Before diving into the lease-to-own (LTO) segment, consider these figures:
- Nearly half of Americans are categorized as having subprime or near-prime credit scores.
- 75% of Americans live paycheck to paycheck, and the average American doesn’t have more than $400 in savings.
- 66% of retailers in categories like furniture, appliances and electronics do not have a non-prime solution for their customers.
How can these statistics help you grow your sales? You may believe your customers do not need a no-credit option. However, you are likely missing out on sales. If you are part of the 66% who do not offer non-prime credit solutions, many customers will simply avoid shopping your store because they are not sure if they can get approved for credit. No-credit-needed products offer consumers who have less than prime credit or those with no credit a more dignified and affordable customer experience.
“We consider LTO customers as found business, incremental business that we would otherwise lose,” Rick Urban, CFO at Olum’s of Binghamton, a UOwn retail partner, told us. “Olum’s noticed customers visiting our store and wanting to buy but walking out the door because they could not secure financing through primary/traditional partners. So we added LTO, and we’ve experienced great success. Now word has spread in the community, and we are noticing referral business as well.”
Nationwide’s programs with American First Finance, Kornerstone and UOwn offer customers the ability to apply anonymously via text message or an online application. Customers receive an approval via text or online, so they can enter your store pre-approved and shop with confifidence. The application process is quick and seamless, allowing your store employees to stay focused on selling.
Nationwide can now offer more non-prime finance solutions in nearly all product categories, in all 50 states and to customers that were once ineligible for these types of purchase options. Nationwide’s programs offer high approval rates, high approval amounts and low down payments, all at no cost to you. All three of Nationwide’s vendors offer benefifits exclusive to Nationwide Members.
By offering a no-credit-needed program, you can expand your customer base. That’s because no- credit-needed helps not only credit challenged customers but also customers without credit. Remember, 50% of Americans cannot afffford $400 if unplanned purchases must be made.
Still unsure? Maybe this comment from Al Sepulvado of Ivan Smith, another UOwn retail partner, will help: “We have been offering LTO to our credit challenged customers for the past four years, and we have seen a significant growth in sales volume in this segment,” he says.
To learn more, visit MemberNet > Services > Financial Services.
Megann McDaniel is director of financial services for Nationwide Marketing Group.