More than £10million of loan approvals managed by Consumer Credit Solutions
According to Consumer Credit Solutions (CCS), it managed more than £10million (£10,051,029) worth of loan approvals in one week for retailers in the home improvement and renewables sector.
According to the finance provider, it is the first time in the company’s 15-year history the business has exceeded £10million in one week.
Managing partner of CCS, Andy Wallace commented: “It’s a positive sign, as our industry in known to be a very good barometer for the economy as a whole. We’re deadling with home owners who are looking to improve their properties and the fact they’re spending money on high value purchases is a good indicator that people have more confidence.”
He continued: “To achieve this level of approvals in unprecedented, because typically July and August are quieter months. Even though it’s not a true quarter, the upcoming trading period of September, October and November are traditionally the strongest period of the year across the home improvement sector. So given that business is so buoyant in the summer months that makes us extremely confident for the rest of the year and into 2015.”
However, he also attributes the recent increase in loan approvals to a change of approach by some retail partners. Wallace added: “We’ve been very successful in persuading retailers to move away from traditional high interest finance with commission for sales representatives, to ‘soft sell’ finance – such as low rate, buy now pay later and interest-free credit. ‘Soft sell’ finance has had a real impact on the amount of credit being sold and it’s very popular with consumers.”
He concluded: “This approach is now starting to have an impact on overall results, and it’s actually increased the number of people buying on credit. And when people use credit, retailers typically have fewer cancellations, receive higher order values, and increase sales volume.”