Building The Perfect Lender Lineup: How To Be A 'Yes' Company That Never Disappoints Customers

In the world of retail and consumer financing, one of the most painful customer experiences is hearing "no" – especially when they're excited about making a purchase. I've been on both sides of this challenge – as a retailer watching sales associates awkwardly navigate multiple declined applications, and now as the founder of FormPiper, helping businesses eliminate this problem entirely.

Let me share the key principles that transformed my retail business and now help thousands of other businesses become "yes" companies that never disappoint customers.

The Costly Mistake Most Retailers Make

Most business owners make a critical error: they project themselves onto their customers.

I hear it constantly: "My customers don't need financing. I would never finance my product."

This kind of thinking immediately limits your business potential. Think about it – within a 20-mile radius of your business, do you truly understand the economic situation of every potential customer? Of course not.

People use financing for three primary reasons:

• Some have no choice – They live in a credit cycle, paying off one purchase to finance another
• Some use strategic financing – They can afford to pay cash but prefer to use the bank's money (like 24 months same-as-cash) while their money works elsewhere
• Some face temporary cash flow challenges – Even financially stable people experience life events that temporarily limit their disposable income

When you provide only one payment option, you're essentially telling a large percentage of potential customers, "I don't want your business."

The Painful Process That Drives Customers Away

When I ran my retail business, I quickly realized that offering just one financing option meant turning away up to 70% of applicants. So I added more lenders – but this created a new problem.

Imagine this scenario: A young sales associate works hard to build value in your product. The customer is ready to buy, but they need financing. Your associate nervously submits the application, only to return with bad news: "I'm sorry, you were declined."

Now they awkwardly suggest, "But we have another application! It's a bit longer than the first one... could you spend another 5-10 minutes filling it out?"

The customer reluctantly agrees. Another decline. Another application suggested.

By the third attempt, both your sales associate and customer are thoroughly demoralized. Most salespeople – especially newer ones – will simply give up rather than face this excruciating process repeatedly. And customers? They're out the door after the second decline.

Building The Perfect Lender Lineup

The solution is what I call "building the perfect lender lineup" – creating a financing ecosystem that ensures every customer gets approved through a seamless, single-application process.

Here's how to structure it:

• Start with a prime option (typically 30-40% approval rate)
• Add a near-prime option (picks up another 10-15%)
• Include two sub-prime options (adds another 15-20%)
• Finish with an in-house program (covers the remaining 30-35%)

With this strategy, your approval rate jumps from 30% to 100%. Every customer walks out with an option to finance their purchase.

The in-house program is your safety net. It might require 50% down with 12-month financing on the remainder – but it ensures you never have to say "no."

Technology Makes It Seamless

The perfect lender lineup only works if the application process is seamless for both customers and staff. That's why we built FormPiper – to eliminate the painful multi-application experience.

Instead of separate applications, customers complete just one form. Our system instantly sends their information to all appropriate lenders and returns approvals in seconds. Customers can then choose their preferred financing option and complete the entire process digitally.

This transformation means:

• Sales staff never face the awkwardness of multiple declines
• Customers have a dignified experience, even with challenged credit
• Your business gets maximum approval rates and closing percentages
• You become known as the "yes company" that always finds a solution

The Hidden Revenue Opportunity

Most businesses track their approval rates incorrectly – or not at all. When I ask owners what percentage of customers get approved, they typically say, "Oh, everyone gets approved." When I ask how many approved customers complete their purchase, they say, "Everyone buys!"

Both answers are almost always wrong.

Without proper tracking, the typical close rate on approved financing is around 50%. With proper tracking and training, that jumps to 85%. That's 3.5 additional sales for every 10 approvals!

Even more critical: economic conditions constantly change. Your prime lender might approve 40% of applicants today but only 20% next quarter. Without data and the ability to quickly adjust your lender lineup, your business is vulnerable to these shifts.

The Only Things You Can Control

In business, you only control what happens within your four walls. The economy, interest rates, political decisions – these are beyond your influence.

What you can control is remarkably simple:

• Create a great culture
• Present your product with value
• Market effectively to invite people to your business
• Roll out the red carpet when they arrive
• Educate them thoroughly
• Give them every possible way to pay

This last element – giving customers every possible way to pay – is where most businesses fall short. But it's also one of the easiest areas to improve.

The Action Plan

If you're ready to transform your business into a "yes company" that never disappoints customers, here's your action plan:

• Audit your current financing options – What percentage of applications get approved? What percentage of approvals become sales?
• Identify the gaps – Where are customers falling through the cracks?
• Build your perfect lender lineup – Ensure you have prime, near-prime, sub-prime, and in-house options
• Implement technology to make the process seamless
• Train your team to understand the options and present them confidently
• Track results religiously – Monitor approval rates and close rates by location and lender

No matter what business you're in – retail, medical, dental, automotive, furniture – the ability to help customers finance their purchases is often the difference between thriving and merely surviving.

Remember: your job isn't to judge how customers should pay. Your job is to provide an amazing product or service and give them every possible way to acquire it.