Why should I offer finance to my customers?

Offering finance increases your average order value and conversion rate. By allowing customers to pay in instalments, they are less price-sensitive and more likely to approve larger quotes or purchase higher-quality equipment.

Do I need a credit licence to offer finance?

If you offer finance directly (i.e., you lend the money), you generally need an Australian Credit Licence (ACL). However, if you partner with a third-party finance provider (like Zip Business or Brighte), they hold the licence and manage the compliance, which is the preferred route for most vendors. Buy now pay later contracts have been covered by the National Credit Code since 10 June 2025, so a buy now pay later partner needs a credit licence as well (ASIC information sheet 285, asic.gov.au).

What industries benefit most from customer finance?

High-ticket industries see the most benefit. This includes solar installers, home renovation trades, medical/dental practices and suppliers of commercial machinery or IT equipment.

Is the merchant responsible if the customer defaults?

With third-party finance providers, the risk is usually passed to the lender. Once the lender approves the customer and pays you, you are generally not liable if the customer stops making their repayments later.

How to offer your customers finance on purchases

Offering customer finance boosts sales for high-ticket products, turning potential buyers into immediate customers.
Carefully compare provider merchant fees which often range between 4-6% of the purchase amount.
Evaluate various options including 0% interest, small business lenders or invoice financing for your needs.

If you're looking for potential ways to get ahead of your competition, offering your clients finance options, such as point-of-sale (POS) financing options and 0% interest credit, could be just what your business needs.

Depending on the nature of your business and the cost of your inventory, there are a number of finance options designed for small-to-medium-sized enterprises (SMEs) to offer to their customers.

What is customer finance?

Customer finance is a payment plan that customers can use to purchase goods or services from your business. The customer receives finance from a third-party provider that you've partnered with to pay the cost upfront, and then the customer pays off the finance over time.

Customer finance providers differ in how their repayment plan fees are structured: some offer interest-free plans, while others may charge interest or fees to customers for using the service. You will usually need to pay a merchant fee to offer the service to your customers.

Which businesses can benefit from customer finance?

The best candidates for customer financing are businesses with high-ticket products and services. While what constitutes an expensive purchase varies from customer to customer, whether a customer needs to rely on a credit card to complete the purchase is typically a fair benchmark.

Different finance providers will have different criteria for their businesses. This will include minimum business turnover, length of time in business and minimum payment amounts.

What is the benefit of offering customer finance?

Offering finance to your customers can be a good way to convert "I can't afford this right now" into "I'll take it today". A large roadblock for businesses – and in particular, businesses that supply more expensive products or services – can be that customers just don't have the upfront cash available.

Some finance providers will offer training and sales support to promote their finance offering within your business and help you boost your sales.

But while there are many benefits to offering customer finance, there are a few drawbacks to consider as well. We've broken them down for you:

Pros

Simple application. Customers can apply for financing on the spot and may even be able to see their rates without a hard credit check.
Integrated marketing. Some providers allow you to advertise financing on your online store.
Quick. There's no waiting – customers can buy and receive purchases on the spot.
Increased conversions. Financing options can help buyers decide to buy more, increasing your bottom line.

Cons

Declined applications. Buyers don't need perfect credit to qualify but not everyone is approved. Ask your provider how it handles loan denials.
Costs. You'll pay to use the service with a percentage of the charge or a monthly fee. Ask about any other fees or charges, like minimum monthly quotas.
May require hardware. Find out whether you need specific equipment to accept these payment plans.
Loan minimums. There's the possibility that a lender won't have a minimum amount of financing that meets your needs.

How do you offer finance to customers?

There are a number of ways that you can offer credit to your customer base:

0% interest finance
Small business finance
Invoice financing
In-house financing

1. 0% interest finance

0% interest finance can be an attractive solution for customers looking to make larger purchases with the ability to pay in instalments. Depending on your business's annual turnover, you may qualify to offer 0% interest finance through a third-party provider.

There are a number of 0% interest providers on the market that offer customer credit options to SMEs. These include buy now pay later options such as Afterpay, Zip and Humm.

How does it work?

First, you need to sign up as a retail partner with your chosen finance provider. Then your customer can choose it as an option at the checkout either in-store or online. If they already have an account with that provider they can login and use their credit limit. Otherwise they'll sign up using their personal details.

The provider assesses the customer before approving, which can include a credit check. Since 10 June 2025, buy now pay later contracts have been regulated under the National Credit Code as low cost credit contracts, so the provider must hold an Australian credit licence and must carry out a modified responsible lending assessment before approving a customer (ASIC regulatory guide RG 281). Approval is often given on the spot. The lender usually assumes the credit risk, your business receives the money for the transaction upfront (minus any fees) and the customer receives their purchase right away. Check your merchant agreement, because some providers keep a right of recourse against you.

