Boosting approval rates and minimizing declines is a top priority for many merchants. After all, it directly impacts revenue and customer satisfaction. But what can retailers do to get more credit approvals? Let’s explore how to enhance your retail financing approval rates by examining the evaluation of credit and risk profiles by lenders, identifying common reasons for declines, and the importance of providing diverse financing options to your customers.

Understanding the Credit and Risk Profile Evaluation

Before we dig into strategies to improve approval rates, it’s crucial to understand how lenders evaluate credit and risk profiles. Lenders use a combination of factors to assess an applicant’s creditworthiness, including credit scores, income, employment history, and debt-to-income ratio. A higher credit score and stable financial history typically translate to a better chance of approval.

But what can you do when a primary declines an application? This is where secondary financing, such as Concora Credit, can play a pivotal role. By partnering with a reputable secondary financing provider, merchants can offer financing options to a wider range of customers, including those with less-than-perfect credit scores.

Common Reasons for Declines

To boost approval rates, identifying and addressing common reasons for merchant financing declines is essential. Here are some of the most prevalent issues:

1. Low Credit Scores: One of the primary reasons for financing declines is low credit scores. Many customers, especially younger ones, may not have established credit histories, leading to automatic declines.

2. Insufficient Income: Lenders often require applicants to meet minimum income thresholds. If a customer’s income falls below these requirements, their application will likely decline.

3. High Debt-to-Income Ratio: A high level of existing debt relative to income can signal increased risk to lenders. Customers with excessive debt may face financing declines.

4. Incomplete or Inaccurate Information: Simple application process errors, such as incorrect information or missing details, can lead to a decline.

5.Industry-Related Risk: Some industries are perceived as riskier by lenders. If your business falls into a high-risk category, securing financing for your customers may be more challenging.

Strategies to Boost Approval Rates

Now that we’ve identified common reasons for declines, let’s explore strategies to boost your approval rates effectively:

1. Offer a Range of Financing Options: One of the most effective ways to increase approval rates is by providing various financing options. This allows you to cater to a broader customer base, including those with lower credit scores.

2. Partner with a Secondary Financing Provider: Collaborating with a trusted secondary financing provider like Concora Credit can significantly enhance your approval rates. Secondary financing specializes in offering solutions for customers with diverse credit profiles, expanding your approval capabilities.

3. Streamline the Application Process: Simplify and streamline your financing application process. Ensure it is user-friendly and straightforward, reducing the chances of errors or incomplete submissions.

4. Educate Your Staff: Train your staff to effectively communicate the financing options available to customers. Knowledgeable staff can increase the likelihood of customers deciding to apply for credit.

5. Implement Risk Mitigation Strategies: Work with financing providers to develop risk mitigation strategies tailored to your business. These strategies can help minimize the perceived risk associated with your industry.

Wrap Up

Boosting approval rates and minimizing declines in consumer financing is a critical objective for businesses seeking to grow and thrive. By understanding the evaluation process of credit and risk profiles, addressing common reasons for declines, and implementing effective strategies, you can increase your approval rates and provide valuable financing options to a broader customer base.

At Concora Credit, we specialize in secondary financing solutions that empower merchants to offer financing to a wider range of customers. Partnering with Concora Credit can be a pivotal step toward achieving your approval rate goals. Remember, a well-rounded approach to financing and a commitment to customer satisfaction can lead to higher revenue and long-term success in consumer financing.

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Concora Credit is a service provider that works with third-party lending institutions to provide lending solutions for merchants. This article is for informational purposes only. To make sure that any information or suggestions in this blog fit your particular circumstances, you should consult with a financial professional before acting on any suggestions or information that we provide.

The post How to Boost Your Approval Rates and Minimize Declines with Second-Look Financing appeared first on Furniture Today.

HIGH POINT — Two students from the Savannah College of Art and Design were named this year’s winners of the Richard Frinier Design Scholarship from the International Casual Furnishings Assn.

The students — Drew Hart and Sebastian Solloa — were awarded a two-night stay in Atlanta during the inaugural Casual Market Atlanta in July. Among the highlights for the students was time with the renowned designer and his wife and business partner, Catherine Frinier. “They really made us feel at home and so graciously hosted us that weekend,” Hart said.

