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Consumer Lease Financing with Terrace: How It Works

For many consumers, the purchase of a medium to big-ticket item can be challenging to afford all at once. A lease is an appealing alternative for customers who are looking to pay over time for a product. Leases offer lower interest rates than most credit cards, and cover purchases for items that banks don?t deal with such as furniture or jewelry. The consumer lease programs offered through Terrace Finance result in ownership of the item at the end of the finance term.

The Terrace Finance lending platform was created to streamline the confusing process of comparison shopping to find the right finance option for your purchase. Terrace has assembled a network of lenders curated to cover customers of all credit levels, an array of specialized products, and purchase amounts from $200-$15,000. Since Terrace is not itself a lender but represents multiple lenders, customers have a greater chance of being approved for the things they need or want to purchase.

With one application and a soft credit pull, you will be matched to a lender based on your credit profile and unique needs. If that lender turns down your application, it gets automatically re-routed to the next best match with no extra effort on your part. The pre-approval process is instant in most cases but can be monitored through our portal if you?d prefer. It?s also free!

The Application Process, Step-by-Step

STEP 1

Decide What to Buy — Sounds obvious, but leases are for specific items or groups of items. In that way, they are different from loans for a lump sum that can be used for anything.

Leases can be used for purchases of many kinds of consumer products through Terrace Finance, as long as they are not perishables, consumables, or permanent accessories such as engine parts or a permanent fixture to a home such as flooring. Although we have a growing list of merchants offering Terrace finance in their stores, you are not limited to those alone. We will work with any store or on-line retailer to complete your purchase. 

If you know the item you want, such as a specific brand and model of lawnmower or appliance, but don?t know where to buy it, the Terrace team can help you shop by matching you with a dealer as well as a lender. To start the application, you just need to have an estimate of the general cost of the item.

STEP 2

Begin the Application — By clicking on APPLY NOW on terracefinance.com, you will be taken to the Terrace secure application and prompted to give some preliminary information:

  • The type of application (consumer)
  • The type of financing (Asset Lease — a fancy name for ?Lease-to-own?- it means the bank pays the merchant directly and you pay the bank back in installments for a specified term)
  • Market category of your item — (i.e.- appliance) If your item doesn?t fall into any of the over 20 categories in the drop-down list, it may still be eligible. If in doubt, call the Terrace customer service line at 888-509-1370 for confirmation.

Terrace Finance has relationships with a growing list of retailers and manufacturers who offer financing through the Terrace Finance platform. Later in the application, you will be asked if you are applying through a participating merchant partner. Active merchants can be found through our merchant locator. Remember, you may still apply for financing even if your preferred merchant is not a member.

STEP 3

Submit Documentation — The next screen will ask you to submit the following information:

  • Name/Address/Phone
  • Birth Date
  • Social Security Number
  • Driver’s License or State ID #
  • Name of your bank/ Month and year account opened/ State
  • Bank routing number
  • Employment info: date started/ net take-home pay
rounting number location on a check
paycheck example
  • The approximate cost of the item you wish to purchase
  • Priorities — You will be asked to pick your top 3 most important considerations from a list including things like Interest Rate and Length of Term.

When complete, you will be asked to consent to Terrace checking your credit (through a “soft pull” which does not impact your credit rating) and sharing your information with lending partners for the purposes of the application.

STEP 4

We Match You With a Lender (and Merchant if Needed) — Now the Terrace Finance intelligent decision engine goes to work. The lender best matching your criteria will be presented to you within minutes.

If you didn’t already have a merchant in mind at the start of the application, the Terrace team will contact you and do it?s best to match you with one now. If you do have a retailer in mind, but they are not part of the Terrace network, the Terrace team will work with them to become authorized to complete the purchase. Simply supply us with their contact info.

You can complete these first steps from home so you can shop knowing your buying power, or do the whole process at point-of-sale in a participating retail location. If you are already working with one of our merchant partners, you?re almost done!

STEP 5

Complete the Financing — With a merchant in place and an invoice for the purchase submitted to the lender, the lender will present its offer of financing to you. Denials are rare after pre-approval- the number one reason it sometimes happens is due to inaccurate information entered in the application. Lenders confirm things such as income, so it?s important to be accurate on the application.

Read the lender terms and policies presented to you carefully before accepting. Lenders on the Terrace Finance platform are required to be transparent and clear about the terms of the financing they offer you. If there is anything you don?t understand, then call us at 888-509-1370. Our team is here to help!

When you accept a lending offer, the merchant is notified instantly so you can take your purchase home immediately.

Having made the match, Terrace?s work is complete! You will deal directly with the lender for the length of the lending agreement.

To begin the process of buying what you need today, visit terracefinance.com to get started.