Home furnishings group introduces RTO option
As a way to reach "credit challenged" customers in an uncertain economy, The National Home Furnishings Association is introducing a new financing program that would allow members to test the rent-to-own waters, according to a report in Furniture Today.
The Lease/Purchase Alternative Finance Program is offered by 4Sales Finance, provider of a hybrid rent-to-own option for consumers declined by a store’s primary credit sources, NHFA said.
The RTO-like agreements are set up on 12-month terms, but customers can pay off the balance any time during the contract period.
In order to qualify customers must be employed for at least six months and have gross monthly income of at least $1,000.
Short-term rental or lease contracts like those offered by some RTO operators, are not currently available, according to the report.
The move is further indication of the valuable role the rent-to-own option plays in the economy, especially during times of tightened consumer lending. See related story.