In LendPro, the traditional waterfall is a merchant setting; by default one application goes to multiple lenders at once. LendPro is not a lender; lenders make all credit decisions and set all terms.
Key takeaways
- A retailer-controlled waterfall is a financing waterfall whose lender order reflects the retailer's choices rather than a lender's, configured by LendPro for each location.
- In LendPro, the traditional waterfall of prime, then near prime, then No Credit Needed is a merchant setting, and by default one application reaches several lenders at once.
- The retailer chooses its lenders and routing setting, and LendPro configures the flow for each location.
- Retailers should review the Approval Rates report regularly and work with LendPro on lender mix for their ticket sizes.
Who controls the lender order?
Waterfall routing is a sequential application flow through configured lenders; the waterfall financing page explains how it works. This page is about whose choices set the order. In a retailer-controlled waterfall, the owner or finance manager chooses which lenders the store wants and their sequence, and LendPro configures the flow for each location. Changes are requested through LendPro and can be limited by lender agreements and program requirements.
In LendPro, the traditional waterfall is a setting the merchant chooses: prime first, then secondary (near prime) offers if prime declines, then No Credit Needed. Without it, LendPro sends one application to multiple lenders at once and shows pre-qualified offers side by side. Either way, the shopper can choose No Credit Needed at the start, which skips the primary lenders. Where the provider supports pre-qualification, it uses a soft pull and won't affect credit scores.
Who decides what in a retailer-controlled waterfall?
| Decision | Who controls it |
|---|---|
| Which lenders are in the lineup | The retailer chooses; LendPro configures each location |
| Waterfall on or off, and the order | The retailer chooses; LendPro configures each location |
| Changes to the configuration | Requested through LendPro; can be limited by lender agreements and program requirements |
| See If You Pre-Qualify or No Credit Needed | The shopper |
| A First Right of Refusal position | The retailer's agreement with that lender (See If You Pre-Qualify path with the traditional waterfall setting) |
| Credit decisions, amounts and terms | Each lender |
What should a retailer review with LendPro?
- Lender mix for your ticket sizes. Review with LendPro whether the lenders assigned to each location fit the purchases you sell, including lender minimums and approval amounts.
- Lease-to-own placement. In the traditional waterfall setting, keep lease options after loan options so qualified shoppers see loan offers first.
- Lender agreements. Some positions, such as First Right of Refusal on the See If You Pre-Qualify path with the traditional waterfall setting, come from the retailer's agreement with that lender and limit what can change.
- Results. Bring the Approval Rates report to the review so changes are based on your own data.
Lease-to-own is a rental-purchase agreement, not a loan, and the total cost is higher than the cash price.
We will walk through your lenders, tiers and entry points in a live demo.
What does it look like at the store?
An auto shop reviews its financing setup monthly.
- Its tickets range widely, from a $600 tire job to a $2,500 transmission job.
- The owner reads the Approval Rates report, comparing approval rates and average approval for each lender against those tickets.
- Where a lender often comes in short, the owner asks LendPro to review the lender mix and configuration for that location.
Illustrative example. Dollar amounts are for explanation only; actual approvals, amounts and terms are set by each lender.
How does LendPro handle it?
In LendPro, the retailer chooses which lenders it wants and its routing setting: several lenders at once by default, or the traditional waterfall of prime, then secondary (near prime), then No Credit Needed. LendPro uses a financing flow configured for each location based on the lenders assigned to that location and the requirements of those programs. Contact LendPro to review configuration changes.
The point of reviewing order is purchasing power: an approval only helps if it gives the customer enough to move forward with the purchase.
What should retailers watch when setting lender order?
- Lowest cost on top. Put lower-cost options above higher-cost ones so qualified shoppers see them.
- Short approvals. An approval below the ticket is a stalled sale; ask LendPro to review the lender mix where lenders consistently come in short.
- Too many steps. Every lender in the order should earn its place in the report.
- Stale order. Lender criteria change; check the Approval Rates report and ask LendPro to review an order that was set once and forgotten.
Bring your current lenders. We will show how LendPro would be configured for your stores.
Frequently asked questions
Who should set the lender order?
The retailer, because the retailer owns the customer relationship and the lender agreements. LendPro configures the flow for each location based on those choices.
Is the waterfall always on?
No. In LendPro the traditional waterfall is a merchant setting. By default, one application goes to multiple lenders at once and offers can show side by side.
How often should a retailer review the order?
Review it against your Approval Rates report regularly, such as monthly, and after any program change, and take proposed changes to LendPro.
Can different stores use different orders?
In LendPro, the flow is set up location by location, based on the lenders assigned to each one. Reporting by lender, store and associate shows where a review would help.
Does the platform choose which lender approves?
No. The retailer chooses its lineup and routing setting, LendPro configures the flow for each location, and each lender makes its own credit decision.
What is the risk of a vendor-controlled waterfall?
The vendor may order lenders by its own business terms instead of your customers' outcomes, and you may have little say in changing it.