Buying furniture is a significant investment that often comes with high upfront costs. Whether you’re furnishing a new home or upgrading your space, large items like sofas, sectionals, and beds can quickly add up. What’s more, paying the full cost at once isn’t always feasible for everyone. That’s where furniture financing comes in.
Furniture financing lets you divide the cost into smaller, manageable payments over time. Instead of waiting or settling for less, you can get what you need now and pay gradually.
In this article, you’ll learn how furniture financing works, its pros and cons, and what options are available at La-Z-Boy Ottawa, Gatineau and Kingston and other local retailers, so you can decide if financing is right for you.
Furniture financing is a payment solution that allows you to buy furniture now and pay for it over time. Instead of paying the full cost upfront, you enter into a financing agreement with a third-party lender. This lender covers the cost of your purchase, and you repay them through monthly installments.
Retailers often partner with financing companies like Flexiti, PayBright, or Fairstone to provide this service. Some plans come with 0% interest for a promotional period, which can make financing a cost-effective option. Others may include an administration fee or charge interest after the promotion ends.
Credit cards are also a form of financing. While you can earn rewards and points, carrying a balance will typically result in higher interest charges than a dedicated financing plan.
Understanding how these agreements work is crucial to avoiding unexpected fees or interest charges down the road.
Furniture financing is a helpful option for many homeowners, but it’s not without drawbacks. Understanding the benefits and limitations can help you decide whether it’s the right choice for your financial situation.
1. Higher Overall Cost of Interest Applies
If you miss the promotional due date or choose a plan that includes interest, you may end up paying significantly more over time than the original price.
2. Late Payment Penalties
Missing payments can lead to high interest rates or late fees. In some cases, interest can be retroactive to the original purchase date.
3. Potential Minimum Purchase Requirements
Some financing plans require a minimum spend (e.g., $500+) to qualify, limiting your flexibility.
4. Credit Inquiries May Affect Your Score
Applying for financing often involves a credit check, which may cause a temporary dip in your credit score.
Qualifying for furniture financing is a straightforward process designed to assess your creditworthiness and ability to repay the loan.
Most applications are completed either online or in-store and take only a few minutes to process. Approval depends on a variety of factors, including your credit history and current financial standing.
To apply, most lenders will ask for the following:
Some financing providers offer instant approval, often within just a few minutes. This means you can complete your application and receive a decision during your shopping experience, making it easy to move forward with your purchase on the same day.
In most cases, applying for financing will trigger a hard inquiry on your credit report. This can result in a slight and temporary decrease in your credit score. However, this impact is generally minimal and short-lived, especially if you continue to maintain good credit habits.
On the positive side, financing can help you build or improve your credit over time. As long as you make your payments on time and in full, your positive repayment history may be reported to credit bureaus, which can enhance your credit profile.
There are three main financial institutions that provide loans for furniture financing at the most popular furniture stores in Ottawa: Flexiti, Fairstone, and Paybright.
|
Financing Provider |
Retailers Offering It |
|
Flexiti |
La-Z-Boy, Leon’s, The Brick |
|
Fairstone |
Dufresne, Bennett’s Furniture, Valley Squire |
|
PayBright |
Wayfair, Mobilia |
While most financing providers offer similar services, their terms can vary in important ways. Interest rates may be as low as 0% during a promotional period, but interest may apply after that, sometimes starting from the date of purchase. Some plans also include administration fees or require a minimum purchase amount to qualify, typically around $500 or more.
Repayment flexibility is another key factor. Look for plans that allow early repayment without penalties, and be aware of how missed payments are handled. Reviewing the full terms before committing will help ensure the financing plan aligns with your budget and timeline.
La-Z-Boy Ottawa, Gatineau & Kingston partners with Flexiti to offer a flexible, customer-friendly financing experience.
You can apply in-store or online, whichever is more convenient. Once approved, you can use Flexiti to finance your purchase at any La-Z-Boy Ottawa, Gatineau or Kingston showroom. You can also learn more about Flexiti Financing with this article.
What credit score do I need to qualify for financing?
Most financing companies approve applicants with fair to good credit (typically 600+), but each lender has its own criteria.
Is it better to use a credit card or a financing plan?
If you can pay your credit card in full each month, it can be just as effective. However, furniture financing often has longer interest-free periods and lower ongoing rates.
Can I pay off my furniture financing early?
Yes, most plans allow early repayment with no penalty. Always check the fine print to confirm.
Are there hidden fees with financing?
Some plans charge administration or setup fees, and interest can apply after promo periods. Always read the full agreement before signing.
Can I apply for financing online?
Yes, Flexiti and other providers often have simple online applications available through the retailer’s website.
After reading this article, you should have all the information necessary to confidently decide to finance furniture.
Now with the option of furniture financing, you can shop with ease!
Let’s start by furnishing the living room, the centrepiece of the home. At La-Z-Boy, we offer a wide variety of stylish and comfortable sofas, sectionals, and recliners. You can take advantage of furniture financing at La-Z-Boy and experience instant relaxation today.
Come visit us at one of our local Ottawa, Gatineau and Kingston locations or book an appointment online to meet with a personal consultant.