Customer Financing In The Current Macroeconomic Climate And The Steps Businesses Can Take To Offset The Decrease In Approval And Funded Loan Rates


It can’t be ignored that lenders and creditors are tightening access to credit. 


Changing underwriting criteria’s are resulting in a decrease in approval and funding rates and increasing APRs. People on the credit margins are being most impacted but so are consumers with higher credit scores, but on the decline.

The conditions that are causing these shifts are also altering the way consumers do business. Higher living costs and more uncertainty are resulting in a higher demand for compartmentalizing major transactions of $1,000 and up. In other words, the demand for customer financing is still strong and will likely increase in the immediate future. 

Is it all bad news for businesses? Not necessarily and for some savvy business owners and managers, these conditions are ripe for growth.

Many businesses have either resisted offering a financing option or are unaware they can. These businesses can realize an instant infusion of new sales or salvation of lost sales by just offering a buy now, pay later option. The introduction of financing through a “Financing Available” mention on their website and marketing outreach will attract consumers that are aware that financing is their only path to product or service they desire. And making it available in the sales ecosystem will resurrect a sale on the brink of being lost.

Some businesses have one or two customer financing options and think they have things covered. 

Well, in a tightening lender environment, the more options the better. A multi-lender platform that delivers one application to multiple lenders is a great way to go. 

Lender underwriting is not cut and dry. An application can be sent to two lenders that claim to have the same appetite for approvals, but one will approve the application and the other will decline it. Each lender’s underwriting algorithm is different, plus, lenders will go hot and cold at any given moment based on external and internal conditions.  

More lenders mean more opportunities for approval. That’s why we have approximately 30 lenders and providers in our platform ready to be implemented.


When times are tough, creativity rules the day. For businesses that sell what’s considered a high ticket product or service, getting a prospect excited is often only the first required step. The business must create that financial bridge to the sale to thrive. 

During a tighter economy, consumers are less likely to drain their own resources. Utilizing third party financing could be the only path to the finish line. 

But, what do you do if the financing is declined or insufficient to complete the sale?

For businesses that sell high profit margin products or services, guaranteed financing or payment plan solutions can be the answer. 


When third party lending is tight and application declines are more prevalent, creative financing solutions may be the only path to a sale.

Of course, there is no free lunch. These options come with their own set of risks. And because less money is being realized at the time of sale, adjustments may be required to satisfy the sales channel. 

But, for most business models, a lesser part of the pie is better than no pie at all and most sales professionals would rather have something for their efforts at the end of a sale cycle. It all comes down to creating a revenue model that makes sense across the board.

 I’ll leave you with this. 

Successful businesses always have their finger on the pulse. Changing conditions outside the business could impact the direction your business must takes to survive and thrive. 

There’s no doubt that economic conditions are shifting. This could be the beginning of a recession or conditions could normalize. Aligning your strategies based on a worst case scenario will protect the business against shifting winds. From where I stand, arming your sales and marketing team with a number of buy now, pay later alternatives will maximize your revenue potential. 

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