Checkout Financing

Point-of-sale financing offered during the checkout process, allowing buyers to select payment terms before completing their purchase.

Brief Definition

Point-of-sale financing offered during the checkout process, allowing buyers to select payment terms before completing their purchase.

What is Checkout Financing?

Checkout financing is a point-of-sale lending solution that presents buyers with flexible payment options during the checkout process. Rather than requiring full payment upfront, it allows the buyer to choose terms — such as Net 30, interest-free installments, or extended monthly payments — before completing their order.

How It Works

When a buyer reaches checkout on a merchant's website, the financing option appears alongside traditional payment methods. The buyer applies (often with just basic business information), receives an instant credit decision, selects their preferred repayment terms, and completes the purchase. The merchant gets paid upfront, and the buyer repays the financing provider over time.

Why Merchants Offer Checkout Financing

Checkout financing removes the single biggest barrier to completing a B2B purchase: budget constraints. By giving buyers the option to pay over time, merchants see higher conversion rates, larger average order values, and increased customer loyalty. And because the financing provider assumes the lending risk, there's no downside for the merchant.

Key Takeaways

Checkout financing offers payment flexibility at the point of sale
Buyers apply and get approved instantly during checkout
Merchants get paid upfront regardless of the buyer's repayment timeline
It directly increases conversion rates and average order values