POS financing covers several products, from promotional cards to lease-to-own. LendPro is not a lender; lenders make all credit decisions and set all terms.
Key takeaways
- Point-of-sale financing is customer financing offered at the moment of purchase, in store or online, so a shopper can pay over time.
- POS financing includes installment loans, promotional financing, store cards, pay in 4 and lease-to-own.
- The retailer is paid by the lender or lease provider, and in LendPro settlement is processed when the customer receives the goods or service.
- Online and in-store lender availability, application requirements and results may differ, so financing is configured for each sales channel.
Where is the point of sale in retail?
In retail, the "point of sale" is wherever the buying decision happens. For a furniture or appliance store, a jeweler or a tire shop, that means:
- Product pages and cart. Shoppers check buying power before they visit.
- Kiosks and tablets. Shoppers apply on the floor while an associate helps someone else.
- QR codes on tags and cases. Shoppers apply privately on their own phone.
- Text links. For the customer in the lobby or the shopper who went home to think.
- The POS. The associate launches a hosted application from the register.
The retailer is paid by the lender or lease provider, and settlement is processed when the customer receives the goods or service. The shopper repays the lender or makes lease payments to the lease-to-own provider.
What types of POS financing are there?
| Type | How it works | Typical fit |
|---|---|---|
| Installment loan | Fixed payments over a set term | Furniture, appliances, repairs |
| Promotional financing | Promotional terms set by the lender, such as a special rate or deferred interest | Prime shoppers, larger tickets |
| Private label credit card | Store-branded revolving card | Repeat buyers |
| Pay in 4 | Short split payments | Smaller tickets |
| Lease-to-own | Rental-purchase agreement | Limited or no credit |
Lease-to-own is a rental-purchase agreement, not a loan, and the total cost is higher than the cash price. Lenders set promotional terms and required disclosures.
What does it look like at the store?
A shopper at a jewelry store is choosing a $2,800 ring.
- The associate shows a QR code at the case.
- The shopper chooses See If You Pre-Qualify on their phone. 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.
- Offers show a monthly payment. The shopper selects one and completes that provider's full application.
- The jeweler 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. For a ring being sized, that is when the shopper picks it up.
Illustrative example. Dollar amounts are for explanation only; actual approvals, amounts and terms are set by each lender.
We will walk through your lenders, tiers and entry points in a live demo.
How does LendPro handle it?
LendPro brings POS financing to product pages and cart, in-store kiosks and tablets, QR codes, text links and a hosted application launched from the POS, with one application reaching the lenders configured for the store, from LendPro's network of 18+ lenders and 25+ lending programs. By default, offers from several providers can show side by side; retailers can choose the traditional waterfall setting instead, and LendPro configures the flow for each location. Configure financing for each sales channel. Online and in-store lender availability, application requirements, and results may differ. LendPro works with the retailer to establish the appropriate configuration for each channel. It runs inside STORIS and behind 1stMILE for auto service.
What should retailers watch with POS financing?
- Offer it early. Financing shown only at the register misses shoppers who walked away at the price tag.
- One lender is a single point of failure. Pair it with a waterfall.
- Train the words. Associates should state the monthly payment, the term and who the lender is, and never promise approval.
- Measure by store and associate. The Sales Performance report shows results by store and associate when Employee Tracking is on.
- Plan for settlement. On special orders and deliveries, cash arrives when the customer receives the goods, not at the sale.
Frequently asked questions
Is POS financing the same as buy now, pay later?
Pay-in-4 BNPL is one type of POS financing. POS financing also includes installment loans, promotional plans, store cards and lease-to-own.
Who pays the retailer?
The lender or lease provider funds the purchase under its agreement with the retailer, and in LendPro settlement is processed when the customer receives the goods or service. The shopper repays the lender or makes lease payments to the lease-to-own provider.
Does checking POS financing hurt credit?
Not at pre-qualification. 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.
How long does it take to add?
LendPro's go-live SLA is 10 business days. Timing depends on lender activation and integration scope, and custom integrations take longer. LendPro confirms the start date and prerequisites during onboarding.
What is the difference between POS financing and a store credit card?
A store credit card is one type of POS financing: a revolving account the shopper can reuse. Installment loans and lease-to-own cover one purchase at a time. Lease-to-own is a rental-purchase agreement, not a loan, and the total cost is higher than the cash price.