Snap Finance Drives Sales With Flexible Lease-To-Own Consumer Financing

According to Experian, 30% of Americans have subprime credit scores, which could impede access to traditional financing options and thereby limit their ability to afford household commodities or cover unexpected expenses. Lease-to-own financing bridges the gap between customers building or rebuilding their credit and the things they need and want, giving retailers the opportunity to grow their customer base. 

When a store has limited financing options, customers with credit issues will either settle for the least expensive item or leave empty handed after being rejected. Conversely, retailers that offer a lease-to-own option see a significant boost in their average order value from consumers who now have higher spending power. Satisfied customers will return whenever they need, resulting in increased repeat business and incremental revenue for businesses offering lease-to-own.

Flexible consumer financing not only allows the customer to get what they want quickly; it also minimizes repayment risk from the retailer by funding each transaction as soon as two days after the customer receives their purchase. And with no complicated software integrations, businesses can start growing their customer base and revenue from day one of their partnership with their lease-to-own financing provider. 

This model of financing is becoming popular among retailers and stores who recognize this need and the many advantages it brings. 

What Is Lease-to-Own Financing?

SNAP FINANCE is helping both customers and retail businesses succeed by providing a reliable financing solution that fits their needs. 

Lease-to-own financing is a fast, easy and convenient alternative for individuals who don’t qualify for traditional options. It allows customers to get what they need and want, then make payments over time—even with poor credit or no credit. 

Customers no longer have to settle for less than what they want. Because lease-to-own providers look beyond an applicant’s credit score, a customer has a higher chance of approval. This gives them access to a wider selection of products and price ranges. And thanks to its simple qualification criteria and minimal upfront costs, lease-to-own financing allows customers to enjoy their merchandise quickly and easily. 

As banks tighten their lending requirements, consumers with credit issues are often left unattended and in need of accessible financing alternatives. With Snap Finance, retailers can ensure their customers have the support to access the products they want when they want them. 

* The advertised service is a lease-to-own agreement provided by Snap RTO LLC. While no credit history is required, Snap obtains information from consumer reporting agencies in connection with the lease-to-own application. Not all applicants are approved. 

About Snap Finance

SNAP FINANCE is changing the face and pace of lease-to-own financing with easy, fast and straightforward solutions.

The company prides itself on delivering the level of integrity and transparency that retailers and their customers deserve by following these principles and best practices:

  • Disclosing terms, fees and costs upfront
  • Ensuring every customer understands the financing product before signing their agreement
  • Educating and certifying all Snap Partners in lease-to-own best practices and policies

Snap’s proprietary decisioning platform delivers an application approval rate of up to 80%. In 2021, the company generated $1.5 billion in incremental sales for its partners across the country. 

Snap Partners also benefit from its free marketing program, EDGE, which delivers customers to their store pre-approved and ready to shop. Together with the company’s ecommerce lease-to-own financing solutions, retailers can boost their omni-channel presence with minimal investment. 

Benefits of a Snap Partnership

Boost Omnichannel Sales 

Its lease-to-own financing solutions let customers apply from their smartphone while in your store or at check-out on your website 

Higher Average Order Value 

Customers can increase their spending power with approvals for up to $5,000* 

Easy Customer Application 

With a streamlined process and simple requirements, customers have higher approval chances 

Fast Decisioning 

Consumers can get a response in less than two minutes, allowing them to shop with confidence 

EDGE Marketing Program 

Gain incremental sales from new and repeat preapproved clients sent to your store 

Two-Day Funding Process 

Quickly receive funds for each financed transaction while Snap assumes the financial risk 

 *The average approval amount a customer receives is $3,000. 

Understanding Customers With Less Than Perfect Credit 

LIFE-CHANGING events like marriage, divorce or job transitions are a few of the reasons why someone may become a credit-challenged customer—even if only for a short time. Experian classifies anyone with a credit score under 670 as a “subprime borrower” and estimates that 30% of US consumers fall into this category, with millennials representing a significant percentage.

According to a 2022 study performed by the Federal Reserve, 32% of Americans do not have $400 to cover an unexpected expense—making access to financing solutions a major necessity for them. Their research also states that 11% of all adults said they would be unable to pay the expense by any means, indicating that alternatives to traditional financing options could be of significant importance for both consumers and businesses.

Without access to financing solutions like a credit card, personal bank loan or retail financing, these consumers require pay-over-time solutions to get the things they need. 

Credit-challenged customers are spread across the US and despite being gainfully employed, they have limited assets and constrained incomes. Because of their situation, these individuals fear being denied financing and either delay major purchases or shop around for deals in stores that offer flexible payment options. 

Consumers with credit issues work hard to earn an income while facing life transitions that have impacted their ability to access traditional financing. Like any other consumer, they need solutions to be able to afford major purchases and improve their quality of life. Lease-to-own financing offers that opportunity.

How Snap’s Lease-to-Own Financing Works 

SNAP’S simple application requirements make it easy for consumers to apply and get a decision fast.

When an applicant is approved, Snap purchases the merchandise and leases it to the customer. Once they fulfill the terms of their lease-purchase agreement, they become the owners and the merchandise is theirs. It’s that simple!

Another benefit of Snap is that customers can lower their overall cost through our Early Ownership Options.

Maximum-Term Plan

Snap’s default plan offers customers the lowest regular payment over 12 to 18 months, at the end of which they own the merchandise. The total cost could be one and a half to three times the cash price of the merchandise, plus applicable taxes and fees.

100-Day Option

Customers can reduce the total cost of their lease and acquire early ownership by making payments equal to the cash price of the merchandise, plus taxes and fees, within 100 days after they sign their agreement.*

Early Buyout Option

For maximum flexibility, customers can acquire ownership at any point between the end of the 100-day period and their final scheduled payment. By paying all maximum-term lease payments before their due date, customers can receive a discount on remaining lease payment around 30%, depending on state of residence.

*Standard maximum lease term is 12–18 months. To exercise this option, consumers must ensure the full 100-day amount is paid within 100 days by contacting Customer Service at 1-877-557-3769 or scheduling payments in the customer portal. 

This article was featured in the Summer 2022 issue of Sleep Retailer.