Point-of-Sale Consumer Financing
- Retailers and service providers’ dependence on point-of-sale (“POS”) financing is growing as many consumers prefer the option of financing their larger purchases.
- POS financing is growing much faster than traditional unsecured lending with Millennials and Gen Z preferring installment loans over credit cards due to knowing when their purchase will be repaid and how much interest they will pay.
- More than 40% of consumers have non-prime credit, many of whom will not qualify for traditional bank financing.
- A relatively small, unexpected expense such as a car repair or a modest medical bill can be a hardship of many families, with 37% of adults reporting to have difficulty covering such an expense. – 2019 Federal Reserve Report
- The current financing models offered by POS non-prime lenders are often expensive and confusing lease-to-own agreements, or title loans and payday advances for unplanned essential services.
- Primary markets continue to grow, with Auto Parts & Service Repair ($106B), Furniture & Mattress ($67B), Pets & Veterinary ($60B) and Elective Healthcare & Dental ($65B).
- PayFina’s innovative platform assists the underserved needs of consumers with non-prime credit; filling the gap between prime and expensive subprime financing options with a vastly more affordable and transparent financing option than is currently available.
- Using traditional credit bureau and alternative data, PayFina delivers approvals that meet an applicant’s risk profile, so no longer will near-prime consumers be pushed down into expensive subprime programs.
- PayFina will offer POS financing nationwide using bank-sponsored installment loans, retail installment contracts and when appropriate, lease-to-own agreements to complete its full credit spectrum program.
- Loans range from $350-$5,500, typically 12-36 months, and APRs of 26%-179%.
- Consumer friendly features include a 100-day early payoff promotion, and reduced rates for repeat customers.
- Merchants and service providers benefit from a one-stop financing solution capable of accommodating most borrowers, resulting in high acceptance rates and increased revenue.
- PayFina’s mission goes beyond financing – it empowers customers to improve their financial wellness by providing free resources to improve their credit with tools such as credit monitoring and short, interactive financial educational courses.
Link Melley, Jr., Chairman & Co-Founder
Co-founded what would become a national furniture chain with 15 locations in 10 different states that specialized in “in house financing” in 1983. In 2004, launched Military Credit Services which specialized in purchasing retail installment sales contracts from competing merchants. Holds a master’s degree in business administration from the University of North Carolina at Chapel Hill – Kenan Flagler Business School and a bachelor’s degree in finance from The Catholic University of America.
John Melley, CEO & Co-Founder
Co-founded Freedom Furniture & Electronics. With the success of in-house financing, expanded to finance other retailers selling to military personnel. MCS’s portfolio grew to $77MM and was funded by a $50MM line of credit from Capital One Bank. Success in POS financing is due in part to extensive retail experience. Graduated with a bachelor’s degree in English from Saint Michael’s College.
Jeffrey Miller, President/COO & Co-Founder
Result-driven executive with 20+ years of experience developing and leading specialty finance companies. Most recently, spent 12 years growing EasyPay Finance, a non-prime point-of-sale finance company. Experience also includes building elective medical and merchant cash advance portfolios and establishing a bank sponsorship program to enable national expansion. Earned a Bachelor of Science in Quantitative Economics and Decision Science from the University of California at San Diego