Most 0% interest credit providers are available both in-store and online. Some interest-free finance providers offer POS material promoting interest-free finance in-store, as well as training and support services for your staff to help to promote interest-free purchasing.

How much does it cost?

The cost of using a 0% interest credit provider will vary depending on the size of your business and your annual turnover. The provider will usually analyse your business credentials and make you an offer based on your circumstances. You may be charged:

Transaction fees. This fee could be as little as $0.30 but will depend on your business.
Merchant fees. This is a fee determined by the cost of the purchase. While it's usually around 4-6% of the purchase amount, it will largely depend on the size of your business.

Often providers make their money by offering interest-free introductory periods to customers but will eventually charge interest over time. Some will charge the customer higher fees and the merchant less, and others vice versa. Some interest-free finance providers will also have minimum and maximum transaction requirements. These will vary from lender to lender.

It may be worth speaking to a number of providers prior to submitting an application to make sure that the provider you choose fits your business model best.

What to be aware of

Merchant fees differ among providers. It's important to check these before you sign up with an interest-free provider and ensure they will be manageable for your business.

It's also worth considering whether interest-free finance would work for the nature of your business. If you own a retail store, then interest-free credit might integrate seamlessly. However, it may not be the right fit for all businesses.

How do you compare 0% interest finance providers?

When considering providers, keep both the needs of your customers and the needs of your business in mind.

Minimum amounts. Try to align the minimum lending amount with the average costs of your products. If you can't find a provider that matches your minimum, you might not need to offer financing.
Fees. Typically, both merchants and customers pay a fee for POS financing, but some lenders charge more than others. Review all of the terms before agreeing to a provider.
Application process. Make sure the application process is simple. If the process is too difficult, your customers might abandon their cart.
Mobile support. Depending on your industry, customers may require access to their loan from a mobile app.
Who assumes the risk? Avoid taking a hit because a borrower defaults. Confirm that the finance provider takes on the credit risk.
Available loan terms. Find out if the provider offers short or long-term loans. Long-term loans are better for larger purchases but could cost your customer more in interest. Short-term loans can come with no or little interest, but more expensive purchases can have high monthly payments.
Promotions and rewards. Some providers offer 0% interest financing, but only for qualified businesses.
Funding time. Confirm how long it takes to receive the cash from your sales.
Extra equipment. Find out if you need to buy new hardware to support the provider's services.

My experience using 0% interest finance

"A few years ago I had just moved to a new apartment and needed furniture to fill it. The expense of all of those items in one month was overwhelming, but for a few things I was able to spread the cost out with 0% interest finance offered in-store.

It made my experience at that store so much smoother. I was happy to go back to that business after that time knowing that I could spread the cost out again."

Rebecca Pike

Editor, Money

2. Small business finance

As well as interest-free finance, there are also some small business finance providers that may offer customer finance for your business. These include:

Certain business equipment leasing/customer finance companies
Some credit unions
Some online lenders

Unlike interest-free credit providers, you may have to do a bit of digging to find out which small business lenders provide this specific type of finance, as it may not necessarily be obvious from their websites.

How does it work?

As with interest-free finance, once you've made an agreement with a provider, your customers will be able to sign up to the payment plan online or in-store. The third party will usually run a credit check on your customers and they will usually be approved for finance on the spot, but this could vary from lender to lender.

Once your customer is approved for finance, they will receive their items or service right away and you will receive payment upfront.

How much does it cost?

The cost of small business customer finance will vary from lender to lender and will also depend on the size and nature of your business. The costs may include:

Interest charges. Interest charges will likely be charged to your customers and will vary from lender to lender.
Transaction fees. The merchant may be charged a fee per transaction.
Merchant fees. As with interest-free finance, you may be charged a percentage of the transaction as a fee. This percentage will vary depending on your lender and the agreement in place.
Monthly fees. You may have to pay a monthly fee for this service. This could be for a specific or an unlimited amount of transactions.
Annual fees. There may also be annual flat fees for using this sort of service.

What to be aware of

Some small business finance providers will have minimum transaction requirements for their service. They may also have other requirements, such as a minimum amount of sign-ups each month or a minimum credit amount via your business. Be sure to check all of these potential factors before submitting an application.

Some lenders may put the bulk of the fees and charges onto customers, where others may hold the merchant accountable for the expense of the service. Be wary that small business lenders may charge higher fees than some of the interest-free providers, as smaller businesses with less annual turnover pose higher risks to lenders.

3. Invoice financing

If your business is a B2B and you provide or could provide invoices to clients for your goods or services, you may benefit from invoice finance. Invoice finance is not traditionally a form of customer finance, but could potentially be used as such depending on your business and the services that you offer.

