Consumer credit boom in 2014
Posted on in Cycles News , Outdoor News
Consumer credit growth has shown consistent signs of growth in 2014, for the first time since before the financial crisis, according to a market report from Timetric.
This is in a large part due to consumer confidence also recording a positive number for the first time since the credit crunch, low interest rates and a steadily growing GDP, as nearly every category of lending has grown up to July 2014.
Demand for and availability of credit also grew in both the second and third quarters of 2014, which has been a key factor in this growth.
The growing demand for consumer credit was highlighted even further in October, when lending to consumers rose by a faster-than-expected 6.4 percent, its most rapid annual pace since July 2006, the Bank of England said.
"Consumer credit, which is probably a better signal of consumption momentum that mortgages for house purchase, continues to rise strongly," said Rob Wood, chief UK economist at Berenberg Bank.
While cheaper borrowing costs have helped to finance big purchases, Howard Archer, chief UK and European Economist at IHS Global Insight, added: "It also may well be that a significant amount of people are borrowing more due to the squeeze on their purchasing power coming from extended low earnings growth."
The Office for National Statistics said household spending rose at its fastest pace in four years in the three months to the end of September, as the UK economy expanded by 0.7pc.
Prepare to offer consumer credit in 2015
With demand rising, now is the time to join the growing Ride it away and Take it outoodrs retail finance network, giving your customers the opportunity to purchase the products and accessories of their dreams by spreading the cost with as little as 0% finance.
Did you know? There are currently over 750 retailers offering finance through the Ride it away and Take it outdoors schemes, accounting for £60m of new sales every year!
Ride it away and Take it outdoors is available to any cycles or outdoor business who benefit from:
- Free V12 set-up worth £495
- Personal support throughout the application and FCA authorisation process
- No minimum finance turnover requirement
- Payment issued by V12 same day and in your bank within 4 days
- National promotion on the Ride it away and Take it outdoors consumer websites
- Access to FCA compliant POS material
- Access to web banners for use on your own website
Click here for more information about the Ride it away scheme
Click here for more information about the Take it outdoors scheme
What next?
Click the links above to find out more and request your free application pack or contact us on 0845 618 7256