Simple Retail Financing with End-to-End Loan Origination and Management

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Why Auto Dealers Should Consider Digitizing Their In-House Lending Programs

There are numerous incentives for retailers and other businesses to offer point-of-sale financing. That’s true whether the “point” in question is a cash register, an online portal, or a mobile device. Traditionally, however, barriers to putting simple financing options at your fingertips have seemed insurmountable.

Here we’ll consider how that has changed as barriers to providing in-house lending have dropped, and what that could mean for your business — whether your choice going forward is to do it alone with a strong technology partner, or to outsource the lending piece to a dedicated lender, perhaps a bank or credit union (who will keep a bigger part of your interest).

Provide fast financing, sell more stuff

Fast in-house financing is a boon to any business’s retail operations. It helps them capture sales in cases where buyers wish to spread payments out over time. Saying “yes” to point-of-sale lending means converting leads into sales more frequently, especially for big- and medium-ticket items. It also builds client loyalty, and adds an attractive revenue stream through lending fees.

Geraldine Kilkelly, Head of Research and Chief Economist at the Finance and Leasing Association, comments: “The latest figures show the underlying strength of the consumer car finance and retail store and online credit sectors despite the disruption caused by the Covid-19 crisis.”

In-house borrowers buy almost 70% more in terms of value than non-borrowers. And those who have previously financed a purchase are 20% more likely to make additional purchases within 30 days, according to the same source, an installment lender. A similar company says its retail partners get an 87% boost in order value, and an average “net promoter” score of 83 out of 100 — high on a scale that rates a score of 0 as “good” and 50 as “excellent.”

And in-house financing isn’t just for “retailers” in the traditional business-to-consumer sense.

For business-to-business suppliers, and specialist product and service providers, so-called fast financing is a way to boost income and gain improved standing with consumers. Examples include medical practices (patient financing), real-estate companies (property financing, rent-to-own; even downpayment and rental-deposit financing), capital-equipment providers (lease to own), and insurance providers and agents (premium financing).

“In all cases, consumers and institutional customers benefit when retailers provide purchase financing,” according to Dmitry Voronenko, co-founder and CEO lending-software maker TurnKey lender. “Crucially amid a pandemic-induced recession, point-of-sale loans can empower customers to exercise more control over cash flow while still meeting immediate needs and taking advantage of growth opportunities.”

Businesses that already finance their clients with TurnKey Lender

TurnKey Lender offers retailers an intelligent cloud-based solution for end-to-end financing automation with bank-grade credit decisioning precision. From application processing, borrower evaluation, risk assessment, underwriting, origination, collection, reporting, vendors’ management, and more realized in an intuitive SaaS solution. Here are the stories of some of our customers who have successfully implemented in-house financing with TurnKey Lender into their operations.

The newly released TurnKey Lender Retail Solution allows anyone to provide instant financing to customers to quickly grow new business. With an intuitive user interface and a proprietary AI-powered Decision Engine, you get the lowest possible credit risks with the biggest potential growth spread.

The cloud-based platform incorporates retailers’ order processing automation, flexible business logic, and customer portal in a single, integrated solution. The entire financing process is 100% automated.

Running a digital-lending platform in-house

While banks and tech-enabled lenders that specialize in purchase loans have historically dominated the retail lending landscape, the rapid development in lending-tech in recent years has changed that equation. Now, virtually any business that takes payments can own their lending operations while outsourcing only the technology and upkeep.

With help from a specialist technology provider in tune with the needs of retailers and other businesses, merchants in search of lending capabilities can provide point-of-purchase lending themselves, all in their own right, without sharing fees or any of the revenue tech-enabled revenue.

To get started, it helps to realize that, although issuing installment credit can seem complex and stressful to many retailers, engaging a specialist technology provider, preferably one versed in the needs of retailers, can get you there quickly, and in the long run less expensively, than other alternatives. This approach also:

  • Provides streamlined automation that cuts operational costs and increases overall returns using white-label technology backed by 24/7 support and consultation
  • Minimizes credit risks by means of artificial intelligence directed by machine-learning algorithms
  • Sharply reduces human error with AI-powered workflows and intuitive interfaces

“Another advantage of a tech-assisted, in-house lending comes in the form of constant improvement,” adds Voronenko. “For a software-as-a-service provider like TurnKey Lender, staying at the forefront with updates is crucial, so that the technology never acts, looks, or feels outdated.”

A new wrinkle on digital lending powers best-of-breed functionality

In fact, a recent innovation at TurnKey Lender underlines its strengths as a leading lending-tech provider — one that leads to another choice for businesses in search of point-of-sale lending capabilities. The technology company recently added functionality to our credit-management suite so companies that lend through multiple retailers — community banks, for example, or credit unions — can manage these complex and sometimes far-flung relationships with precision and flexibility.

This provides a new wrinkle on traditional bank-backed retail lending. Banks that use TurnKey Lender technology to run multi-client lending complexes provide state-of-the-art, full life-cycle, lending services that are as comprehensive and yet still as nuanced as their clients demand.

“In this configuration, any business can sign-up on a TurnKey Lender-enabled, bank- or credit-union sponsored lending platform, and outsource crediting to the institution in question,” says Voronenko. “A business that extends credit through a lender using our technology can simply create new loan applications as the need arises using their TurnKey Lender Vendor Portal.”

This effectively lowers a significant barrier to smaller retailers entering the lending space by unifying and rationalizing all functionalities required to run fast-financing programs in the hands of a third-party outsourcer equipped with an easy-to-use SaaS powered by the latest artificial intelligence.

Embedded in-house financing with TurnKey Lender

Schedule a personalized demo of TurnKey Lender Retail here.