How does it work?

Invoice finance is typically a cash flow solution that allows businesses to unlock capital tied up in their unpaid invoices. You receive the invoice amount upfront from a third-party provider and your customer pays the financing company directly when the invoice is due. The invoice is used as security against the payment.

Some invoice financing companies offer the option to pursue payments themselves as well as provide insurance should the payment not be met, while others will leave the debt collection responsibilities to your business. Some invoice financing companies will run credit checks on your customers and others may not.

Some invoice finance providers offer customer finance solutions in which your customers can pay your costs or fees in monthly or weekly instalments. However, this will depend on the lender and some invoice financing companies might require full payment in a single instalment from your customers. Speak to your provider to see whether there is an option for you to offer your customers a monthly or weekly repayment plan.

Compare invoice financing products

20 of 26 results

Finder Score	Min. Loan Amount	Max. Loan Amount	Loan Term	Upfront Fee	Filter Values
8.2 Great Valiant Finance Business Terms Loans	8.2 Great	$5,000	$500,000	3 months to 3 years	Variable, starting from $0	Enquire now View details Compare product selectionCompare	loading
6.2 Standard ScotPac Invoice Finance	6.2 Standard	$200,000	$200,000,000	1 to 2 years	Establishment fee 1% of the limit	Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $200,000 in invoices.	Go to site View details Compare product selectionCompare	loading
ScotPac Selective Invoice Finance			No maximum amount			Finance your unpaid invoices on demand with terms of - months. 95% of invoice is paid upfront, with no minimum trading history required.	Go to site View details Compare product selectionCompare	loading
6.7 Standard NAB Vehicle & Equipment Finance	6.7 Standard	$10,000	$150,000	1 to 5 years	$600 initial set up fee	View details Compare product selectionCompare	loading
5.4 Standard BankSA Vehicle and Equipment Finance	5.4 Standard	$15,000	No maximum amount	1 to 7 years	upon application	This loan can be used to hire, lease or purchase vehicles or equipment for your business, with borrowing amounts from $15,000.	View details Compare product selectionCompare	loading
5 Standard ABR Finance	5 Standard	$10,000	$300,000	1 to 3 months	20%	View details Compare product selectionCompare	loading
6.2 Standard Fifo Capital Trade Finance	6.2 Standard	$500,000	$5,000,000	Up to 6 months		View details Compare product selectionCompare	loading
5.4 Standard Fleetcare Business Fleet finance and leasing	5.4 Standard		No maximum amount			View details Compare product selectionCompare	loading
8.8 Great Stratton Finance Business Car Loan	8.8 Great	$5,000	$300,000	1 to 7 years	$482	A business vehicle loan for up to $300,000, with flexible contract terms and fast turnaround times.	View details Compare product selectionCompare	loading
6.1 Standard Fifo Capital Selective Invoice Finance	6.1 Standard	$10,000	$1,000,000			View details Compare product selectionCompare	loading
7.7 Great Westpac Invoice Finance	7.7 Great	$1,000,000	No maximum amount			View details Compare product selectionCompare	loading
6 Standard Octet Trade Finance	6 Standard	$100,000	$12,000,000	1 to 4 months	Transaction fee 2.5%	Access a line of credit to pay suppliers in over 65 countries. Borrow from $100,000 up to $12,000,000.	View details Compare product selectionCompare	loading
5.4 Standard Royal Finance Secured Business Loan	5.4 Standard		No maximum amount		depends on amount borrowed	View details Compare product selectionCompare	loading
Bigstone Asset Finance		$10,000	$2,000,000	1 to 5 years	$250	Borrow up to 100% of the value of your assets with no ongoing fees and the option for low doc finance.	View details Compare product selectionCompare	loading
7.7 Great Earlypay Equipment Finance	7.7 Great	$50,000	$1,500,000	2 to 5 years		Upgrade or expand your business's equipment with equipment finance from Earlypay. Borrow from $50,000 to $1,500,000.	View details Compare product selectionCompare	loading
5.5 Standard Shift Asset Finance	5.5 Standard		No maximum amount	Up to 7 years	$499	View details Compare product selectionCompare	loading
5.4 Standard Bank of Melbourne Vehicle and Equipment Finance	5.4 Standard	$15,000	No maximum amount	1 to 7 years	Upon Application	Borrow from as low as $15,000 for your business' vehicle or equipment requirements. You may choose between owning, hiring and leasing the assets.	View details Compare product selectionCompare	loading
5 Standard Westpac Vehicle and equipment finance	5 Standard	$15,000	$250,000	1 to 7 years	Upon application	Finance your business vehicle or equipment with this loan, tailored to your business needs. Flexible repayment options available and this loan is secured against the asset purchased.	View details Compare product selectionCompare	loading
5.9 Standard ANZ Vehicle and Equipment Finance Most Loved	5.9 Standard	$7,500	$500,000	1 to 7 years	No establishment fee	Borrow from as low as $7,500 to fund your business vehicle and equipment needs. This loan is secured against the asset purchased and approved customers may be eligible to avoid paying a deposit.	View details Compare product selectionCompare	loading
8.9 Great Valiant Finance Vehicle and Equipment Finance Loans	8.9 Great	$5,000	No maximum amount	3 months to 7 years	starting from $399 and can be paid upfront or included in the loan amount	Enquire now View details Compare product selectionCompare	loading