Hart, a furniture design senior at SCAD on track to graduate in spring 2024, grew up in Cincinnati. His winning submission was an outdoor collection titled Osiris, designed around the concept of bringing people together through intentional design.

“This piece was designed by the strong values my family has instilled in me, especially the importance of spending quality time with the ones you love,” said Hart. “I aimed to design a piece that fills the need for genuine connections and allows families to host loved ones.”

Solloa grew up in Mexico City near a town called Satellite, where he studied architecture. Before graduating, he was contacted by the tennis coach at SCAD and enrolled there as a tennis athlete. He graduated from SCAD with a bachelor of fine arts in furniture design and design for sustainability in March 2022.

Since graduating, he has been developing his design studio while offering sustainability assessments for different companies. He is currently the sustainability director for a furniture manufacturing company in Mexico while also designing kitchens and working as a design consultant for Crate & Barrel.

Solloa’s submission to the committee was a project called Calma, an indoor/outdoor piece inspired by nature. Through the use of biomimicry, design and poetry, Solloa said, he transformed the shape of a folding leaf into a chair.

The ICFA/Richard Frinier Design Scholarship was established in 2016 and is awarded annually to the winner of an online competition in which college-level students submit their original designs for outdoor living products.

See also:

• Find out how the pandemic inspired Richard Frinier’s latest collection
• See the 10 outdoor products recognized for design excellence by ICFA
• See which universities won recognition in Furniture Library scholarship

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HIGH POINT — The winners have been named for this year’s International Society of Furniture Designers Pinnacle Awards.

At the gala event held at the Loft at Congdon Yards tonight, 21 designs, their designers and manufacturers were honored with the 2023 Pinnacle Awards.
For the latest High Point Market news, click here to visit our Live From Market landing page.

And the winners are (click here for a slideshow of winning designs):

Accessories & Wall Décor
Phillips Collection Dancing Roots
Designed by Phillips Collection Design Team

Bedroom–Broad Appeal
Whalen LLC Scott Living Robin Black Wood Closet Collection
Designed by Kurt Berlin, Tandy Wang, Drew Scott, Jonathan Scott, and Whalen Design Team

Bedroom–Luxury
Caracole Classic Bedroom
Designed by Annina Fremgen of Caracole

Dining–Luxury
Caracole Classic Formal Dining
Designed by Annina Fremgen of Caracole

Entertainment Furniture
David Francis, LLC The Swirl Console Table
Designed by Catherine Blüm, David Francis, LLC

Home Office
A.R.T. Furniture Portico Home Office
Designed by ZagCo and A.R.T. Design Team

Home Textiles–Print
Kravet Inc Taplow Velvet
Designed by Lee Jofa Design Team

Home Textiles–Woven
De Leo Textiles Knockout
Designed by Katie Williams, Creative Director, De Leo Textiles

Leather Upholstery
Four Hands Padma Sofa – Eucapel Leather
Designed by Four Hands Product Design Team

Lighting
Hubbardton Forge The Chrysalis Collection
Designed by David Kitts and Paul Marr Hilliard

Major Collections
Caracole Modern Principals Whole Home
Designed by Christopher Sandomenico of Caracole with independent designers Ryan Saghian and Thor Tabor

Maker-Designer
Kamiya Furniture #0061
Designed by Jeremy Kamiya

Motion Upholstery
Bernhardt Furniture Aldo Power Motion Sectional
Designed by Bernhardt Upholstery Design Team

Occasional Storage
Jonathan Charles Water Pelagic Cast Metal Bar
Designed by Jonathan Charles Design Team and Abby Lane, Redhead Furniture Design

Occasional Tables–Broad Appeal
Sauder Woodworking Coral Cape Coffee Table
Designed by Nicole Kujawa and Lindsay Hierholzer, Sauder Design Team

Occasional Tables–Luxury
Universal Furniture Miranda Kerr Home Luxury Occasional Tables
Designed by Miranda Kerr with Dudley Moore and Laura Niece of Otto & Moore

Outdoor
Bernhardt Furniture Calypso-Trinidad Teak Collection
Designed by Bernhardt Exteriors Design Team

