Jewelry store financing

Why does point of sale financing matter for jewelers?

Jewelry is a considered purchase with a deadline. An engagement ring is bought for a proposal date. An anniversary piece is bought for a dinner reservation. A holiday gift is bought before December 25. The shopper has a number in mind, and usually it is a monthly number, not a total.

When financing shows up early, the shopper looks at the stones and settings that fit their real budget. When it shows up late, or when one lender declines, the shopper either settles or leaves to "think about it." One application that reaches several lenders gives the jeweler a second and third option: offers can show side by side, or in the store's waterfall order if that setting is on. If a lender declines, the application is routed to another applicable lender, if one is available.

How should jewelers finance engagement rings?

Engagement ring buyers are often younger shoppers making their largest jewelry purchase so far. Many have a short credit history. That is exactly where a one-lender program falls short: a thin credit file can mean a decline even for a shopper with steady income.

• Pre-qualify before the design appointment. A shopper who knows their pre-qualified amount can design to it, including the center stone and setting upgrade.
• Keep near prime ahead of lease-to-own. In the waterfall setting, shoppers who can qualify for an installment loan should see one first.
• Plan for wedding bands. If the pre-qualified amount has room, the bands can be added in the same visit.
• Plan around the bench. A custom setting can take weeks. Ask each lender how long its offer or approval holds for custom pieces, and remember settlement is processed in LendPro when the customer receives the piece.

Lease-to-own is a rental-purchase agreement, not a loan. Total cost is higher than the cash price.

Privacy at the counter

Money talk at a jewelry counter is awkward, especially when the shopper is with a partner, a parent or the person the gift is for. Good financing setup keeps it private.

• Own phone, own screen. A QR code on the case or a text link lets the shopper apply on their own phone instead of reading details aloud.
• Before the visit. Pre-qualification on product pages lets the shopper check buying power at home. See embedded pre-qualification.
• Discreet results. Offers appear on screen, so the associate can present options without announcing amounts.
• Secure handling. LendPro holds a SOC 2 report, and data is encrypted in transit. Application data is shared with the lenders reviewing the application and with service providers that process it under LendPro's privacy notice. Qualified prospects can request LendPro's security documentation through their LendPro representative. See security.

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.

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.

"The LendPro system has been a great asset to our store. It is very client friendly and makes my job so much faster, not to mention we have gotten so many approvals!"Adara Statewright, ICEBOX Diamonds and Watches

What ticket sizes and lender tiers fit a jeweler?

Jewelry tickets range widely: a few hundred dollars for a gift, a few thousand for a bridal set, and much more for a high-carat stone or luxury watch. Each lender sets its own limits, so review your lender mix for those ticket sizes with LendPro. 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.

LendPro's network spans 18+ lenders and 25+ lending programs; see how the tiers work in waterfall financing, and ask for the current lender lineup for your state during a demo. Lease-to-own is a rental-purchase agreement, not a loan. Total cost is higher than the cash price. Each lender sets its own approval criteria and terms. Availability varies by retailer, state and purchase. Lenders set promotional terms and required disclosures.

Lender financing versus in-house plans and layaway

Many independent jewelers have run in-house payment plans or layaway for years. Both still have a place, but they put the credit decision, the collections work and the cash timing on the store. Lender financing moves those to the lender.

Some jewelers keep layaway for shoppers who prefer it and offer lender financing alongside it. The shopper chooses.

How does a jewelry financing sale work?

1. Offer financing early. "Many of our clients check what they pre-qualify for before we design."
2. The shopper applies privately. From a QR code at the case, a text link or a product page, the shopper chooses See If You Pre-Qualify, or No Credit Needed when the store offers it, on their own phone.
3. Pre-qualified offers appear. Side by side when several providers pre-qualify the shopper, or in your order if the traditional waterfall setting is on. If a lender declines, the application is routed to another applicable lender, if one is available.
4. The associate presents pieces inside the pre-qualified amount. Center stone, setting and bands that fit the number, subject to the lender's final approval.
5. The shopper selects an offer and completes the provider's full application. Employment, debit card and/or bank details may be required. The shopper agrees to the provider's terms and submits, and the lender may run a hard inquiry.
6. The associate finalizes the sale in LendPro. Invoice and e-sign, at the case or by a text or email link the shopper opens privately.
7. Settlement is processed at pickup or delivery. Settlement is processed in LendPro when the customer receives the goods or service, which for a custom ring means when the shopper collects it.

What should a jeweler measure?

• Application rate on bridal appointments. Match Daily Applications by associate against your appointment book. These are the highest-value financing conversations in the store.
• Approval rates by lender. The Approval Rates report shows whether near prime is catching thin-file bridal shoppers.
• Average financed ticket versus cash. Export to CSV and compare with your POS. Your own analysis shows whether financing moves shoppers to the piece they wanted.
• Seasonal application volume. Valentine's Day, Mother's Day and the holidays should show up in Daily Applications.
• Results by associate. Sales Performance shows who offers early and who waits to be asked, when Employee Tracking is on.

What mistakes do jewelers make with financing?

• Waiting until the shopper picks a stone. By then they have chosen based on cash, not payment.
• Asking credit questions out loud. Use QR codes and text links so the shopper applies on their own screen.
• One prime lender only. Thin-file bridal buyers get declined with nowhere to go.
• Launching right before the holidays. Go live, train associates and test the flow well ahead of peak season. 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.
• Holiday ads without lender language. A "rings from $50 a month" line in a December email is a payment ad and can trigger disclosure requirements. Use the lender's approved wording.
• Treating a pre-qualified shopper who leaves as a lost sale. LendPro notifies the store when a customer applies, and for 30 days after pre-qualification its marketing tools help pre-qualified shoppers return to complete the lender's full application; the lender makes the final decision. This outreach happens with the shopper's consent; shoppers can opt out at any time (reply STOP to texts). See store alerts and follow-up marketing.

Read how to choose a financing platform, or book a live demo.