Our business model

Home credit will remain at the core of our business. We aim to grow and generate enhanced profit through increasing our geographic reach, expanding our existing customer base, introducing new products and channels and giving good-quality customers the opportunity to borrow more. We are also focussed on achieving greater operational efficiencies through expansion and reducing costs.


Our home credit model is cash and capital generative and we maintain a strong balance sheet. We are well-funded and the refinancing of our core Eurobond and bank funding in 2014 formed part of our strategy of attracting longer-term funding from diversified sources at lower cost. Successful delivery of our Strategy for Growth will generate sustainable profitable performance which will, in turn, increase further value and returns for our shareholders and enable us to reinvest in the business. It will also create value in the markets in which we operate through employment, tax and community support initiatives.


We offer unsecured, short-term cash loans to people who want to borrow small sums and repay weekly in manageable and affordable amounts. Customers can repay by money transfer to a bank account or through our optional home service delivered by our network of 30,000 agents. In Mexico, the business model includes the home service for all customers.

The total amount payable comprises the loan amount and the charge for credit and other services, which is generally fixed at the outset of the loan. Customers like the convenience of arranging loans and making repayments in their own home and value the fact that there are no extra charges for missed or late repayments with the home service option. The discipline of the weekly agent visit also helps customers repay regularly and reduce the risk of falling behind on their repayments.

A typical customer is underserved by mainstream lenders and may be taking a loan from a financial organisation for the first time. If they have taken credit before they may have used store credit or borrowed from friends and family. They have average to slightly below average incomes, are looking to borrow money for a specific purpose and do not want to borrow more than they need.


Responsible lending is at the core of our business model.

Agents are rewarded largely on the amount of money they collect rather than what they lend, so it is not in their interest to lend more than their customers can afford to repay.

Credit risk is based around the relationship between customers and their agents, supported by bespoke application and behavioural scoring systems.

We are also introducing the use of credit bureaux to improve our lending decisions.

We only lend to customers who can prove they have a regular, secure income and can afford their repayments. Our ‘low and grow’ approach to lending ensures new customers start with a small loan. Only when they have demonstrated their ability and willingness to repay will we offer a larger amount, if they require it.


Understanding our customers and the strong personal relationships between our customers, agents and Development Managers is at the core of the business model. Agents are responsible for developing and maintaining good relationships with their customers and growing their agency. The weekly, face-to-face contact with customers distinguishes us from most other financial service providers and this is key to customer retention and growth. It helps us understand our customers’ circumstances and allows agents to assess new loan opportunities for good quality, profitable customers.

Our Development Managers meet regularly with their agents to provide support and guidance on growing their agency.

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