test.com - bad credit master card


Menu



Google



Available credit: finance houses are doing all they can to make credit transactions as quick and painless as possible. Richard Way reports on the latest offerings from the top players

Richard Way

OPEN+DIRECT

Belfast based finance company Open + Direct has improved its customer proposition with the launch of a credit system that makes transactions as swift as a credit card. Going by the name of Easicredit, the key to this new system is its ability to offer almost instant approvals at point-of-sale, as well as provide increased management information.

It also boasts one of the most popular features of the company's previous Internet approval system, namely an "available credit" figure at the retailer's fingertips, something which helps retailers to up-sell consumers within their credit limits.

"When we developed Easicredit, we felt it was crucial to create a system that would be user friendly, deliver credit approvals in seconds, reduce administration and in addition, enable easy up-selling," says Steve Penistone, sales and marketing director at Open + Direct.

"By showing a total credit figure for the customer of up to 5,000 [pounds sterling] (subject to status), our retailers' sales staff are ideally placed to up-sell their customers

"Our system is unique in that aspect and reflects Open + Direct's holistic approach to its retail credit business."

An XML integrated p-o-s system, Easicredit can be integrated into retailers' existing p-o-s system and staff can be trained on how to use it in minutes, says Open + Direct

The company has also been busy on the logistics front Growth since its launch in 1999 has led to a need for larger premises and last month it moved into new premises in Belfast A recruitment drive is expected in 2004.

This year, though, has also seen the introduction of Open + Direct's retailer enhancement programme.

This offers a way for retailers to improve their support package through services such as mystery shopping, customer profiling and dedicated sales training. More features will be added to this package next year.

Says Mr Penistone at Open + Direct: "In the past eight months, Open + Direct Retail Finance has experienced incredible growth in all its core markets.

"As we enter the fourth quarter of our financial year, the growth is continuing unabated. One of the major reasons for that growth has been our reputation for superior service levels and it is extremely important for us to maintain and improve upon the services we provide to our retail clients."

Among the names that Open + Direct has signed in the past year are Npower, Retra, Sony Centres (Ireland) and Laser.

V12 FINANCE

A new system from credit solution provider V12, which allows retailers to offer finance terms over the Internet, has been adopted by electrical retailer Jones of Oakwood. The installation of V12's application portal in the retailer's stores means that consumers can now receive a completed electronic credit agreement--once agreed--via their own PC, thus reducing time spent on administration.

The customer then just has to sign the agreement and send it back to Jones of Oakwood, who will send out the product.

"We are delighted to offer our customers an efficient seamless and integrated retail finance solution no matter how they choose to shop with us, whether in store, on-line or by telephone", says Chris Fisher, sales director of Jones of Oakwood (pictured).

Richard Castello, sales and marketing director at V12 comments: "In a very crowded, competitive marketplace our wide-ranging suite of credit products, available 2417, 365 days a year will enable Jones of Oakwood to seize every opportunity to attract business from new and existing customers."

Recent market research carried out by V12 indicated that despite initial apprehension, the majority of consumers prefer to pay for their on-line purchases using promotional credit if the process is quick, secure and without fuss.

These findings support the company's Internet-based credit term solution, which comprises 'downloadable' agreements which the consumers print off, sign and return to V12.

Concludes Richard Castello: "Quite simply, we believe nothing should stand in the way of customers getting what they want, when they want it. We provide our retailer customers with a seamless, integrated and consistent approach to enable their customers to buy whatever they want, whenever they want, whether it be in-store, via mail order or over the internet

"We are an e-commerce business specialising in retail finance, not a retail finance business dabbling in e-commerce. Fortunately, we have no Noah's Ark legacy systems or past baggage to hinder our progress. This has enabled us to provide our retail customers with bang up-to-date technology solutions to fit current trading conditions."

Another electrical retailer that uses the same system from V12 is on-line store greatsaves.co.uk

BLACK HORSE

Creating a credit package that is a win-win-win situation for customers, salespeople and retailers alike is what Black Horse Retail Finance is claiming to have produced with its Take It Easy promotion for Panasonic.

