*Credit programs are provided by federally insured, federal and state chartered financial institutions without regard to race, color, religion, national origin, sex or familial status. 

‚ÄčNearly 100 million Americans have less than perfect credit!

SECONDARY SALES FINANCE is for those customers somewhere between primary finance and lease purchase!  Don't leave them out!

Credit customers shop payments!  It's the merchant's objective to make the sale and turn it into repeat sales as quickly as possible.  Providing the credit customer a more favorable finance option can typically accomplish this objective, over lease purchase.   

Lease Purchase ("LP") is a tertiary product, and very effective for those credit challenged customers with no credit or those not so creditworthy.  It helps the merchant close the sale and serve a difficult consumer segment.  While payments are usually spread out into bi-weekly, or even weekly, by the end of the month the customer still has a high cumulative payment.  High LP payments is due to the lease multiple, which has a similar effect as an extremely high APR.  Advertising LP can also be tricky;  The merchant probably wants to avoid becoming or being known as a "rent-to-own" store.  Most everyone in the industry is now aware of the FTC scrutinizing the consumer LP disclosure processes at the store level.  Making sure store personnel are trained properly will be critical moving forward.

Secondary financing will provide the best lending options for near-prime customers, with revolving charge or closed-end, Same-As-Cash or even deferred payment options.  Moving from a primary decline directly to LP could offend the near-prime buyer, which is approximately 25% of the primary lender's declines.

Special attention needs to be given to LP in consideration of our current times, COVID-19 and the millions still unemployed. LP burst onto the scene during the 80's recession and has thrived during downward economic conditions.  Look for it to become an essential option for the merchant and consumer during our recovery period!  One of the virtual LP's challenges will be their ability to absorb and manage consumer returns.

Offering a complete financing menu of primary, secondary and lease purchase should assure the merchant of more sales success!