Our business model

Our home credit model is a long-established, resilient and profitable business model that has been operating for 130 years.

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Growth

Company

Small sum, short-term, unsecured cash loans
Focus on emerging markets
Responsible lender
Inclusive and transparent

Our business model has been operating for more than 130 years and is well established, resilient and profitable. We operate in emerging markets where demand for credit is growing and markets are relatively underserved.

There are two core elements to our home credit offer: a small-sum, short-term unsecured cash loan and an optional home collection service provided by dedicated agents. Customers can also choose to repay their loan by money transfer to a bank account.

Most loans are between £200 and £500 and repayable between 6 and 12-month terms. Typically we can deliver a loan within 48 hours from first contact.

Home credit is different from other financial products because of the high level of personal service provided by our agents. They visit our customers weekly in their homes to undertake credit vetting, provide loans and collect repayments.

Many of our customers have limited access to credit: we are helping to include them in the financial mainstream in a responsible way.

Meeting needs

Customer

Small cash loans
Fast friendly service
Home delivery and repayment collection
Optional bank transfers repayments
Manageable and flexible repayments

Our customers want to borrow a small amount of money, quickly and in a manageable and transparent way. They do not want to borrow more than they need.

Customers use their loans to manage their weekly household budget, replace or upgrade domestic appliances, meet school or medical expenses and make special purchases such as Christmas presents and holidays.

The households we serve have average to slightly below average incomes. Our customers are generally between 35 and 65 years old and about 60% are women. They are employed or have a regular, secure income from self employment or pensions.We do not lend to customers whose only source of income is unemployment benefit.

Many new customers have no credit history or may be taking a loan from a financial organisation for the first time. Those who have used credit before may have used store credit to purchase household items or borrowed from friends and family.

Our customers appreciate the fast, convenient and friendly home service our agents provide. The agent calls at the same time every week and saves them having to travel to a bank to make repayments. Our customers also take comfort from knowing that when they choose the agent service, the amount they owe does not increase even if they miss a repayment.

Personal service

Agent

Personal service
Face-to-face credit vetting
Weekly customer contact
Responsive to changing circumstances

Our agents help us take a distinctive personal approach to lending compared to remote lenders. They are the public face of our business and build close relationships with customers through their weekly home visits.

More than two-thirds of our agents have been, or still are, customers; they often live within the area in which they work. This means they are more likely to know new and existing customers and understand their needs, and enables them to provide the best possible service and flexibility to our customers.

Over 65% of our agents came to work for us through the referral of another agent. More than 80% of agents are women and the majority are between 30 and 45 years old.

Agents visit new and established customers in their home to undertake credit vetting, provide loans and collect weekly repayments. Regular home visits also enable agents to monitor a customer's circumstances and be responsive to situations which may lead to missed repayments.

Agents are paid predominantly on the value of their collections rather than the value of loans issued to customers, which supports responsible lending.

Growth

Company