"It's a belter of a deal for the customer," enthuses Graham Field, director of retail finance at Black Horse.

"The customer pays nothing for six months. But the Panasonic promotion, at a rate of 6.9%APR, is not only competitive with the best personal loan rates but, more importantly, is a lower APR than the one the vast majority of customers will be paying on their credit cards."

Mr Field believes this will mean that retail salespeople can confidently offer the Panasonic promotion, which has been launched in time for the Christmas rush, as an alternative to customers considering payment by credit card.

The good news for the retailer with Panasonic's new promotion is that any credit deal that is processed via the Panasonic B2B system will earn the dealer 3% commission of the balance financed.

"This rises to 5% if PPP insurance is sold with the agreement," adds Mr Field.

Salespeople have only three simple fixed instalments on the Panasonic promotion to remember, as Mr Field explains: "Customers merely opt to pay 39.99 [pounds sterling], 69.99 [pounds sterling] or 99.99 [pounds sterling] a month.

"That simplifies life for the salesperson who merely looks up the duration of the agreement based on the instalment the customer chooses and the deposit they've paid."

To support the Take It Easy promotion, Panasonic and Black Horse have produced an attractive range of point-of-sale material, procedural guides and calculators for salespeople.

"This Christmas Panasonic dealers are going to have access to a credit promotion they can really use to help them sell audio visual products," promises Mr Field. "But, unlike the usual free credit promotions or credit cards, this promotion is going to increase their margins."

FIRST NATIONAL

Sonex Communications has increased its consumer credit penetration in its Sony stores to 20% from 10% thanks to its collaboration with First National Tricity Finance. The two companies have worked together over the past two years to introduce point-of-sale credit solutions that sales staff find easy to use and understand. Key to the success of this partnership has been the excellent business relationship Sonex has with First National, say the companies.

David Goldring, general manager at Sonex Communications. says: "We only use Interest Free Option (IFO), which First National is excellent at. I think it is more important to get your core offering right rather than have to worry about a range of credit products. Having one product makes it easier for the staff to understand too.

"Our relationship with First National is conducted through David Murphy, our account manager, and his level of service is always superb."

Nicole Home, director of marketing at First National, concludes: "We are delighted at the success of Sonex in improving their credit penetration to increase sales. Point-of-sale merchandising is extremely important and Sonex, with promotions such as Go Finance and Go Create, has reminded staff and customers alike of the availability of credit at the point of sale. This ensures that the customer buys the product that they really want."

HITACHI CAPITAL

Hitachi Capital has redesigned its sales team and introduced a training package for retailers, two strategic moves introduced in the past six months aimed at helping retailers make the most from its credit solution products.

The finance company has split its sales team by sector so that each sales person now only works within one retail market, rather than across the spectrum of markets covered by the company.

Peter Leonard (pictured), head of sales at Hitachi Capital, comments on the moves: "Those that work in the electrical sector now only deal with electrical retailers, so it gives them the ability to build their knowledge up of that market, rather than trying to cover six or seven markets at the same time.

"Retailers thrive on the information that you give them and this way we should be able to advise on what products are doing well in the marketplace."

The decision to introduce a special training and development team came about through the need to ensure retail staff could clearly inform their customers about the credit options available to them.

"For around four months now we've had a special training and development team to help retailers," says Mr Leonard. "What the team does is pass assistance across to all the retailers, whether that be a one-on-one basis or a group basis, or regional.

"The aim is to make sure that all information on all products that they're using is known and they're offering it in the correct way.

"We're always relying on a sales person at the point-of-sale to rightly inform the customer how the credit product works."

Retailers can also benefit from the training package by learning how the different types of credit products can protect their margins.

Says Mr Leonard: "It's all about using credit to either up-sell and grow your margins or protect them by using a product that doesn't take so much of their margin away. The margins are so tight in the electrical market that we also look at additional products which can protect them."

COPYRIGHT 2003 DMG World Media Ltd.
COPYRIGHT 2005 Gale Group