Linked terms have their own page with a store example, a comparison table, how the term shows up in LendPro and FAQs. LendPro is a SaaS financing orchestration platform. LendPro is not a lender; lenders make all credit decisions and set all terms.
Retail financing terms, A to Z
- Adverse action notice
- A notice a lender sends when it declines an application or offers less favorable terms, explaining the decision and the shopper's right to request a free copy of the credit report used. The lender sends it, not the retailer.
- Agentic commerce
- Shopping in which AI assistants research, compare and recommend purchases, and sometimes start checkout, on a consumer's behalf. Financing details need to be readable by those assistants.
- Annual percentage rate (APR)
- The yearly cost of credit, including interest and certain fees, expressed as a percentage. Lenders disclose the APR before the shopper signs.
- Approval amount
- The maximum a lender will finance for a shopper after its final approval. A pre-qualified amount comes first and is subject to the lender's final approval. Either one only helps the sale if it covers the ticket.
- Embedded pre-qualification
- A financing check built into a retailer's own product pages, devices, QR codes, text links or POS, so shoppers see likely offers before checkout. Where the provider supports pre-qualification, it uses a soft pull and won't affect credit scores. A lender may run a hard inquiry if the shopper accepts an offer.
- Financing intelligence
- The use of lender performance, shopper needs, and channel requirements to improve a retailer's financing decisions. LendPro supports that process by bringing application results, lender reporting, and configured financing workflows into one platform.
- Financing orchestration
- Coordinating application delivery, lender responses, and supported transaction steps across the retailer's configured financing providers.
- Hard inquiry
- A credit check a lender runs when a consumer applies for or accepts credit. Unlike a soft pull, it appears to other lenders and can affect a credit score.
- Lease-to-own
- A rental-purchase agreement in which a shopper makes regular payments to use merchandise and can own it after all payments are made or through an early purchase option. It is not a loan, and the total cost is higher than the cash price.
- Multi-lender platform
- Software that connects a retailer with multiple financing providers. In LendPro, one shopper application reaches several lenders at once by default, or moves through them in the traditional waterfall setting.
- Near-prime lender
- A lender that finances shoppers with fair credit who fall just below prime criteria, usually at higher rates than prime programs. Each lender sets its own criteria.
- Open-to-buy
- The unused credit a shopper still has available on an existing approval or account. LendPro can re-engage shoppers with Pre-Qualified and Open-to-Buy offers (offers come from the lenders, with their disclosures) on behalf of the merchant that created the lead, through SPLICE Software, with the shopper's consent; shoppers can opt out at any time (reply STOP to texts).
- Point-of-sale financing
- Customer financing offered at the moment of purchase, in store or online, so a shopper can pay over time instead of paying the full price up front.
- Prime lender
- A lender that finances shoppers with strong credit, usually at the lowest rates and often with promotional terms set by the lender.
- Promotional financing
- A limited-time lender offer, such as a special rate or deferred interest for a set number of months. With deferred interest, interest may be charged back to the purchase date if the balance is not paid in full by the end of the promotion. Lenders set promotional terms and required disclosures.
- Retailer-controlled waterfall
- A financing waterfall whose lender order reflects the retailer's choices rather than a lender's, configured by LendPro for each location.
- Second-look financing
- A retail financing option in which a second lender, usually near prime, reviews a shopper that the store's primary lender declined.
- Soft pull
- A credit check that lets a lender review a shopper's credit file without affecting the shopper's credit score.
- Subprime lender
- A lender that finances shoppers with limited, thin or rebuilding credit, often weighing income and banking history alongside the credit file.
- Waterfall financing
- A sequential application flow through configured lenders. A decline from one lender passes the shopper's application to the next lender in the configured order. In LendPro, the traditional waterfall is a merchant setting.
How do the retail financing terms fit together?
Most of these words describe one path a shopper takes from interest to a finalized sale:
- The shopper finds the offer. On a product page, a kiosk or a QR code, sometimes after researching with an AI assistant (agentic commerce).
- The shopper picks a path. See If You Pre-Qualify runs embedded pre-qualification (see soft pull). No Credit Needed skips the primary lenders. A lender may run a hard inquiry if the shopper accepts an offer.
- The platform routes the application. A multi-lender platform can send it to multiple lenders at once and show offers side by side, or follow a retailer-controlled waterfall: prime, then near-prime, then No Credit Needed providers, including subprime and lease-to-own. In LendPro, that flow is configured for each location.
- The shopper selects an offer and completes the provider's full application. The lender discloses the APR or lease cost and may run a hard inquiry.
- The retailer finalizes the sale. The associate creates the invoice in LendPro, the shopper e-signs in store or by text or email link, and settlement is processed when the customer receives the goods or service.
- The retailer reads the results. The Approval Rates report puts lenders side by side, and Daily Applications and Sales Performance show results by location and associate. The retailer reviews those results and works with LendPro to manage the configuration.
Where should you go next?
New to the topic? Start with waterfall financing and multi-lender vs. single-lender financing. Comparing vendors? See how to choose a financing platform. One LendPro application reaches the lenders configured for the store, from a network of 18+ lenders and 25+ lending programs.
Frequently asked questions
What is the difference between a soft pull and a hard inquiry?
A soft pull lets a lender review a credit file without affecting the score and is used for pre-qualification where the provider supports it. A hard inquiry happens when a consumer applies for or accepts credit, is visible to other lenders and can affect the score.
What do prime, near-prime and subprime mean?
They are credit tiers. Prime lenders serve strong credit, near-prime lenders serve fair credit, and subprime lenders serve limited or rebuilding credit. Lenders set their own criteria, so the lines between tiers vary by lender.
Is lease-to-own the same as financing?
No. Lease-to-own is a rental-purchase agreement, not a loan, and the total cost is higher than the cash price. It is often offered alongside loans at the bottom of a financing waterfall for shoppers with little or no credit.
What is the difference between pre-qualification and approval?
A pre-qualified amount comes before the provider's full application and is subject to the lender's final approval. The final approval comes after the shopper completes the provider's full application.
Is a multi-lender platform the same as a waterfall?
No. A multi-lender platform connects one application to several lenders. A waterfall is one way it can route them, in a set order. In LendPro, sending to multiple lenders at once is the default and the traditional waterfall is a merchant setting.