Online Consumer Electronics and Appliances Financing Platform

This unique online finance company offers consumers the chance to purchase big ticket items, such as electronics and appliances, through a digital lending process. The company operates through multiple eCommerce websites, and customers can apply for credit online, browsing and buying with ease. Consumers take possession of the goods after buying on a rental or lease-to-own program, with funds coming from the company’s partnership with a bank. This niche provider’s customer base comprises low-income demographics and has seen YOY growth through a proven web marketing concept. With opportunities for diversification and scaling, this is an exciting business to invest in.

OPERATIONS

As an online finance company, the core operations of this business involve offering consumers a streamlined and convenient digital lending process through its multiple eCommerce websites. The company partners with a bank which allows for rapid loan funding and quick application approval. This business operates in a subprime market, offering lease-to-own purchase programs for big-ticket goods, such as electronics and appliances, with most products ready for same or next day pickup at large retailers. Thanks to this model, the company requires little overhead or warehousing, and operates with a small workforce of just one employee.

The company offers same-day pickup for most of its products at large retailers, including Best Buy, and items that are not picked up are shipped directly from the retailer to the customer. The online finance platform with no overhead costs and low inventory risk.

MARKETING AND KEY METRICS

This online finance company has a short marketing description as most of the customer acquisition comes through organic search and SEO. The company currently relies little on paid online marketing but has a potential to scale with paid advertising, social media campaigns, email marketing (the business has a contact list of over 40,000 opt-in emails), and expanding further into consumer product categories.

This business largely relies on organic search and SEO for customer acquisition, but there are ample opportunities for expansion through paid advertising and social media campaigns. The company currently has an opt-in email list of over 40,000, which could be optimized for driving sales.

The business offers over 500 SKUs with an average ticket value of $1,038. The customer retention rate is over 20%. The company requires no warehouses or overhead, and therefore, operates with a low cost of goods and high gross margins.

This unique finance company caters to a subprime market of lower-income customer demographics who require lease-to-own payment plans to purchase big ticket items. This niche customer demographic has seen substantial YOY growth, and the business’s model is well-suited to their demands.

BUSINESS MODEL & RESOURCES NEEDED

A minimal HR description is available as this online finance company operates with a small workforce of just one employee. The business has the potential to hire more employees and expand as the company grows.

THE INDUSTRY

This online finance company operates in the Consumer Electronics and Appliances industry, catering to a subprime market of lower-income consumer demographics who require a rental or lease-to-own purchase program plan for their electronics and appliances. With rising prices of core SKUs in the marketplace across the board, financing options offered by this company allow low-income customers to acquire a phone of their choice by paying for it over time. Due to its operating model, the business requires no warehousing or stock storage, emphasizing the providing of financial services and asset financing.

OPPORTUNITIES TO SCALE

There are multiple opportunities for scale and growth within this business. Ownership could expand paid advertising and marketing, move into additional consumer product categories, launch successful social media campaigns, or tap into email marketing. The company is already in a space all its own and is highly competitive, which means that scaling this company is a smooth transition that will bring great return on investment.

Asking Price: $625,000
Gross Income: $1,161,877
Cash Flow: $154,027
Year Established: 2013
Employees: 1

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Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

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