Stationary Upholstery–Luxury
Hooker Furnishings Jasmine Sofa
Designed by Charlie Zagaroli for M, a Hooker Furnishings brand

Youth
Phillips Collection Kid Sized Seat Belt Chair
Designed by Phillips Collection Design Team and Nuttapong

Green Leaf Award
David Francis, LLC Entertainment Furniture The Swirl Console Table
Designed by Catherine Blüm, David Francis LLC

Student Pinnacle Award
Vic Stocker – Junior, Appalachian State University
Jude–Turntable designed by Vic Stocker

2023 Pinnacle Awards sponsor: Platinum Sponsor: Andmore, Silver Sponsor: High Point Market Authority, Bronze Sponsors: Continental Hardware, Furniture Design Studios, Leggett & Platt and Sherwin-Williams; partners Elements Studios and Furniture Today; and thanks to the International Textile Alliance (ITA) and Sustainable Furnishings Council for their continued support.

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As a furniture retailer, understanding your customer base is crucial. The preferences and behaviors of today’s furniture shoppers are reshaping the industry, presenting new opportunities for retailers who can adapt to their needs. From demographics to purchasing patterns, here are five crucial insights that every furniture store owner should know.

1. Who are today’s furniture shoppers?

Recent data shows that younger generations account for a significant portion of furniture purchases, with 7 out of 10 purchases made by Gen Z and millennials. The average furniture consumer also has an income of $50-75K. Additionally, 51% of furniture purchases are solo decisions made by women. It’s also interesting to note that the majority of purchasers (70%) don’t have children in household – 47% have two adults with no children at home, while 25% are single adult households.

If you want to cater to these shoppers, consider incorporating convenience, customization, and affordability into your marketing strategies and product offerings, as these features tend to appeal to younger generations. You could also ensure your retail environment is inviting and inclusive, targeting both men and women, especially since women make more than half of the buying decisions.

2. Where do furniture shoppers prefer to shop?

Today’s furniture shopper is a mix of digital and physical. While 43% of consumers shopped online for furniture in 2022, a substantial portion still prefer the tactile experience of brick-and-mortar stores. On average, shoppers visit around 5.5 physical stores before making a purchase decision. This highlights the importance of creating engaging in-store experiences while also maintaining an effective online presence. Striking a balance between online convenience and an appealing in-store experience can greatly enhance your bottom line.

3. Where do furniture shoppers live?

More than half (57%) of furniture shoppers have recently purchased a home or are in the process of buying one. What’s more, 40% of purchases come from individuals who have lived at their current address for five years or more. These two demographics are likely to invest in larger, long-term pieces. On the other hand, recent research shows that 85% of renters prioritize cost when shopping for furniture, compared to 74% of homeowners.

If you want to appeal to these customer segments, consider offering a range of products at different price points. For the budget-conscious renter, offer affordable yet stylish pieces. For new homeowners or long-term residents looking to invest in quality furniture, provide premium options.

4. What are furniture shoppers planning to buy in 2023?

According to Consumer Insights Now, sofas top the list, with 40% of shoppers planning to buy one in 2023. This is followed by area rugs (29%), mattresses and occasional tables (23% each), recliners (22%), primary bedroom furniture (21%), and office furniture (15%).

To capitalize on these trends, ensure your inventory reflects what shoppers are seeking. Stock up on popular items and consider offering package deals or discounts on complementary items, like a sofa and area rug combo.

5. What impacts their purchasing decision?

Reviews play a significant role in the buying process, with 19% of all furniture shoppers and 40% of Gen Z shoppers always reading reviews. Maintaining a strong online presence with positive customer testimonials and reviews can make all the difference.

Additionally, providing accessible financing options can be an incredible driving force for higher sales and enhanced customer satisfaction. In fact, 27% of shoppers prioritize affordable, easy financing options. Financing can be particularly beneficial for Gen Z and millennial shoppers, who may not have large amounts of disposable income but are willing to make regular payments over time.

The power of insight

In the ever-evolving landscape of furniture retail, understanding the nuances of today’s shoppers is key to thriving in a competitive market. By leveraging these insights, you’ll be well-positioned to meet the needs of different demographics, drive higher sales, and cement customer loyalty.

