Furnishing your home with quality, comfortable furniture can be expensive. With the average sofa costing over $1,000 and sectionals averaging $2,500 or more, furnishing costs can quickly add up. This could result in leaving your dream furniture seeming out of reach. However, furniture financing options are available to help make nice furniture more affordable.
Furniture financing allows you to spread out tailored payment plans over time rather than paying the full cost upfront. This helps ease the financial burden while still getting to enjoy your new furniture right away.
There are many advantages to financing furniture, but it’s important to understand how these payment plans work and choose the best option for your needs.
How Does Furniture Financing Work?
There are a few main types of furniture financing plans available from stores and lenders:
Installment Furniture Loans
With an installment loan, you’ll borrow a set amount of money to be paid back in fixed monthly payments over a specific time period. Interest is usually charged on the loan. You get the full loan amount upfront to pay for your purchase.
Installment plans often range from 12 to 36 months. The loan amount, repayment timeline, interest rate, and eligibility requirements vary depending on the lender.
In-Store Payment Plans
Many furniture stores now offer their own payment plans. These allow you to finance a furniture purchase and repay the store in monthly customizable installments over 6 months to several years. Interest may or may not be charged.
Payment plans through a furniture seller have the convenience of being built right into the buying process. The best part? You don’t need to formally apply or get approved for credit ahead of time.
Buy Now Pay Later Furniture Services
Third-party “BNPL” services like Affirm, PayBright, and Flexiti allow you to finance furniture purchases. You split the cost into biweekly or monthly payments over 6 to 60 months. The full purchase amount is often required upfront.
These plans may be interest-free or charge lower interest based on your credit. BNPL can make financing easier by avoiding credit checks and long applications.
No Credit Form Needed Financing
Some financing companies like Snap Finance offer furniture financing to consumers even with bad credit or no credit history. Pay-over-time loans appeal to people unable to qualify through other lenders but have higher interest rates.
Eligibility is often still based on income thresholds with proof of income required. But standard credit checks aren’t typically part of the approval process. So, you can get furniture financing even with bad credit.
What Are The Benefits Of Financing Furniture
Furniture financing offers several advantages to consumers compared to paying fully upfront:
1. Afford High-Quality Furniture
The number one benefit of financing furniture is it allows you to afford pricier, better quality furniture without breaking the bank.
Rather than cheap furniture that needs frequent replacing, Berre offers financing nicer furniture that saves money in the long-run. And you get to decorate with the furniture looks and styles you really want rather than settling for lesser quality, more affordable options.
2. Pay Over Time
By stretching payments out over months or even years, monthly costs are lowered substantially versus paying one large lump sum.
This lightens the financial load and makes expensive pieces or whole room makeovers more budget-friendly. Making incrementally smaller payments is easier for most households to manage.
3. Pay No Interest
Certain financing offers come with 0% APR, meaning no interest fees.
As long as payments are made on time, 0% interest financing allows you to buy now at full price but pay the cost over time essentially interest free. This offers cost savings versus borrowing APR-charging loans.
4. Instant Furniture Ownership
Rather than saving up gradually for bigger furniture purchases, financing allows you to acquire items immediately.
5. Establish Credit History
For those with no or poor credit, specialized furniture financing can help in establishing an initial credit history. Making on-time monthly payments helps demonstrate creditworthiness and builds your credit score gradually.
What Are the Best Furniture Financing Options?
With various types of plans available offering different terms and structures, how do you choose the right financing solution for your furniture needs?
Here is an overview of some of the best furniture financing options in Canada to consider:
Another popular option for financing furniture purchases is Financeit. This company allows customers to finance furniture, electronics, appliances, mattresses, and more from partner retailers through point-of-sale payment methods.
The customer-friendly policies and approval process of Financeit makes them an accessible choice. It enables you to unlock affordable furniture payment plans for expensive furniture items. The sheer number of retail partners offering Financeit financing also makes finding a plan for your furniture easy and convenient.
