Getting Started with Customer Finance: A Beginner's Guide for UK E-Commerce Retailers

Getting Started with Customer Finance: A Beginner's Guide for UK E-Commerce Retailers

If you're an online retailer selling medium to high-value goods – like furniture, jewellery, bicycles, or even services such as vocational training or private healthcare – offering customer finance can be a game-changer. It boosts conversions, increases average order values, and helps your customers spread the cost without hesitation.

But where do you start if you're new to this? As experts in consumer financing solutions at FinMatch, we've helped countless UK merchants navigate these waters.

Keep reading for a straightforward roadmap to get you up and running.

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Choose the Right Lender

Partner with a lender whose credit products align perfectly with your offerings.

Look for competitive APRs, flexible terms (e.g., 6-60 months), and a credit policy that matches your target customers for high approval rates.

Avoid one-size-fits-all providers – tailored options ensure better results and happier shoppers.

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Integrate Finance Seamlessly on Your Website

Integration has two key elements:

1. Promotion Throughout the Journey: Highlight finance options early – on category, product and cart pages – to educate and entice customers.

2. Checkout as a Payment Method: Add finance as an easy option at checkout. Check if your lender offers plug-ins for popular platforms like Shopify, WooCommerce, or Magento.

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Navigate FCA Authorisation

In the UK, if you're offering consumer finance over 12 months or with APR >0%, you'll need FCA authorisation.

Options include:

1. Direct Authorisation: Budget around £3k and expect 3 months – ideal if you're committed long-term.

2. Appointed Representative (IAR): Join under an authorised firm for a quicker start, but note limitations like being tied to one provider. Not all lenders offer this. A smart entry point? Begin with 0% finance for up to 12 months (no authorisation needed), then expand once authorised.

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Getting Started with Finance

Pro Tip: Don't go it alone – partnering with a specialist like FinMatch simplifies everything from lender matching to integration and compliance.

We've got the expertise to ensure your setup drives real growth.

Ready to unlock customer finance for your business?

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Contact us today!