Why Lenders Say "Yes" to Some Retailers... and "No" to Others

Why Lenders Say "Yes" to Some Retailers... and "No" to Others

Ever wondered why some retailers secure finance partnerships while others hit brick walls? It's not just about your sales volume - it's about risk, regulation, and relationships.

Let’s break it down.

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UK Consumer Credit Triangle

When you offer finance at checkout, you enter a regulated credit agreement under FCA rules - the strictest in the world. You, your customer, and the lender form an unbreakable trio:

Here’s the catch: Joint and several liability. If you fail to deliver (e.g., faulty product, poor service, or a 3-year bike warranty gone wrong), the lender must step in, even years later.  

If the lender drops the ball? The entire loan can be ruled invalid. Mis-selling claims (think overhyped solar savings or "guaranteed job" training courses) can trigger this too.

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The Lender's Nightmare

Lending is a low-margin game with high stakes: 

1. Default risk (will the customer repay?)
2. Regulatory scrutiny (the FCA fines for complaint spikes)
3. Reputational damage (lose FCA permissions = business over)  
   

No wonder lenders are cautious – they’re not just funding sales, they’re insuring your performance.

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How to Become a Lender's Favourite Partner

Want to stand out? Build trust like this:

1. Obsess Over Customer Happiness

- Resolve issues before they reach the lender.

- Aim for **zero escalations**.  

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2. Protect Your Reputation

- Lenders scour Trustpilot & Google Reviews.

- A 4.8+ rating? Gold. Below 4.0? Red flag.

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3. Understand Sector Risk

- High fraud sectors (watches, electronics) = extra scrutiny.

- Low fraud sectors (furniture, healthcare, fitness equipment) = smoother partnerships.

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4. Be Transparent & Compliant

- Clear terms, honest marketing, prompt complaint handling.

- Treat every sale like the FCA is watching—because they might be.

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The Bottom Line

Lenders don’t just want volume – they want predictable, low-risk, high-trust partners.  

Become that partner, and finance becomes your growth engine. Ignore the rules, and you’ll be left knocking on closed doors.

Selling bikes, bathrooms, or cosmetic treatments? Let’s talk about finance that works for everyone – without the regulatory drama.

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Need a lender who gets your sector? Contact us! 

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PS - we only work with merchants who put customers first!