Finance is live. But is it still working?

Ben Turner on why retailers should keep reviewing their finance proposition after setup

If you work in retail, getting a finance solution live can feel like crossing the finish line; its job done, time to move on to the next one. 

But in reality, for many retailers, it is not that straightforward.

What really happens is it just moves the business into the equally important review phase.

The reason it moves on so quickly is that, in reality, your customers and their needs inevitably change. 

Not only that, trading conditions fluctuate. Product ranges evolve. Average order values rise and fall. Lender appetite grows and shrinks. Regulation constantly moves the goalposts.

So basically, everything changes and usually all at once, and the finance proposition you spent so long creating at the start of the process may not fit so perfectly six or twelve months later. 

Product and finance on an equal footing  

Think about when you launch a new product range. You don’t just launch it and leave it untouched forever. You’ll review demand, scrutinise the price points, your margins, the seasonality, react to your customer behaviour and respond to what your competitors are doing.

So, shouldn’t you take the same view on your finances? By giving it the same attention and time, you can ensure it’s exactly right for your business and your customers’ needs.

It’s by understanding the challenges that businesses face and helping them understand the need to review that Ben Turner, our Head of Account Management at Product Partnerships Ltd, is closest to and sees every day as part of his highly specialist role.

Answering the ongoing questions

I see every day that a lot of time and attention naturally goes into getting permissions, providers or applications right at the outset, basically making sure everything is in place.

But the bigger questions are the commercial ones: is the finance arrangement still helping the business sell in the way customers want to buy? 

An example of this is the recent coverage in Furniture News and Big Furniture Group, which have identified its relevance and importance to those who operate in the furniture sector. 

The conversation after launch is different

At the setup stage, firms are often naturally focused on getting the right structure in place. That might mean permissions, an Appointed Representative route, Direct Authorisation, lender onboarding, financial promotions approval, complaints processes or training.

Those things matter, but once finance is live, the questions become different.

• Is the finance option being used in the way the business expected?

• Are customers dropping out at a certain point?

• Are decline rates changing?Are staff confident discussing the options available?

• Is the lender relationship still working commercially?

• Has the business started selling different products?

• Has it started attracting different customers?

• Is it operating through different channels?

These are the types of questions that tend to come up in the conversations I have with my clients. They are not always things that need to be addressed on day one, but they can become important quickly as the business evolves, so constantly reviewing makes long-term sense.

Thinking beyond BNPL 

A BNPL option may work well for lower-value or shorter-term purchases. Interest-free credit may be more appropriate for certain considered purchases. Interest-bearing credit may create more flexibility for larger transactions or longer repayment periods. Some customers may need a different route if they are declined by one provider.

So the point is not that every retailer needs every finance product, it’s the that the finance options they do offer should match how your customers want to buy.

Furniture fits the narrative, but it’s not the full picture 

The furniture is sector is a good example of how this all work in practice, as purchases are often high value, considered and emotionally important. A new sofa, bed, dining set or full room purchase is rarely an impulse decision; it’s one that’s been considered by the customer.

For some customers, a short-term BNPL option may not be the most suitable or commercially effective route. They may need a longer repayment term, a different finance product, or clearer options at the point they are making the decision.

The same logic can apply across such diverse sectors as bathrooms, kitchens, home improvement, garden retail, jewellery, dental, optical, agricultural equipment, power tools and other higher-value sectors.

So the sectors may differ considerably, but the commercial question is exactly the same: does the finance proposition support the way customers want to buy now?

Declines are a commercial signal

Declines are obviously treated as a negative and are usually viewed as the end of the finance journey, but can actually shed light on something you might not be aware of.

The decision to decline, in reality, may be the right outcome for the customer and the lender, but from a retail perspective, it’s important to understand what happens next and what action you may need to take.

• Does the customer abandon the purchase?

• Do they choose another payment option?

• Are they offered a different route?

• Does the business have permission and structure to introduce any alternative finance option?

• Does the retailer receive enough information from the provider to understand trends without stepping into areas it should not control?

So, this is not about pushing credit where it is not suitable. It’s really about understanding whether the current finance model is supporting customers and your business in the way it’s intended to do.

When one provider becomes a constraint

A provider-led finance model can be very useful, particularly where it gives retailers technology, customer messaging and a clear route to market.  But it’s important to understand that a finance provider is not necessarily the same thing as a finance strategy.

If you think you want greater lender choice, different finance products, more flexibility for higher-value purchases or better insight into customer outcomes, it may be that your current model may need reviewing.

If you decide to undertake a review, you should look at the full commercial picture and the regulatory structure together. Ask yourself the following questions:

• What can the business currently do?

• What sits with the lender or provider?

• What would change if you decided you wanted to offer additional products or work with another lender?

• Would the current AR, DA or permissions structure still fit?

How effective account management works

Good account management is not only about checking that the service is running. It is about staying close enough to identify when the original setup no longer matches the business’s changing needs.

And yes, I’ll say it again, to reiterate the point: it’s all about having a thorough ongoing review process. That might involve reviewing finance usage, provider performance, complaints trends, customer feedback, sales channels, new campaigns, lender audit requests, regulatory changes or planned growth.

For many clients, the real value they gain is in having someone who understands not just the regulatory structure but also the commercial reality of the business.

That is where account management becomes more than just relationship management. It becomes a vital part of the process to keep the finance proposition aligned with the firm’s direction and objectives.

How PPL can support

At Product Partnerships Ltd, we support firms before, during and after finance goes live.

That can involve providing Appointed Representative and Direct Authorisation routes, FCA application support, financial promotions review, complaints management, customer journey reviews, lender relationship support, training, point-of-sale finance systems and ongoing compliance support.

So in conclusion, for retailers, the objective should not be to add unnecessary complexity. The goal should always be to keep your finance proposition clear, commercially useful and suitable for the way your business is now operating. So, getting finance live matters; keeping it working matters too.