By Cecile Corral, contributor to the contribution
American consumers are fighting with a financial landscape that becomes more complex every month. Increased mortgage interests, stubborn inflation and rising living costs have put increasing pressure on household budgets under pressure, so that many buyers are more careful and addicted to the credit than in recent years, without relief in sight.
For suppliers and retailers for house facilities, these economic headwind can be discouraging. At this moment of uncertainty, however, loan providers say: a chance to meet consumers where they are financially and promote permanent loyalty through strategic, well -designed and reliably transparent loan offers.
When access to traditional loans tightens, buyers are looking for alternatives, solutions that are quick, flexible and transparent.
For retailers, this means that the financing at the cash register is no longer just a comfort. It is a critical growth lever that is able to unlock higher conversion rates, larger average order values and stronger long-term relationships.
In order to understand better how credit behavior changes and how the furniture can now affect five most important actors in the area of consumer financing: catapult, koalafi, snap finance, synchrony and versatile loans.
All along the way, these experts pointed out on the same trend: the financing is not only more important for home furnishing path-to-purchase facility. It becomes a strategic distinguishing feature.
1. Understand that today''s cultivation of loan requirements from all demographic characteristics arise
Consumers on the whole line from those with lower credit scores to households are actively financing with higher income searches.
“We see more applications all along the line,” said Vicki Turjan, President and Chief Operating Officer in versatile loan. “Buyers not only examine primary financing, but also secondary and tertiary options that they may have ignored in the past.”
Ryan Slobodian, chief of staff at Snap Finance, agreed. “It is a perfect storm. The mortgage lenses are high, the rent increases and basic costs such as food are stressful budgets. People need help with larger purchases, but they are looking for solutions that go beyond credit cards and home loans.”
This means that offering financial resources is a necessity to collect demand on today's market.
2. Offer flexible, accessible options to meet the emerging requirements
The financing instruments from five years ago no longer have it. Today's consumers expect – no, needs – quick decisions, flexible terms and transparency.
“Consumers have themselves for rental options for rental contracts and buy-now-play-Later Laterer because they are accessible and easy to manage,” said Mark Denman, Executive Vice President for Business Development of Koalafi. “Even buyers who had not taken into account these options before are now open to them.”
Catapult that specializes in the financing of rental contracts for non-primary customers is an increase in demand.
“Our customers do not finance luxury. They buy essential goods like a bed, a refrigerator or a dining set,” remarked Derek Medlin, President and Chief Growth Officer. “Traditional credit can be unreachable, so we offer an alternative way to ownership.”
What companies can do for home furniture:
- Add the rental agreement to property and not loan -related options for your payment stack.
- Work with providers who offer immediate decisions and clear conditions.
- Make financing information on your website and brands easy to find.
3. Integrate the financing into the shopping experience
If financing options are only mentioned at the cash register, this means for missed conversions.
Today's consumers want to understand how a purchase affects its budget before they get into the car.
“The financing has become part of the decision -making process,” said Turjan von Versatile Credit. “That is why tools such as monthly payment computers, pre -qualification connections and kiosks in the shop are so valuable. They help buyers to visualize the affordability in advance.”
Synchrony fulfills this need by offering several financing products from the Synchrony Home Credit Card, which later pay, dividing payments into short or long-term installments.
“We want to give single dealers tools that correspond to every purchase, be it a lamp of 200 US dollars or a section of 5,000 US dollars,” said Curtis Howse, Executive Vice President and CEO of Synchrony's Home & Auto platform. “This flexibility builds up and increases the conversion.”
What companies can do for home furniture:
- Feature financing information on product pages, not just the cash register.
- Use digital tools that display estimated payments in real time.
- Make sure financing options are introduced early.
4. “Yes” to say to more buyers does not do it''t means taking more risk
Many corporate opportunities have unknowingly rejected buyers every day, not because the demand is missing, but because the loan deal is.
“Retailers are often surprised to find out that not primary buyers are already visiting their website or going to their business,” added Medlin. “The intention is there, but they miss a way to pay.”
Through the partnership with providers who operate the full loan spectrum-an impact on the rental agreement, installment and revolving credit options, can dramatically increase their conversion rates.
With the KPAY Virtual Credit Card from Katapult, buyers can buy directly from partner dealers who use a simple mobile cash register. “For retailers, it is seamlessly and authorizes customers who may otherwise go away,” said Medlin.
Koalafi's Denman: “The financing should be inclusive. An approach with full credit spectrum helps retailers to convert more traffic into actual sales.”
What companies can do for home furniture:
- Work with providers who serve prime, close and non-prime segments.
- Let the buyers pre -qualify without a hard credit.
- Consider a multi-lender strategy to maximize the approvals.
5. Position financing as a loyalty structure instrument
Take the financing to build trust and long -term loyalty, and not just as a retail strategy.
“If you offer customers clear, fair credit solutions, they give them trust, not only in the purchase, but also in their brand,” said Synchrony's Hows. “This leads to greater satisfaction, a stronger repetition rates and a greater lifespan.”
In the event of a catapult, the data prove this. “We saw a repetition rate of 62% in the fourth 2024,” Medlin quoted. “This is because customers come back if they feel supported.”
Slobodian of Snap Finance emphasized the importance of education: “We not only give people the opportunity to provide tools and resources to help them make smart decisions in a difficult financial environment.”
What companies can do for home furniture:
- Promotion of financing as a customer advantage, not as a fallback.
- After buying loyalty offers or special financing funding.
- Work with providers who offer transparency and consumer support.
6. The financing as a strategically Chance for long -term growth
For corporate furniture that navigates in a challenging economy is one of the most intelligent steps you can take to rethink your approach to consumer loans.
Regardless of whether it is a new sofa, a dining table or a mattress, the financing helps the buyers to say “yes” if they couldn't do it, and there is a competitive lead.
“Retailers don't have to leave any income on the table,” said Denman from Koalafi. “With the right loan strategy, you can transform browsers into buyers – and buyers into loyal customers.”