are offered. This is especially valuable in industries like home improvement and healthcare, where big-ticket purchases are common.

Meet the Top Customer Financing Companies

These customer financing companies offer a range of customer finance options designed to help businesses close more sales while giving customers flexible ways to pay.

To help you navigate the landscape, here’s a look at some of the leaders in customer financing:

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How to Offer Financing to Your Customers

Choosing a financing provider is only one part of the equation. To successfully offer financing to your customers, you need a clear rollout strategy. Here's what the process typically looks like:

• Choose a provider that matches your industry, ticket size, and customer credit profile.
• Integrate the financing option into your point-of-sale or checkout flow — ideally with a single application.
• Train your sales team to introduce financing early in the conversation, not as an afterthought at the closing stage.
• Display financing options prominently in proposals, invoices, and on your website.
• Monitor approval rates and adjust your lender mix if a significant portion of customers are being declined.‍

What’s the best third party financing for my customers?

Business owners often ask, “what’s the best third party financing for my customers?” The answer depends on how well each provider supports approvals, flexible terms, and overall customer experience.

Deep Dive: What Sets These Companies Apart

LendingTree

LendingTree is like a financial matchmaking service, connecting businesses and consumers to a variety of lenders. This approach provides flexibility and options, which is great for customers who like to compare rates and terms. However, the wide array of choices can feel overwhelming for some, making it less ideal for those seeking a simple, straightforward solution. Additionally, for companies looking to speed up the sales cycle - LendingTree is an additional step for the consumer over services like Buy Now, Pay Later or a Point of Sale Financing platform.

Why Choose LendingTree:

• Broad lender network for maximum flexibility.
• Best suited for businesses wanting diverse options for their customers.

Synchrony

Synchrony is well-known for its partnerships with national retailers. Specializing in store-branded credit cards and long-term payment plans, it’s a solid choice for businesses looking to offer financing through familiar, recognizable brands.

Why Choose Synchrony:

• Strong partnerships with major retailers.
• Ideal for businesses aiming to leverage a trusted name.

GreenSky

GreenSky focuses on industries like home improvement and healthcare, offering deferred interest plans to make big-ticket purchases more manageable. While their application process is quick and approval rates are competitive, businesses should ensure customers understand the terms.

Why Choose GreenSky:

• Quick application process with competitive approval rates.
• Best for businesses handling large, high-value projects.

FinMkt

FinMkt takes the complexity out of customer financing with its multi-lender platform. Unlike competitors, FinMkt streamlines the process by providing multiple offers through a single application. This transparency and simplicity make it a standout choice, especially for businesses focused on customer satisfaction. Additionally, with FinMkt being a technology first organization the entire platform can be branded around the merchant.

Why Choose FinMkt:

• Transparent pricing and easy integration into existing systems.
• Flexible, customer-first approach with multiple lender options.
• Fully customizable, white-label solution tailored to your business needs.
• Instant support through in-app chat with response times measured in seconds.

Affirm

Affirm has become a go-to for e-commerce businesses, offering pay-over-time options with no hidden fees. Customers appreciate the straightforward terms and flexible repayment plans, making it a popular choice for online retailers.

Why Choose Affirm:

• Transparent and flexible payment options.
• Best suited for e-commerce businesses.

Klarna

Klarna’s Buy Now, Pay Later (BNPL) model has gained global popularity, especially in retail. Customers can split purchases into manageable payments, often with interest-free options, making it a strong contender for businesses seeking to enhance the customer experience.

Why Choose Klarna:

• Interest-free payment options.
• Ideal for businesses looking to attract younger, tech-savvy customers.

Afterpay

Afterpay specializes in interest-free installment payments, making it an attractive choice for retail and e-commerce businesses. Customers pay in four installments, making larger purchases feel more manageable.

Why Choose Afterpay:

• Simple, interest-free payment plans.
• Great for businesses targeting budget-conscious shoppers.

CareCredit

CareCredit focuses on healthcare financing, offering special payment plans for medical needs. It’s ideal for healthcare providers looking to offer patients flexible financing options for out-of-pocket expenses.

Why Choose CareCredit:

• Tailored for healthcare financing.
• Helps patients manage medical costs.

Bread

Bread provides flexible installment loans for retail and e-commerce businesses. Its customizable solutions allow businesses to offer payment plans that align with their customers’ needs.

