Business model

How we operate across our products and services

All the businesses within our group have a common approach and focus on the non-standard credit market, while also adapting what they do to closely suit the needs of their particular customers.  


How we create value

Secure longer-term, lower rate funding

  • Borrow long and lend short.
  • Maintain diverse range of funding sources.
  • Maintain borrowing facilities to provide headroom for the following 12 months.
  • Investment grade credit of BBB with a stable outlook.
  • Strong relationships with core banks.

2: Develop tailored products to meet customers’ needs

  • Provide financial access for those who would be otherwise financially excluded.
  • Simple, transparent products.
  • 136 years of serving non-standard customers.
  • High levels of customer satisfaction.
  • Specialist business model.

3: Attract target customers

Typical customer:

  • Mixed employment status.
  • Low to average incomes.
  • Limited indebtedness.
  • Live in rented accommodation or social housing.
  • Average age of between 25 and 50 years old.

Channels to market:

  • Multi-channel approach – Business to Consumer (B2C), Business to Business (B2B).
  • Strong brand loyalty.
  • Marketing expertise.
  • Broker relationships.

4:  Assess affordability and credit worthiness

  • Bespoke underwriting developed over a number of years.
  • Use of external bureau data to supplement in‑house data.
  • Leading-edge technology.
  • Strong data analytics based on long history.
  • Specialists in assessing non-standard consumers.

5: Lend responsibly

  • Small-sum, short duration.
  • ‘Low and grow’ approach to lending.
  • Starting customers on low amounts before growing lending as customers demonstrate they can manage repayments.
  • High standards of regulation and compliance.
  • Affordable weekly/monthly repayments.
  • No hidden charges.

6: Collect repayments due

  • Maintain regular and close contact with customers.
  • High-tech contact centres.
  • Experienced and well-trained collections teams.
  • Multiple methods of repayment.
  • Compliant remuneration arrangements for contact centre staff and commission policies for home credit agents.

7: Manage arrears and customer difficulties

  • Regular contact and ongoing dialogue throughout the customer journey.
  • Multiple forbearance methods.
  • Sympathetic approach.

8: Pay for funds and generate surplus capital to deploy

  • High ROA businesses generate surplus capital.
  • Distribute 80% of earnings in dividends.
  • 20% equity retained sufficient to fund future growth in receivables.
  • Maintain low level of gearing at 3.5 times or below.