Snap Finance can unlock more sales for your furniture business

Want a financing partner that’s fully invested in the success of your furniture business? Snap’s lease-to-own financing can open the door to higher traffic and more closed sales at higher amounts. Visit snapfinance.com/become-a-partner to learn more on how becoming a Snap Partner can take your business to new heights.

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HIGH POINT — Retailers interested in expansion and the real estate market will have the opportunity to hear from a real estate expert this afternoon.

Julius Feinblum, principal of Julius M. Feinblum Real Estate, will conduct a seminar titled “Explore the Challenges in Expansion & Relocation for Furniture Stores” at the HFA Retailer Resource Center (Plaza Suites, first floor) at 4 p.m.

Feinblum told Furniture Today that the seminar is geared toward independent retailers. “It’s smaller guys who don’t see this exposure, what I’m talking about and discussing. They’re more independent and in smaller markets,” he said.

In the presentation, Feinblum will discuss the hottest real estate markets with the largest growth areas in the U.S., how to effectively analyze a real estate strategy to make the optimal decision of leasing or purchasing, and more.

He said the market predictions are always a hit among attendees.

“That’s one of my key things, uncovering the key real estate markets and growth areas in the U.S. I will share what they are and how we determined this information and how it could be misleading sometimes or helpful sometimes,” Feinblum said. “You have to know how to interpret the data. You get variables that are unpredictable based on the economy. The areas that are good furniture areas are usually good growth areas. But with good furniture areas, that means there are other guys there.”

Feinblum said, in most cases, buying property is the ideal choice if a retailer can do it, but in today’s economy, the lines between buying and leasing are getting blurrier.

“Historically, if you were in a position to do it either way, you buy because you own it, it appreciates in value over time, the tax advantages are very good, and it ensures maintaining a ceiling on your occupancy expense,” he said. “In today’s world, with the cost of money what it is and prices for good land and building costs, it creates an argument — even for guys who have a lot of money — to lease.”

He said while bankruptcies present opportunities, retailers have to understand the complexities involved in order to make the best decisions. “It opens the door to be able to get a decent location and a decent buildout where you wouldn’t have that if it wasn’t a bankruptcy or closing,” he said.

See also:

• See which 7 events are being hosted at American Home Furnishings Hall of Fame
• Andmore sets more than 40 webinars, events, presentations before and during fall market
• What educational, social events will be on tap this fall at High Point’s The Point?

The post How retailers can get the ABCs of real estate and expansion appeared first on Furniture Today.

HIGH POINT – The American Home Furnishings Hall of Fame Foundation is hosting several events during the October market at 311 S. Hamilton St.

Events include:

Science in Design Summit Welcome Mixer, at Celebration Hall
Thursday, Oct. 12, 6-8 p.m.
Kickoff event for the Science in Design’s Design, Art & Science Symposium. 

Common Thread for the Cure Reception, at Celebration Hall
Friday, Oct, 13, 5:30-7 p.m.

IDS/Norwalk Designer Social, at Celebration Hall
Saturday, Oct. 14, 7-7 p.m.
Honoring the 2023 IDS Designer of the Year Award winners and web tools for designers by Norwalk.

Hall of Fame Pinning Ceremony, at Hall of Fame Gallery
Sunday, Oct. 15, noon-12:30 p.m.
The 2023 Inductees are Alexander Peykar, co-founder and co-chairman of Nourison Home; the late Erie J. Sauder, founder and chairman of Sauder Woodworking; and Jeffrey Seaman, co-founder and CEO of Rooms To Go.

Pearl Collective Designer Focus Keynote Address, at Celebration Hall
Sunday, Oct. 15, 2-3 p.m.
You Deserve to Make Great Money Doing What You Love, with Gail Doby.

Trend Seminar and Mimosa Brunch, at Celebration Hall
Monday, Oct. 16, 10:30-11:30 a.m.
The new trend forecast by FS (Fashion Snoops) and other leading designers, moderated by Aurora Hinz of FS.

Home Furnishings Business Forty Under Forty, at Celebration Hall
Monday, Oct. 16, 5-6 p.m.

For the latest High Point Market news, click here to visit our Live From Market landing page.

