Pay4Later: Most retailers expect growth in customer finance packages
Two thirds (66%) of motor retailers expect sales via customer finance packages to rise by 2017, a survey by UK point of sale credit provider Pay4Later has found.
Out of 90 retailers interviewed last October, 36% thought that sales of these products would increase by over 10% in this period.
Increasing efficiency and speed in the process of offering credit to customers was identified as the main reason for the potential growth of retailer finance packages.
This was followed by people being more willing to take out credit (44% of retailers said this) and more credit being made available to them (the view of 25% of retailers), especially through the rise of new and alternative lenders.
New software platform
Pay4Later has also launched a new point of sale finance software, Version 2, which was released to its retailers across the UK.
The company hopes that through the new platform credit acceptance rates will increase by up to 20%.
Customers using Version 2 have up to five chances of being accepted if they failed a credit score. Those initially rejected at a certain interest rate can be offered a loan at a higher annual percentage rate (APR) by the same lender or credit from another lender.
In addition, Pay4Later claims that the new facility’s credit application process takes less than 10 seconds.