Share:

There are numerous incentives for retailers and other businesses to offer point-of-sale financing. That’s true whether the “point” in question is a cash register, an online portal, or a mobile device. Traditionally, however, barriers to putting simple financing options at your fingertips have seemed insurmountable.

Here we’ll consider how that has changed as barriers to providing in-house lending have dropped, and what that could mean for your business — whether your choice going forward is to do it alone with a strong technology partner, or to outsource the lending piece to a dedicated lender, perhaps a bank or credit union (who will keep a bigger part of your interest).

Provide fast financing, sell more stuff

Fast in-house financing is a boon to any business’s retail operations. It helps them capture sales in cases where buyers wish to spread payments out over time. Saying “yes” to point-of-sale lending means converting leads into sales more frequently, especially for big- and medium-ticket items. It also builds client loyalty, and adds an attractive revenue stream through lending fees.

Geraldine Kilkelly, Head of Research and Chief Economist at the Finance and Leasing Association, comments: “The latest figures show the underlying strength of the consumer car finance and retail store and online credit sectors despite the disruption caused by the Covid-19 crisis.”

In-house borrowers buy almost 70% more in terms of value than non-borrowers. And those who have previously financed a purchase are 20% more likely to make additional purchases within 30 days, according to the same source, an installment lender. A similar company says its retail partners get an 87% boost in order value, and an average “net promoter” score of 83 out of 100 — high on a scale that rates a score of 0 as “good” and 50 as “excellent.”

And in-house financing isn’t just for “retailers” in the traditional business-to-consumer sense.

For business-to-business suppliers, and specialist product and service providers, so-called fast financing is a way to boost income and gain improved standing with consumers. Examples include medical practices (patient financing), real-estate companies (property financing, rent-to-own; even downpayment and rental-deposit financing), capital-equipment providers (lease to own), and insurance providers and agents (premium financing).

“In all cases, consumers and institutional customers benefit when retailers provide purchase financing,” according to Dmitry Voronenko, co-founder and CEO lending-software maker TurnKey lender. “Crucially amid a pandemic-induced recession, point-of-sale loans can empower customers to exercise more control over cash flow while still meeting immediate needs and taking advantage of growth opportunities.”

Businesses that already finance their clients with TurnKey Lender

TurnKey Lender offers retailers an intelligent cloud-based solution for end-to-end financing automation with bank-grade credit decisioning precision. From application processing, borrower evaluation, risk assessment, underwriting, origination, collection, reporting, vendors’ management, and more realized in an intuitive SaaS solution. Here are the stories of some of our customers who have successfully implemented in-house financing with TurnKey Lender into their operations.

The newly released TurnKey Lender Retail Solution allows anyone to provide instant financing to customers to quickly grow new business. With an intuitive user interface and a proprietary AI-powered Decision Engine, you get the lowest possible credit risks with the biggest potential growth spread.

The cloud-based platform incorporates retailers’ order processing automation, flexible business logic, and customer portal in a single, integrated solution. The entire financing process is 100% automated.

Running a digital-lending platform in-house

While banks and tech-enabled lenders that specialize in purchase loans have historically dominated the retail lending landscape, the rapid development in lending-tech in recent years has changed that equation. Now, virtually any business that takes payments can own their lending operations while outsourcing only the technology and upkeep.

With help from a specialist technology provider in tune with the needs of retailers and other businesses, merchants in search of lending capabilities can provide point-of-purchase lending themselves, all in their own right, without sharing fees or any of the revenue tech-enabled revenue.

To get started, it helps to realize that, although issuing installment credit can seem complex and stressful to many retailers, engaging a specialist technology provider, preferably one versed in the needs of retailers, can get you there quickly, and in the long run less expensively, than other alternatives. This approach also:

  • Provides streamlined automation that cuts operational costs and increases overall returns using white-label technology backed by 24/7 support and consultation
  • Minimizes credit risks by means of artificial intelligence directed by machine-learning algorithms
  • Sharply reduces human error with AI-powered workflows and intuitive interfaces

“Another advantage of a tech-assisted, in-house lending comes in the form of constant improvement,” adds Voronenko. “For a software-as-a-service provider like TurnKey Lender, staying at the forefront with updates is crucial, so that the technology never acts, looks, or feels outdated.”

A new wrinkle on digital lending powers best-of-breed functionality

In fact, a recent innovation at TurnKey Lender underlines its strengths as a leading lending-tech provider — one that leads to another choice for businesses in search of point-of-sale lending capabilities. The technology company recently added functionality to our credit-management suite so companies that lend through multiple retailers — community banks, for example, or credit unions — can manage these complex and sometimes far-flung relationships with precision and flexibility.

This provides a new wrinkle on traditional bank-backed retail lending. Banks that use TurnKey Lender technology to run multi-client lending complexes provide state-of-the-art, full life-cycle, lending services that are as comprehensive and yet still as nuanced as their clients demand.

“In this configuration, any business can sign-up on a TurnKey Lender-enabled, bank- or credit-union sponsored lending platform, and outsource crediting to the institution in question,” says Voronenko. “A business that extends credit through a lender using our technology can simply create new loan applications as the need arises using their TurnKey Lender Vendor Portal.”

This effectively lowers a significant barrier to smaller retailers entering the lending space by unifying and rationalizing all functionalities required to run fast-financing programs in the hands of a third-party outsourcer equipped with an easy-to-use SaaS powered by the latest artificial intelligence.

Embedded in-house financing with TurnKey Lender

Schedule a personalized demo of TurnKey Lender Retail here.

Share:

RELATED SOLUTIONS

DV interview blog article november 2023

How traditional finance providers can capitalize on the embedded lending revolution

auto-dealership-financing-software-basics-turnkey-lender

Why Auto Dealers Should Consider Digitizing Their In-House Lending Programs