Showing 20 of 26 results

Finder Score for business loans

We assess over 150 business loan products for their rates, fees and important features, assigning them a score out of 10.

Read the full methodology

How much does it cost?

Invoice financing costs depend largely on your business's annual turnover, your credentials and your industry. Normally with invoice discounting, a portion of the unpaid invoice is withheld (10-30%) and a "discount fee" is applied. A discount fee works in the same way as bank interest: it is the cost charged for the lending service, calculated on a percentage of the invoice value. This fee is taken from the withheld amount of the invoice and the remaining money is transferred to the business.

However, if you were to use this method as a form of customer finance, you may be able to offset some of the costs by charging a surplus on your invoices to customers who do not wish to make an upfront payment. Some invoice financing companies for industries such as accounting and law transfer the interest payments to the client, who pays off the invoice balance in instalments. Check with your provider to see if it can offer this service.

What to be aware of

Check all of the legalities and speak with your provider directly before offering your customers finance through the medium of invoice financing.

4. In-house financing

You can also provide in-house financing for goods and services. To provide your own in-house credit to customers, you will need to gather the following information:

Customer contact details (name, address, phone number, email)
The ABN (if a business), business structure, details of partners/owners, details of directors and trustees
Contact details for three or more supplier referees
Signed confirmation that they understand your terms and conditions
Their permission to conduct a credit check

This kind of finance can be time-consuming and risky for small businesses, and without a third-party provider, your business would not receive the payment for the transaction upfront.

Make sure you weigh up all of your options carefully before committing to a customer finance plan.

Finder survey: What type of personal lender would Australians consider first?

Response
My bank	80.12%
An online lender	6.59%
A different bank	5.81%
Other	4.33%
A payday lender	1.08%
A peer-to-peer lender	1.08%
In-store finance	0.98%

Source: Finder survey by Pure Profile of 1016 Australians, December 2023

Frequently asked questions about offering customers finance

If you offer finance directly (i.e., you lend the money), you generally need an Australian Credit Licence (ACL). However, if you partner with a third-party finance provider (like Zip Business or Brighte), they hold the licence and manage the compliance, which is the preferred route for most vendors. Buy now pay later contracts have been covered by the National Credit Code since 10 June 2025, so a buy now pay later partner needs a credit licence as well (ASIC information sheet 285, asic.gov.au).

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
1. Latitude Financial
2. Afterpay
3. Zip
4. Humm

Thank you for your feedback!

Written by

Bria Horne

Writer

Add to Preferred Sources

Bria Horne was a writer for Finder, with a specialist knowledge of personal loans, car loans and business loans. Originally from the UK, Bria has been a professional personal finance writer in Australia for over 2 years. She has an M.A and B.A in Philosophy and Literature from the University of Sussex, and previously worked on the UK’s leading hospitality publication. See full bio

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2 Responses

MonteSeptember 18, 2023

Hello there!

I’m in the early stages of launching a business and am eager to explore customer financing options to potentially offer my future clients. I’ve noticed that many financiers have criteria regarding the business’s operational duration, which poses a challenge for new entities like mine.

I was wondering if there are any programs or partnerships available through your platform that are tailored to support new businesses in offering customer financing? Essentially, I’m looking for a solution that can facilitate a smooth and trustworthy financing process for my customers, even though my business is still quite new.

Thank you for your time, and I look forward to hearing about any opportunities or advice you may have!

Best regards,

Finder

SarahSeptember 29, 2023Finder

Hi Monty,

It depends on the amounts and length of finance you wish to offer. Short term BNPL platforms like Afterpay and Paypal Pay in 4 might be useful for smaller amounts staggered over smaller timeframes, although the fees you’ll pay as a retailer at 6% are quite high. Other partners like Humm may be able to offer longer financing (for 12 months or more). The sooner you register and start trading your business, the more trading history you’ll have behind you, which will open up more options for you.

All the best!

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How to offer your customers finance

A guide to customer finance options for small businesses, including 0% interest finance.