UK businesses could be losing out on over £25 billion in potential sales by not offering a range of consumer finance options, according to new research.
The findings were published in a report by lending platform, Duologi, which looked at the consumer credit market and attitudes towards point-of-sale (POS) finance.
Finding the Right Balance: the future of retail revealed more than three-quarters (78%) of consumers would consider purchasing through POS finance in the future – around 39million UK adults.
Of these, the average amount each would be willing to borrow is £620, representing a potential £25 billion sales opportunity for merchants that implement this type of payment.
And a further 26% of people would be likely to spend more than originally planned if they found they could access credit from a merchant.
Over a third (34%) of people said they would be more likely to spend with a business that offers POS finance options, with 20% saying if a company didn’t offer flexible finance options, they would be more likely to go elsewhere.
The report also found POS finance could breed loyalty, with more than a quarter (28%) of people saying they would be more likely to return to a merchant that allowed them to borrow funds in this way.
Co-CEO of Duologi Gary Little, commented: “Consumers are now more willing and able to borrow funds than ever before and as such, are demanding increasingly competitive credit options from lenders.
“There is clearly an enormous opportunity available for UK businesses to drastically boost bottom lines; one which many may not even realise they are missing out on,.”
Find out more about the advantages of offering POS finance for kitchens and bathroom showrooms.