For Subscribers

Switching to a New Payments System Helped This Small Furniture Store Boost Sales Now they can compete.

By Mark Yarm

This story appears in the April 2017 issue of Entrepreneur. Subscribe »

Zohar Lazar

Outdoor furniture isn't cheap, and that means big furniture stores have a major advantage over little ones: They're able to provide no-down-payment financing on sets that can run into several thousands of dollars. Laura and John Merlein, co-owners of Laura's Home & Patio, in East Northport, N.Y., couldn't afford to offer something like that -- and as a result, they appeared to be losing customers to the large stores nearby, especially on big-ticket items. "We had a number of customers asking us if we did any kind of financing," Laura says.

Related: 25 Payment Tools for Small Businesses, Freelancers and Startups

The fix

John set out to solve their financing issue and discovered Blispay. It allows retailers to offer customers no-interest financing on purchases of more than $199, so long as they're paid in full in six months. (After that, there's a 19.99 percent APR.) And Blispay handles basically everything: Setup is free, and it provides in-store sign­age and online banners, charges no fee and even handles the payments. Customers apply for financing (in the form of a Blispay Visa card) via a user-friendly smartphone app.

Related: The 15 Most Popular Online Payment Solutions

The results

Laura's Home & Patio began offering Blispay last May, and the results were immediate. During the shop's peak season, customers using Blispay accounted for 13 percent of sales and spent an average of $4,517 -- a whopping 92 percent more than the store's median patio furniture sale. Take that, big chains! It helps that the application process is fast; approval takes about five minutes. "It's great that they don't have to leave the store," Laura says. "Because if somebody has to leave, they may not come back."

Related: 6 Ways to Think Outside the Box When Marketing Your Small Business

A second opinion

Blispay's top competitors are Synchrony, typically for larger physical retailers and Affirm, which is for online stores but is moving into brick-and-mortar. Brendan Miller, an analyst at the market research firm Forrester, says all retailers could benefit from these services -- and not just those with expensive goods. "It could be a fashion retailer selling $200, $300 cocktail dresses," he says. The best payment processing systems work in-store and (if need be) online, offer quick mobile sign-up and have transparent terms.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business Solutions

Tired of Micromanaging? Let AI Keep Your Projects on Track.

Lifetime access to this AI-powered project management software is now 75% off.

Buying / Investing in Business

Former Zillow Execs Target $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Franchise

He Was a Refugee as a Child. Now, He Runs 11 Businesses — and Has an Unexpected Mantra.

Orhan Veli is now the top-performing owner at Saladworks. He has a unique business outlook.

Business News

These 5 States Have the Most Affordable Housing, According to a New Report

U.S. News & World Report's latest rankings found the top five states with the most housing affordability.

Business News

Elizabeth Holmes' Partner Raises Millions for New Blood Test Diagnostics Startup: 'We've Learned From Her Company's Mistakes'

The startup insists it isn't Theranos 2.0 and that Holmes, who's serving a prison sentence after being convicted of fraud, "has no role."