Record loan approvals in August reported by finance provider

Consumer Credit Solutions managed loan approvals of £10,051,029 in loans for the week commencing 18^th August.  CCS is the UK’s leading finance provider to the Home Improvement and Renewables sectors, and it’s the first time in its 15 year history the business has exceeded £10m in just one week.

CCS Managing Partner Andy Wallace said: “It’s a positive sign, as our industry is known to be a very good barometer for the economy as a whole. We’re dealing with home owners who are looking to improve their properties, and the fact they’re spending money on high value purchases is a good indicator that people have more confidence.”

“To achieve this level of approvals is unprecedented, because typically July and August are quieter months.  Even though it’s not a true quarter, the upcoming trading period of September, October and November are traditionally the strongest period of the year across the home improvement sector. So given that business is so buoyant in the summer months that makes us extremely confident for the rest of the year and into 2015.”

Mr Wallace also puts the recent increase in loan approvals down to a change of approach by many retail partners.  “We’ve been very successful in persuading retailers to move away from traditional high interest finance with commission for sales representatives, to ‘soft-sell’ finance – such as low rate, buy now-pay later and interest free credit.  ‘Soft-sell’ finance has had a real impact on the amount of credit being sold, and it’s very popular with consumers.”

CCS has also been proactively encouraging retailers to ensure customers are treated fairly at the point of sale and are fully informed about credit. This includes training sales teams to offer every payment option to all customers, including cash and finance.

“This approach is now starting to have an impact on overall results, and it’s actually increased the number of people buying on credit.  And when people use credit, retailers typically have fewer cancellations, receive higher order values, and increase sales volume,” added Mr Wallace.