2. Flexiti Financial
One top choice for Canadians is Flexiti Financial, a point-of-sale payment plan offering no interest furniture loans and no down payment.
You can finance any amount up to $25,000 for furniture (and other purchases) and pay over a flexible 12 to 60 month time frame. Simple eligibility verification takes just seconds to complete in-store or online
Owned by Affirm, PayBright is another very popular payment plan choice. Like Flexiti, it offers 0% interest financing for 3 to 60 month terms.
Furniture amounts between $250 and $25,000 can be financed based on a soft credit check. PayBright is supported by over 16,000 retailers.
As Canada’s largest alternative financial services provider, Easyhome specializes in financing home goods like furniture through loans and leasing.
Loan terms range from 12 months to 5 years with both fixed and open credit options. Approval decisions are made quickly based on income rather than relying heavily on customer credit scores.
5. Snap Finance
Snap Finance specifically provides furniture and appliance financing for customers with bad credit or no credit history.
With Snap, customers can qualify for monthly payment plans for furniture to finance from $250 up to $15,000. While interest rates are higher, Snap loans can be a lifeline for those unable to obtain funding elsewhere.
6. Berre Furniture
Berre is known for its easy furniture credit approval and budget-friendly furniture. To make purchases even more affordable, Berre provides in-store flexible furniture payments solutions.
There is also an option to finance furniture purchases through quarterly payment plans.
How Do I Qualify & Apply for Furniture Financing?
Furniture lenders have finance approval and eligibility policies tailored to their target borrowers. Here is an overview of typical furniture financing eligibility and applications.
Financial Qualifications for Furniture Loan Application
Typical financial eligibility standards look at:
Income - Most plans require regular income over a minimum threshold, often $1,200+ per month. Pay stubs may be requested as proof.
Employment - Stable, consistent employment helps demonstrate repayment capacity. Self-employment income can also qualify.
Credit history - Each lender sets their own credit standards if they check your history at all. From no credit application checks for bad credit products to soft checks only to hard credit checks for zero-interest plans.
Applying for furniture financing is often simple and takes just a few minutes to complete:
- Choose lender - Pick a lending company that matches your credit/income profile and offers the credit solutions you want.
- Apply online - Complete a short online furniture financing application form submitting contact details and income/employment info. Soft or hard credit check performed.
- Get decision - If approved, you get a credit decision within seconds to minutes usually.
- Use financing - Take approval details to furniture retailers to use your financing at time of purchase.
In-Store Payment Plan Applications
For retailer payment plans like Financeit, Flexiti, PayBright and others, you can skip pre-approval and apply/get approved instantly right in the furniture store as you check out. Super fast and convenient!
Questions to Ask Before Choosing Financing
While buying furniture on credit can pay dividends through more flexibility and adjustable payments, it also comes with risks like interest costs or credit damage if unpaid.
Be sure to ask these key questions first while making a financing request. See if furniture financing aligns with your financial situation and shopping goals:
- What is the interest rate, if any - and total interest costs?
- Are there application or processing fees to finance?
- What is the timeline for repayment - months or years?
- What is the monthly payment amount and total repayment amount?
- Are there early repayment penalties if balance is repaid early?
- Will late or insufficient payments be reported to credit agencies?
- What happens if I cannot make the agreed payments?
- What happens in case of deferred payments?
Getting clear upfront on all financing terms helps set proper expectations so payments remain manageable within your budget. Read all the fine print carefully!
Use Financing to Unlock Furniture Freedom
The bottom line is furniture financing options open up tremendous shopping flexibility. It allows you to afford the items you love through easy monthly payment structures.
Rather than penny pinching your furniture budget amid rising costs, financing helps ease financial barriers. Now monthly household budgets aren’t squeezed as tight.
By evaluating multiple furniture financing options for desirable rates and terms aligned with your needs, you can strategically leverage no interest furniture loans.
Visit Berre Furniture to get your financing sorted now!