Finding the value in extended financing

Shoppers like the convenience and flexibility that come with long-term financing, and the HFA has a program that fits your store’s needs.

Let’s face it: If selling furniture was easy, everyone would be doing it. The fact is there are many obstacles a retailer needs to clear before writing up a sale. If you’ve been savvy enough in your marketing and advertising to get them into your store, you’re only halfway through. You need to navigate the consumer past all the other obstacles: the right selection, the quality they’re looking for, fast and easy delivery options, and, of course, price—all while keeping them off their phone looking for something online.

And then there’s the matter of affordability. Not every consumer can or is willing to make one large payment on that bedroom suite. That’s where the Home Furnishings Association can help. We’ve spent years building relationships with some of the nation’s premier finance companies, relationships that you can benefit from.

In-store financing is one of the most important tools in your sales staff’s toolbox. The right financing for the right consumer can be a tremendous value not just for her, but also your store. Countless studies show that when shoppers receive the extra spending power and time to pay off their purchase, retailers enjoy incremental traffic and spend as well as an increase in customer loyalty and market share.

One Synchrony Financial study shows that consumers who made a purchase of at least $500 spent on average 35 percent more than other shoppers who did not use financing. That’s a win-win for you and your new customer.

There are as many different customers out there as there are sofas. That’s why the HFA offers four financing programs—Synchrony, Tidewater Finance Company, Acima Credit and Versatile Credit—catered to the unique needs of your customers.

Synchrony Financial offers a range of financing options that fit your customers’ budgets and needs, giving them the power to purchase the furnishings they desire. Tidewater Finance helps credit-challenged consumers establish positive credit and payment history while they enjoy the new furnishings. Acima Credit makes it possible for you to offer customers a no-credit-needed finance option at the point-of-sale. Versatile Credit is a waterfall program offering retailers self-service kiosks or tablets that allow customers to privately complete the application process. Declined applications can cascade to secondary and no-credit options.

According to studies, in-store financing can lead to:

Customers purchasing in more categories. Shoppers with their new-found spending power are more likely to make additional purchases. In other words, the recent college graduate who came into the store looking for a new sofa may choose to add the coffee table to their purchase now that financing has made the purchase more convenient.
Product upsell. Customers might be more likely to purchase a higher ticket item as their perception of what they can afford changes since they can now pay monthly instead of one large sum.

Repeat sales. Customers are more likely to return to your store for a second or third purchase. Giving shoppers the ability to better manage their purchase with monthly payments helps drive higher satisfaction with their shopping experience. The next time your customer is in the market for furniture, who do you think she will turn to—a store she’s unfamiliar with or one she already has a personal and financial relationship with?

If your store isn’t taking advantage of this powerful benefit, find out how we can help you increase traffic to your store, sell more and build a new, loyal customer base.
For more information please email our membership team at

Buydowns equal more savings

Promotional financing for furniture retailers makes even more sense when you factor in the HFA’s exclusive Synchrony buydowns.

We take your everyday low rates and lower them even further for a certain period of time. These buydowns usually coincide with major holidays (Labor Day, Black Friday, etc.) when your store will likely be offering a special sale or promotion. We often discount our longer-term financing during these periods, which is what many consumers are looking for. Synchrony also offers additional buydowns for select bedding manufacturers for those members on our Buying Source Program.

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