New Snap Finance® Research: More Small Businesses See a Rise in Customers Who Need Subprime Financing

Small businesses lean on alternative financing to help shoppers and drive growth amid economic pressures.

SALT LAKE CITY--(BUSINESS WIRE)--Snap Finance, a leading provider of innovative and convenient pay-over-time solutions, today released new research showing that small businesses are increasingly relying on alternative financing to support shoppers and drive growth amid economic pressures.

In a survey of more than 400 small and mid-sized business owners, Snap Finance asked how and why they use subprime or tertiary financing, which is designed for consumers with credit scores below 670. Here’s what they told Snap Finance:

• Almost half (46%) started offering access to subprime financing within the past year.
• About three out of four (74%) say demand for this type of financing is increasing as more shoppers are turned down for traditional credit cards and loans.
• A strong 76% say offering access to subprime financing has helped boost sales and 74% say it has increased the amount customers spend.

“When families are turned away by traditional credit, it can stop a sale cold,” said Ted Saunders, CEO of Snap Finance. “Snap Finance works closely with merchants and consumers to offer smart, accessible financing options. We’re proud to provide solutions that help shoppers get what they need and help our retail partners grow.”

The report also shows:

• Many business owners value partners who bring them new customers, expedite payments, and provide marketing assistance.
• More than half (56%) have increased their marketing spending this year, but many report they lack the time, tools, or staff to do it effectively.
• One in three (32%) say they’re seeing more customers ask for financing because of today’s economy.

“People are feeling squeezed right now, and more of them are looking for flexible ways to pay,” said Rob Brown, Head of Research & Insights at Snap Finance. “Small businesses are stepping up to offer access to solutions that help customers buy what they need while helping stores stay competitive.”

The survey was conducted in March 2025 among U.S. businesses with fewer than 1,000 employees, covering a wide range of industries.

For more detailed insights from the study or to explore Snap Finance’s solutions, click here.

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About Snap Finance

Snap Finance harnesses the power of data to empower consumers of all credit types to get what they need. Launched in 2012, Snap’s technology utilizes more than a decade of data, machine learning, and nontraditional risk variables to create a proprietary platform that looks at each customer through a more holistic lens. Snap’s lease-to-own and loan solutions are changing the face and pace of consumer retail finance. For more information, visit snapfinance.com.