A quarter of UK retailers are not cashing in on the rise in consumers spending on finance. This is according to new research from solutions provider Duologi.
The study found that consumer borrowing is on the rise. 16% of consumers now buy on finance, rather than credit cards and bank loans, compared to 6% in 2017.
83% of consumers said they would consider using point of sale finance in the future, compared to 78% in 2017.
Approximately 42,000 businesses are not offering POS finance. They’re missing out on this growing opportunity.
The report surveyed 500 SMEs across a range of retail sectors. It asked about their concerns for the future and their understanding of POS finance.
For the SME retailers that do offer finance as part of their business model, there is a certain degree of awareness around the benefits it can bring.
But, there is also a clear push from consumers. 27% of retailers said that their customers expect the option in the current climate. Another 28% saying that customers were asking them to provide it.
Michael Bevan, CEO of Duologi, said: “Consumer demand is increasing. They are now more willing to borrow funds than ever before.
“There is a huge opportunity for SME retailers to offer a helping hand. As well as boost sales and their own bottom line.
“But, there are still a lot of retailers that aren’t capitalising on this growing market. This is despite fierce competition and pressure to keep pace with the demands.
“If retailers are to thrive in the future it’s important that they’re empowered with the knowledge and tools needed.
“There are now a range of POS options available that are quick and easy to put in place. It can make paying by finance as easy as paying with a card.”