Overview
Acima Credit is a prominent player in the financial services industry, specializing in lease-to-own financial solutions. Based in Sandy, Utah, Acima operates extensively across the United States, offering no-credit-needed financing through a broad network of retail partners. This inclusive approach allows consumers, irrespective of their traditional credit standings, to procure essential goods, thereby expanding their purchasing opportunities.
Business Model and Solutions
Acima leverages a technology-driven platform to facilitate its point-of-sale leasing services. The company's proprietary lease-to-own program effectively connects retail partners with consumers, fostering e-commerce growth by providing viable purchasing alternatives. The flexible lease options offered are designed to enable eventual ownership, which enhances customer satisfaction and retains retailer loyalty. Acima's service offerings span several categories, including furniture, electronics, and automotive products.
Financial Information
To support its operations and ongoing growth, Acima secured US $125 million in debt financing from Comvest Credit Partners in June 2018. This capital influx highlights investor confidence in Acima's market viability and its strategic business model, aiming to extend its market reach and refine its service offerings.
Corporate Culture and Workforce
Acima is acclaimed for fostering a positive workplace culture, with 91% of employees considering it a great workplace, as reported by internal surveys. The company employs approximately 474 individuals across the U.S., predominantly Millennials who make up 76% of its workforce. With 66% of employees having less than two years of tenure, Acima benefits from fresh perspectives and potential for growth within its ranks.
Leadership
Key figures in Acima's leadership team include Brandon Delgrosso, noted for his extensive experience in sales, marketing, and strategy spanning over two decades. Another prominent executive, Mitch Fadel, frequently participates in industry discussions on consumer payment and leasing trends, indicating Acima's proactive role in steering industry developments.
Strategic Initiatives and Events
Acima actively bolsters its market presence by participating in major industry events such as the High Point Furniture Market and the SEMA Show in Las Vegas. Through these engagements, Acima showcases its innovative leasing solutions and explores partnerships with merchants and retailers, emphasizing its commitment to business growth and innovation.
Competitor Profile
Major Competitors
1. Kafene: A key competitor in point-of-sale financing, specializing in flexible lease-to-own programs for diverse credit profiles. Kafene utilizes advanced AI and machine learning to optimize services, achieving over $100 million in sales in a brief period.
2. Zip Co: An Australia-based digital financial services entity with a large customer base and operations in several countries, including the USA. Zip Co caters to 6 million active customers, handling transactions worth A$10.1 billion.
3. Klarna: A Swedish global payments and shopping service, offering multiple financing options such as direct payments, post-delivery, and installment plans. Klarna serves 85 million active global consumers across numerous countries.
4. Afterpay: Part of Block, Inc., Afterpay offers "buy now, pay later" services, with 24 million users globally and a transaction volume of US$27.3 billion, having substantial foothold in key international markets.
5. Snap Finance: Based in Salt Lake City, Snap Finance offers digital point-of-sale and virtual rent-to-own financing solutions, serving over 3 million customers with its extensive reach.
Additional Potential Competitors
- Sunbit, Sezzle, Katapult, Progressive Leasing, American First Finance, and others compete within the evolving domain of lease-to-own and point-of-sale financing markets, each providing distinct solutions to enhance consumer purchasing power.
Analytics and Insights
- The sector features intense competition as companies incorporate technological innovations to improve efficiency and customer experiences.
- AI and Machine Learning: These technologies, embraced by companies like Kafene, are pivotal in crafting tailored lease agreements and minimizing credit risk.
- Geographic Reach: Competitors like Zip and Klarna exploit substantial international operations, offering diversified growth avenues and resilience to localized economic fluctuations.
Strategic Positioning
Acima Credit's strategic advantage lies in its comprehensive leasing model that addresses a wide consumer demographic, particularly those not serviced by traditional credit systems. By focusing on customer acquisition and utilizing cutting-edge technology to refine risk models, Acima positions itself distinctively within the financial services landscape, amidst fiercer competition from broadly operational financial entities.