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HIGH POINT — The  American Home Furnishings Hall of Fame Foundation will start the induction process at a ceremony to present the Hall of Fame pin to the 2023 inductees. During the ceremony, the plaques for each honoree will be uncovered on the Wall of Fame and bronze bricks will be dedicated and placed in the Walk of Fame.

This year’s honorees are: Alexander Peykar, co-founder and co-chairman of Nourison Home; the late Erie J. Sauder, founder and chairman of Sauder Woodworking; and Jeff Seaman, co-founder and CEO of Rooms To Go.

The ceremony starts at noon on Sunday, Oct. 15, at the American Home Furnishings Hall of Fame building at 311 S. Hamilton St.

See also: Going, going, … don’t miss this final call to purchase Hall of Fame gala tickets

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HIGH POINT — The American Home Furnishings Hall of Fame has been designated as a Certified Autism Center by the International Board of Credentialing and Continuing Education Standards (IBCCES), a global leader in online training and certification programs.

The CAC designation is granted by the IBCCES to organizations whose staff have completed focused training and certification in best practices when assisting autistic individuals. To achieve certification, at least 80% of the organizations’ staff must complete training through the IBCCES program and meet other criteria.

“Attaining Certified Autism Center certification is just one way we are working to ensure that our new building is fully accessible to all of our guests,” said Karen McNeill, CEO and president of the Hall of Fame Foundation board. “We want to be robustly prepared when we open as a museum and the public walks through our doors in the spring of 2024 when we complete Phase 2 of the exhibits.”

To better accommodate visitors with sensory challenges such as autism, the building includes a low-sensory area that offers a peaceful and calming retreat, as well as a convenient elevator, so physically disabled visitors have easy access to all rooms and exhibits.

As a dedicated “home” for the home furnishings industry, the Hall of Fame building provides a place where manufacturers, retailers and designers can gather, honor and share ideas. At the same time, the new building will offer a unique learning experience for local and visiting schoolchildren and the community at large when the second round of exhibit installations is completed next spring.

See also:

• Going, going, … don’t miss this final call to purchase Hall of Fame gala tickets
• New Hall of Fame exhibit turns spotlight on ‘divine’ trend for 2024

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HIGH POINT  — The Home Furnishings Assn. (HFA) announced today that CEO Mark Schumacher has decided step down from his role, effective May 31, 2024.

“Since 2020, I have been blessed to work with HFA’s board and staff, guiding us through the COVID pandemic and the subsequent disruptions faced by association members and the home furnishings industry. HFA became a strong advocate for the economic health and social impact of the home furnishings ecosystem. Now, I believe the time is right for a new leader to continue to inspire and steer this association,” Schumacher stated.

“The board thanks Mark for his contributions to the strength of the HFA and the home furnishings industry. Mark’s leadership created HFA growth and financial stability during the challenging COVID-19 pandemic. On behalf of the entire board, we thank Mark for all he has done for the HFA and wish him well as he embarks upon the next chapter in his life, ” said Board President Travis Garrish.

The HFA board of directors has formed a committee to determine the next steps in selecting the association’s next CEO. Garish added, “The HFA board is confident that the necessary processes and procedures are in place to ensure a seamless transition for a new leader.”

See also

• New HFA leader looks forward
• HFA’s Bradley retires; Schumacher to take top spot

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HIGH POINT — The American Home Furnishings Hall of Fame Foundation is offering a last chance to purchase tickets to the Hall of Fame Induction Celebration to be held Sunday, Oct. 15, at the Sheraton Greensboro Four Seasons.

Joining the current 131 members of the Hall of Fame are Alexander Peykar, co-founder and co-chairman of Nourison Home; the late Erie J. Sauder, founder and chairman of Sauder Woodworking; and Jeff Seaman, co-founder and CEO of Rooms To Go.

The Induction Celebration will feature a keynote address by David Pogue, an Emmy-winning CBS Sunday Morning correspondent and former New York Times columnist, and the hosts for the evening are interior designers Aviva Stanoff and David Santiago.

Tickets for the Induction Celebration are $250 per ticket for members ($2,500 for a table of 10) and $300 per ticket for non-members ($3,000 for a table of 10). To purchase tickets, visit the event’s website.

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