Why Choose Bread:

• Customizable payment solutions.
• Perfect for businesses seeking tailored financing options.

The Right Way to Offer Customer Financing

Not all customer financing programs are created equal. To offer customer financing effectively, businesses need more than just a lender relationship — they need a frictionless application experience, competitive approval rates, and transparent terms customers can trust. A multi-lender platform like FinMkt solves this by giving customers multiple offers through one application, reducing the chance of a declined application killing the sale.

How FinMkt Stands Out

FinMkt’s multi-lender approach is like having your cake, eating it too, and then realizing there’s another cake waiting for you. Customers appreciate the transparency and flexibility, while businesses benefit from happier customers and increased conversions.

Unlike standalone lenders, FinMkt operates as a consumer financing platform that connects businesses with multiple lending partners through a single point-of-sale experience.

Key Features of FinMkt:

• Simplified Application Process: One application provides customers with multiple financing options. Think of it as speed dating for financing.
• Broad Industry Support: FinMkt caters to industries from healthcare to home improvement, ensuring versatility.
• Business-Friendly Integration: Plug-and-play capabilities mean you can integrate FinMkt into your existing systems without a technical headache.
• Fully Customizable and White-Labeled: Adapt the platform to reflect your brand, delivering a seamless experience for your customers.
• Instant Support: In-app chat with response times in seconds ensures your business always runs smoothly.
• Customer Empowerment: By offering multiple options, FinMkt ensures customers find the financing solution that works best for them.

Why Offering Customer Financing is a No-Brainer

Here’s why a well-structured consumer financing program has become a priority for businesses:

• Boost Revenue: Financing reduces the financial barrier for customers, leading to more completed transactions and larger projects.
• Enhance Customer Experience: Flexible payment options show customers you’re invested in meeting their needs.
• Drive Business Growth: For home improvement and healthcare providers, offering financing can open doors to new opportunities and increased revenue streams.

Customer financing solutions empower businesses to deliver more value, close more deals, and build lasting relationships with customers. It’s about creating opportunities for growth and success.

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Frequently Asked Questions

Q1: How to offer financing to customers?

To offer financing to customers, partner with a point-of-sale financing platform or lender network that integrates directly into your sales or checkout flow. Choose a provider that matches your industry and average ticket size, train your team to introduce financing early in the conversation, and display payment options prominently in proposals and invoices. A multi-lender platform improves approval rates by giving customers multiple offers through one application.

Q2: What is customer financing and how does it work?

Customer financing allows buyers to pay for purchases over time through a loan or installment plan instead of paying the full amount upfront. The business partners with a financing platform or lender, the customer applies at the point of sale, and — upon approval — the business receives payment in full while the lender collects repayment directly from the customer.

Q3: What types of businesses can offer customer financing?

Any business that sells high-ticket products or services can benefit from offering customer financing. It is especially common in home improvement, healthcare, retail, and e-commerce. Whether you run a roofing company, a dental practice, or an appliance store, a financing program helps remove the price barrier that causes customers to delay or abandon a purchase.

Q4: What should I look for in a customer financing company?

Look for a provider with high approval rates, flexible loan terms, fast application processing, and easy integration into your existing sales workflow. A multi-lender platform is preferable over a single lender because it sends one customer application to multiple lenders simultaneously — increasing the chance of approval and giving customers competitive options to choose from.

Financing for Customers: How to Choose the Right Provider

When deciding on a financing partner, consider your business’s needs and your customers’ preferences. Do you value variety, like LendingTree offers? Or do you prefer a streamlined, transparent process like FinMkt provides? Maybe you’re drawn to GreenSky’s quick approvals or Synchrony’s strong retail partnerships.

For businesses looking for simplicity, transparency, and flexibility, FinMkt stands out as a top choice. Its multi-lender platform, easy integration, and customer-focused approach make it a powerful tool for driving revenue growth and enhancing the customer experience.

Final Thoughts

Customer financing isn’t just a tool; it’s a powerful strategy for growing your home improvement or healthcare business. By choosing the right financing partner, you’re not only boosting your bottom line but also making a tangible difference in customers’ lives. Whether it’s helping a homeowner tackle a long-overdue project or enabling a family to afford necessary healthcare, financing can turn opportunities into success.

So go ahead—embrace the power of financing. Watch your revenue grow, your customers thrive, and your business reach new heights. With the right partner, the sky’s the limit.

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