Mattress store financing for retailers

Why are mattress sales decided in one visit?

A mattress shopper usually walks in ready to buy. They have a bad back, a new apartment or a bed that finally gave out. They lie on four or five models, find the one that feels right, and then look at the tag. That is the moment the sale is won or lost, and it often happens within one visit.

If financing comes up only after the shopper has mentally settled on a cheaper bed, it is too late to sell the one they liked best. If the first lender declines at the counter, the sale ends unless there is another option. A multi-lender setup gives the associate that next option from one application: offers from several providers can show side by side, or follow your order in the traditional waterfall setting.

How does financing help a mattress shopper trade up?

Trade-up is where mattress financing earns its keep. A shopper comparing a $1,100 bed and a $2,400 bed is really comparing two monthly payments. When the associate knows the shopper's pre-qualified amount, the conversation changes from "can you afford it" to "which one helps you sleep."

• Show the payment on the tag. Put monthly payment messaging on product pages and price tags, using the lender's approved language.
• Sell the full sleep set. Adjustable base, pillows, protector and foundation can be added while the pre-qualified amount has room.
• Add protection at the same checkout. Mulberry offers product protection alongside LendPro financing where the retailer offers it.

Illustrative example: a shopper pre-qualifies for up to $3,000 on a tablet, subject to the lender's final approval. The bed they like is $2,400 and the adjustable base is $500. The associate can present both inside the pre-qualified amount, and the lender's final approval comes after the shopper completes the full application. Amounts are set by each lender.

What lender tiers fit a mattress store?

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.

Mattress tickets range from a few hundred dollars for a guest bed to several thousand for a premium set with an adjustable base, and each lender sets its own limits. 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.

Kiosks, tablets and online pre-qualification

Mattress stores are often small, and a single associate may be with two or three shoppers at once. Entry points shoppers can use on their own keep financing moving when the associate is busy.

• In-store kiosk or tablet. The shopper chooses See If You Pre-Qualify or No Credit Needed while resting on the bed. See kiosks and devices.
• QR code on the tag. The shopper scans and applies on their own phone, privately.
• Product pages and cart. Online shoppers pre-qualify before they visit, so they arrive knowing their budget. See embedded pre-qualification.
• Text link. For the shopper who leaves to "think about it," the associate texts a link to apply from home.

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.

Can mattress shoppers start online and buy in the showroom?

Many mattress shoppers research online for days, then buy in a showroom where they can lie down. Embedded pre-qualification connects the two. A shopper checks buying power on the product page at home and arrives knowing what they can spend, so the associate starts the conversation at the right price point instead of the lowest one.

Shoppers can start on your website from a banner, QR code or text link. LendPro also helps add a See If You Pre-Qualify button and "as low as" payment estimates to your mattress product pages at no additional cost. Payment estimates are examples only; lenders set APR, term and payment based on approval. See AEO financing pages and product-page financing. When they come in, the store can use Lookup Application to find the application they already started instead of asking them to begin again. 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.

A shopper who pre-qualifies online but never visits is still a warm lead. LendPro can re-engage pre-qualified shoppers on behalf of the store that created the lead through SPLICE Software Data-Driven Dialogs (text, chat, call, email, voice). This outreach happens with the shopper's consent; shoppers can opt out at any time (reply STOP to texts).

Sales events and promotional financing

Mattress retail runs on events: Presidents Day, Memorial Day, the Fourth of July, Labor Day and Black Friday. Traffic spikes, associates are stretched, and shoppers compare stores on price and payment at the same time. Get the financing setup right before the event, not during it.

• Confirm promotional plans with your prime lender. Special-rate or deferred-interest periods are lender programs. The lender sets the terms, qualification and any merchant fee, and promotional plans usually cost the retailer more than standard terms.
• Get event ad wording from the lender. A "Memorial Day: beds from $39 a month" banner is a payment ad, and payment ads can require federal Truth in Lending disclosures. Lenders set promotional terms and required disclosures.
• Explain deferred interest plainly. If a promotion is deferred interest, the shopper should understand what happens if the balance is not paid by the end of the promotional period.
• Review your lender mix. Event pricing changes the ticket mix. Ask LendPro to review whether your lender lineup still fits the tickets you expect.
• Test kiosks, tablets and QR codes before the doors open. They let shoppers apply while associates are with other customers.
• Follow up after the event. With their consent, shoppers who pre-qualified but did not buy can get a text link to finish later; they can opt out at any time.

How does a mattress financing sale work?

1. Greet and offer early. "While you try beds, you can check what you pre-qualify for on this tablet."
2. The shopper picks a path. See If You Pre-Qualify, or No Credit Needed when the store offers it, which skips the primary lenders and goes straight to no credit needed providers.
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. Present the bed inside the pre-qualified amount. "You pre-qualified for up to $3,000, subject to the lender's final approval." Show the bed and sleep set that fit, not the cheapest bed in the room.
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 a hard inquiry may happen at this step.
6. The associate finalizes the sale in LendPro. Create the invoice and send it for e-signature, in store or by text or email link.
7. Settlement is processed on delivery. Settlement is processed in LendPro when the customer receives the goods or service, so a bed delivered next Tuesday settles next Tuesday.

Mattress retailers on STORIS can use LendPro 2.0 in STORIS: associates apply, finalize, transact and process returns and exchanges, including comfort exchanges, in one LendPro portal instead of each lender's portal. Cancel and refund are available for most lenders in the network; a few providers still require the provider's portal for cancellations and refunds. LendPro for STORIS.

What should a mattress store measure?

• Application rate per shopper. Compare Daily Applications by location and associate with your door count. If your own calculation comes out low, financing is coming up too late in the visit.
• Approval rates by lender. The Approval Rates report shows pre-qual and full-app approval rates side by side, so you can see whether the near prime position is catching prime declines.
• Average financed ticket versus non-financed. Export to CSV and compare with your POS data. Your own analysis is the clearest read on trade-up.
• Attachment on financed sales. Bases, protectors and protection plans added inside the pre-qualified amount, from your POS.
• Results by associate. Sales Performance shows results by store, associate and customer when Employee Tracking is on.

What mistakes do mattress retailers make with financing?

• Selling price before payment. The shopper anchors on the cheapest bed before financing comes up.
• One lender only. A single decline ends the sale in a one-visit category.
• No near prime tier ahead of No Credit Needed. In the waterfall setting, shoppers who could qualify for an installment loan end up in a costlier agreement.
• No follow-up for walk-outs. A text link lets the shopper finish from home and come back with an answer.
• Calling a pre-qualified amount an approval. Say "you pre-qualified for up to," then let the lender's full application decide.

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