ACT on choosing a finance provider and avoiding the pitfalls #1

Following an increase of incoming calls querying finance providers in the cycles market, the ACT are publishing a mini-series to answer the trade’s questions, republished here on Cycling Industry News…

“We know that more customers are spending using retail finance as the latest figures from the Finance and Leasing Association (FLA) identify that UK consumers now spend nearly £800 million every month on goods and services using retail credit.

The cycle retail finance landscape is currently experiencing many changes; providers consolidating, a lack of funds meaning providers have had to close and providers withdrawing from the market. Some of these scenarios have left cycle businesses high and dry.

This series examines which options are best for your business and how to avoid potential pitfalls.

The importance of market knowledge

As the cycles finance marketplace is growing every year, now worth over £100m p.a., more and more providers turn their eyes towards it. This in turn brings finance products which are aligned closer to white goods and other products as opposed to bicycles and related accessories.

These providers tend to spare little thought for the end customer or the product that customer is buying.

Ensure your provider has experience in the cycles marketplace so that their finance solutions are tailored specifically for the IBD.

The ACT work in partnership with V12 Retail Finance to provide that all-important market knowledge and to ensure their finance products are just the right fit for the cycle trade – under the consumer-facing brand Ride it away.

A little bit of love for the bicycle trade

Take a look at all of the finance providers in the cycle marketplace and see if they are really invested in it.

Does your current provider adjust their standard requirements to enable IBDs to access finance? Most providers do not deal with smaller independents as their turnover is too low. V12 have always, and will always support IBDs.

V12 are clearly passionate about cycling, just take a look a the V12 sportive coming up in August or their continual support for the Cycle Show.

Looking after your customer

Remember you introduce your customers to a finance provider, if they get it wrong this reflects on your business and your ability to benefit from any recurring purchases.

Ensure your customers will get the best customer service experience they deserve.

V12 have just been awarded the Feefo Gold Trusted Service Award for providing superb customer service and best possible experience for all their customers.

Part 2 in the series coming soon!

If you have any queries about the Ride it away scheme you can find out more here or call the ACT on 01273 427 700.”