DivideBuy, the LendTech company, has opened its interest-free credit solution up to online retail businesses with upwards of £100k annual turnover in a bid to help these smaller retailers attract customers during and beyond the coronavirus outbreak.
Robert Flowers, CEO of DivideBuy.
Many smaller businesses are struggling as a result of the virus, with in-store operations being shut down, staff being furloughed, and profits declining – or ceased completely. Currently, when consumers are worried about their own cashflow, both consumers and smaller retailers need support.
DivideBuy announced its plans to expand out its eCommerce interest-free platform to enable customers to split up their payment with smaller retail sites over a series of months. It hopes that this payment option will allow consumers to continue to make they purchases they need while encouraging spending with smaller retailers – easing the financial burden through this economic crisis, as well as creating a new opportunity for business growth.
While consumers are encouraged to spend with smaller businesses, DivideBuy strongly advocates ‘responsible lending’ to ensure consumers are always protected throughout the credit process. As such, it runs full affordability checks to confirm that the customer can afford to pay for their purchase in instalments before they can make a credit purchase.
Robert Flowers, CEO of DivideBuy, commented, “The crisis we are currently facing affects us all, and we all need to do what we can to aid the national economy and protect those we can who are vulnerable. Our hope is that smaller retailers will benefit from offering their customers the chance to split up payments at this time, and that large value items will remain accessible to consumers – enabling them to buy what they need when they need it, with the option to pay later.”
In a further attempt to ease the burden for small retailers, DivideBuy will be offering an initial payment holiday on the small subscription fee it typical charges and reduced rates for the first three months in partnership.
Robert continued, “We’re here to support smaller retailers for the short-term and help them grow in the longer term. Perhaps enabling them come out of the crisis stronger because of it.”