Pay4Later, this week launched a new service for holiday and travel companies following strong demand from firms wanting to offer credit to customers.
The new service enables firms to offer their clients a choice of attractive finance options – including 0% interest – ranging from £275 to £25,000 and over terms of six, nine and 12 months.
Customers have the option to start paying for their holiday as soon as they book it through the Pay4Later service and spread the cost to suit their finances once they return. Applications will take less than 10 seconds to complete and all those made via Pay4Later’s platform involve ‘soft’ credit searches, meaning a customer’s credit rating will not be affected.
There seems to be plenty of appetite for this service with new research revealing that around 14.21 million adults who have been on or booked holidays this year put all or some of the cost on credit. On average they spend around £1,130 on credit taking total holiday spending on credit to more than £16.1 billion.
Borrowers expect to clear the debt on average after four months, the research shows. However 11% of adults paying for holidays on credit say it will take them a year or more to clear the debt.
A spokesman for Pay4Later said: “As a nation, we are taking more holidays and trips abroad than ever before. Analysis of government data reveals that we took 60 million trips abroad in 2014, 4% more than in 2013.
“By offering customers credit, travel companies could see a huge increase in sales. Our data shows that retailers who offer credit can see sales rise by up to 40% and order values by 300%.”
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