Crelogix to offer consumer credit program in Canada
Michael J. Knell -- Furniture Today, June 12, 2013
BURNABY, British Columbia — Consumer finance provider Crelogix will enter Canada's furniture, mattress, major appliance and electronics sector with an installment credit program for consumers and has named a familiar figure, Bob Pattison, to lead its efforts.
Pattison joined the Canadian financier last month as managing director of its new consumer durables division.
He has worked for more than 22 years in business development, sales management and financial services. Before joining Crelogix, he spent 10 years as vice president of national accounts at GE Capital, specializing in the consumer electronics, appliance and technology industries as well as furniture and mattresses. Earlier, he worked for Deutsche Financial Services and CIBC Finance.
"Bob is a well-seasoned leader and we are happy to have him join Crelogix. His extensive financial experience and knowledge of the consumer durables industry is a tremendous asset," Crelogix CEO Karl Sigerist said in a statement.
Founded in 1974, Crelogix describes itself as a "business friendly" specialty finance company.
"We are business friendly because we create the lowest cost and most convenient sales finance programs, structured to help our partners attract and retain more customers, close more sales and increase their overall profitability," Pattison said, adding that the company is active in a number of sectors.
Even though big ticket store sales have been challenged over the past couple of years, Pattison believes home goods are a good fit for Crelogix's growth strategy.
"We see a niche market within the furniture and appliance industry for a new financial product that people need," he said. "We believe we can offer retailers an additional sales tool that will allow them to increase the average sale based on low monthly payments."
His initial focus will be on independent retailers and the buying groups. Crelogix will offer an installment credit program designed to allow independent retailers to offer an alternative financing option to their customers.
"We provide an alternative for the large purchases where the consumer finds comfort in a low monthly payment over a three- to five-year term. This helps the retailer increase its average sale and improve margins," he said.
Pattison believes Crelogix's installment credit approach will appeal to most consumers as it offers a number of benefits.
"Revolving credit cards have an approved limit and large purchases may utilize a large portion of the line, leaving little room for day-to-day purchases. They can also include penalty clauses or high rates if payment is not paid in full after the ‘no interest, no payment' period," he said.
"Installment loans may fit better for the larger purchase where the consumer has a fixed rate and an affordable monthly payment that may improve their cash flow," he added. "The other benefit that dealers like is the ability to increase the average sale and include optional insurance to help improve margins. Similar to revolving loans, an installment loan can be paid out any time without penalty."