Insights

Why Are My Customers Being Declined for Finance?

Understand why your customers are being declined for finance and what actions you can take as a retailer to boost acceptance rates.
Scott Law
2 min to read

Why Are My Customers Being Declined for Finance?

Struggling with low conversion rates?

You’ve built a stellar e-commerce store, invested in Google Ads, and grown a loyal social media following. But too many customers are being declined for finance – or abandoning their applications.

You’re not alone. Here are 4 ways to boost approvals and turn clicks into customers.

‍

1. Choose the Right Finance Provider

57% of UK adults have less than £10,000 in investible assets (all money held in cash savings products, savings in current accounts, plus the current market value of any investment products held).

A finance provider with strict criteria could be costing you sales.

Solution: Partner with a provider whose credit appetite matches your customers' needs.

‍

2. Offer Affordable Payment Plans

Selling a £5,000 bike or bathroom? Short-term plans like pay-in-3 won't cut it.

Higher-value items need longer, more affordable terms.

Solution: Offer flexible plans (e.g. 12-36 months) to improve approval rates.

‍

3. Provide Multiple Finance Options

No single lender serves the needs of every customer.

Offering at least two finance providers gives customers a choice and boosts approvals.

Solution: Diversify your finance partners to capture more sales.

‍

4. Signpost Clearly to Avoid Abandoned Purchases

Up to 75% of customers declined for finance abandon their purchase.

Clear signposting to the right finance option (e.g. budget, credit profile) increases conversion.

Solution: Use the FinMatch App to present finance offers seamlessly.

‍

Conclusion

FinMatch empowers merchants to offer multiple finance options from top lenders, seamlessly increasing approvals and sales.

‍

Ready to boost your conversions?

‍

Contact us today to start winning more customers.

Sources:

  • Financial Conduct Authority (2024) Financial Lives 2024 Survey: Vulnerability & Financial Resilience - Selected Findings. Available at: https://www.fca.org.uk/publication/financial-lives/fls-2024-vulnerability-financial-resilience.pdf