Featuring The Latest In Bedding Products & Technologies
SNAP FINANCE BOOSTS SALES WITH ALTERNATIVE CONSUMER FINANCING
HOW LEASE-TO-OWN FINANCING WORKS MILLENNIALS: THE LARGEST CONSUMER MARKET
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Contents 3
What Is Lease-To-Own Financing?
4 COVER STORY: SNAP FINANCE DRIVES SALES WITH FLEXIBLE CONSUMER FINANCING 6
About Snap Finance
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Understanding Customers With Less Than Perfect Credit
10 How Lease-to-Own Financing Works
sleepretailer.com facebook.com/sleepretailer twitter.com/sleepretailer Publisher....................................Christopher Schriever chris@bhsalesgroup.com Managing Editor...................................... Gretchen Kast gretchen@bhsalesgroup.com Editor........................................................Elaina Hundley elaina@bhsalesgroup.com Marketing Manager................................Elaina Hundley elaina@bhsalesgroup.com Design Firm...................................................Blue House bluehousedc.com Web Manager..................... Blue House Sales Group bhsalesgroup.com Providing bedding retailers with information and insights on a variety of Mattress and Bedding products. Since 1995. Sleep Retailer is published quarterly by Blue House Design, LLC and is mailed to more than 16,800 mattress and home furnishings retailers nationwide. © Copyright 2021 All rights reserved. Address correspondence to: Editor c/o Sleep Retailer, Blue House, 1835 7th Street NW, #210, Washington, DC 20001. The views expressed by the
editorial staff of this publication are their own, and do not necessarily represent the views of the advertisers or their agents. Sleep Retailer is an independent trade publication. Sleep Retailer neither takes sides nor declares a preference for any one manufacturer, supplier, technology, process or solution. Instead, we try to provide neutral information concerning mattresses and related products. Advertising space is available. Press releases or information about your company should be submitted to our editorial team for inclusion as space allows at info@sleepretailer.com. CIRCULATION NOTICE: Sleep Retailer will print 19,000 copies of Sleep Retailer. It will be mailed to our current list of more than 16,800 home furnishings retailers, buyers, owners and managers. We do not subscribe to a circulation auditing service but we are ready, willing and able to provide advertisers certification of mailing as reported by the US Postal Service. Sleep Retailer: ISSN 2163-7571
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 leaseto-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.
Benefits for Customers ✔ ✔ ✔ ✔ ✔
Available to all credit types High approval rates Minimal upfront costs Quickly satisfies consumer needs Easy payments over time
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.
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Cover Story
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.1 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.
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hen 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.2 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
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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.
Benefits to Mattress Retailers ✔ ✔ ✔ ✔ ✔
Higher average order value Boost sales and customer base Enhance customer satisfaction Improve repeat business Minimize repayment risks
Experian 2021 Consumer Credit Review., Experian https://www.experian.com/blogs/ask-experian/research/subprime-study/#s1 Federal Reserve Bank of Kansas City https://www.kansascityfed.org/research/payments-system-research-briefings/the-appeal-andproliferation-of-buy-now-pay-later-consumer-and-merchant-perspectives/
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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 omnichannel presence with minimal investment.
Benefits of a Snap Partnership Boost Omnichannel Sales
Fast Decisioning
Its lease-to-own financing solutions let customers apply from their smartphone while in your store or at checkout on your website
Consumers can get a response in less than two minutes, allowing them to shop with confidence
Higher Average Order Value
Gain incremental sales from new and repeat preapproved clients sent to your store
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
EDGE Marketing Program
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.
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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.1 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.2 1
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Without access to financing solutions like a credit card, personal bank loan or retail financing, these consumers require pay-overtime 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.
Experian 2021 Consumer Credit Review., Experian https://www.experian.com/blogs/ask-experian/research/subprime-study/#s1 Economic Well-Being of U.S. Households in 2021–May 2022 https://www.federalreserve.gov/publications/files/2021-report-economic-well-being-us-households-202205.pdf (page 36)
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11%
30%
32% Americans who need credit to cover an unexpected expense.i
679 Can’t Access Credit
Credit Challenged
The percentage of adults in the U.S. who can’t access traditional credit.i
The percentage of Americans with subprime credit scores.ii
The average credit score for young adults (24–39).iii
i Economic Well-Being of U.S. Households in 2021–May 2022 https://www.federalreserve.gov/publications/files/2021-report-economicwell-being-us-households-202205.pdf (page 36) ii Experian 2021 Consumer Credit Review., Experian https://www.experian.com/blogs/ask-experian/research/subprime-study/#s1 iii Millennials Record Highest Credit Score Increase in 2020., Experian https://www.experian.com/blogs/ask-experian/research/ millennials-record-highest-credit-score-increase/
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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.
REQUIREMENTS REQUIREMENTS TO TO APPLY APPLY
Be at least
18 YEARS of age*
Have a monthly income of
$750 or more
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.
Have an active checking account**
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.1
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. 1
Have a valid email address and phone number * Minimum age requirements may be higher in AL, MS, NE and Puerto Rico. ** May need a credit/debit card to apply.
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.
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