Review of the non-prime, or high-interest, consumer credit market. It describes the market for consumer credit agreements with average fixed interest rates over 30% per year and profiles the main lenders involved in it. It includes:
- Review of each of the segments in the market
- Discussion of key segment issues including the impact of regulation, and sets out the publisher's estimates of historical and forecast growth for each.
- A set of 35 lender profiles of those active in the sector, covering financial performance, ownership, loan products offered, market positioning, corporate activity and history of the lender.
Covers the following segments and lenders operating within them:
- Guarantor finance (key providers include Amigo Loans (to close), Non-Standard Finance’s Trust Two and George Banco brands (both in run-off) and Guarantormyloan.co.uk
- High-cost short-term credit (following the exit of the majority of the largest firms, key providers include Gain Credit and PDL Finance)
- Home-collected credit (following Provident’s decision to leave the market, key providers include Morses Club and Non-Standard Finance (in run-off))
- Instalment credit (key providers include Non-Standard Finance’s Everyday Loans, Madison CF’s 118118 loans, Oakbrook Finance, Bamboo and Oplo)
- Motor finance (key providers include S&U PLC’s Advantage, Provident’s Moneybarn, First Response and Startline)
- Sub-prime credit card and other revolving loans (key providers include Capital One, NewDay and Provident’s Vanquis)
- Pawnbroking (key providers include H&T Group and Ramsdens Financial)
- Logbook loans (key providers include Car Cash Point)
- Rent-to-own (key providers include Mutual Clothing and Supply)
Who is the report intended for?
- Operators of non-prime businesses themselves
- Investors in these businesses
- Retailers
- Market regulators and policymakers
- Banks, analysts, consultants and other parties with interests in the sector
What are the sources and methodology?
- Interviews with senior-level contacts in the consumer credit industry
- In-depth analysis of the macroeconomic environment and relevant market drivers
- Financial analysis of the accounts of companies in the industry
- Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions
- Market forecasts have been constructed using simple assumptions which are clearly stated. Supporting evidence is provided for the publisher's assumptions but readers can flex them where required to model alternative scenarios.
Table of Contents
- Introduction
- Market background
- Market size and growth
- Outlook for the market
- About Apex Insight
- Company background
- Consulting services
- Commercial/operational due diligence
- Custom market analysis
- Primary research
- Growth strategy
- Related research
- Non-prime consumer credit market
- Definition
- Number of non-prime consumers
- Non-prime consumer credit market segments
- Market size by Revenue
- Market size by book size
- Market size by new lending
- Source: Apex Insight analysis Market growth
- Non-prime consumer credit segments
1. Guarantor Finance
- Definition
- Key players
- Sector size
- Sector trends
2. High Cost Short Term Credit (HCSTC)
- Definition
- Key players
- Sector size and trends
- Insight: Price cap makes traditional payday loans unprofitable
3. Home-collected Credit
- Definition
- Key players
- Sector size
- Sector trends
4. Instalment Credit
- Definition
- Key players
- Sector size
- Sector trends
5. Motor finance
- Definition
- Significant players
- Sector size and trends
- Sector trends
6. Credit cards and other revolving Loans
- Definition
- Key players
- Sector size
- Sector trends
7. Pawnbroking
- Definition
- Significant players
- Sector size
- Sector trends
8. Logbook loans
- Definition
- Significant players
- Sector size
- Sector trends
9. Rent-to-own
- Definition
- Significant players
- Sector size
- Sector trends
- Insight: Non-prime finance departs from the high street
- Alternatives
- Credit unions
- Community Development Finance Institutions
- Fintech solutions
- Government alternatives
- Unauthorised lenders
- Effect of the COVID-19 pandemic
- Drivers of Non-Prime Credit Usage
- Economic growth
- Unemployment and underemployment
- Wage growth and the impact of benefit policies
- Levels of self-employment and trade union membership
- Housing costs
- Access to mainstream finance
- Personal insolvency and bankruptcy
- Other poverty indicators: food bank usage and rough sleeping
- Motor industry and car finance trends
- Used car sales volume forecasts
- New car sales volume
- Our forecast scenario for used car sales volumes
- Motor finance penetration
- Regulatory impacts
- Other drivers of finance penetration
- Used car finance penetration levels
- Forecast used car finance values
- Non-Prime Credit Regulation
- FCA regulation
- Affordability and other regulation is key to the market
- Outlook for the market and our forecast scenario
- Guarantor finance
- High Cost Short Term Credit (HCSTC)
- Home-collected credit
- Instalment credit
- Motor finance
- Sub-prime credit card and other revolving loans
- Pawnbroking
- Logbook loans
- Rent-to-own
- Major lenders (loan books >£30m)
- Advantage Finance
- Ownership
- Corporate activity
- Products
- Recent information
- Amigo Loans
- Ownership
- Corporate activity
- Products
- Recent information
- Bamboo
- Ownership
- Corporate activity
- Products
- Billing Finance
- Ownership
- Corporate activity
List of Charts and Tables
- Non-prime net receivables by sector 2021 (£ million)
- Revenue by non-prime segment 2021 (£m)
- Net receivables by non-prime segment 2021 (£m)
- New lending by non-prime segment 2021 (£m)
- Non-prime receivables trend by sector 2018-2021
- Non-prime receivables growth (2018-2021 CAGR %)
- Guarantor Finance sector key data for year to December 2021 (estimates)
- HCSTC new lending value (£ billion)
- HCSTC Finance sector key data December 2021 (estimates)
- Summary of profitability of HCSTC loans
- Home collected credit sector key data December 2021 (estimates) £m
- Instalment credit sector key data December 2021 (estimates)
- Motor finance sector key data December 2021 (estimates)
- Credit cards and other revolving loans sector key data December 2021 (estimates)
- Pawnbroking key data December 2021 (estimates)
- Logbook loans key data December 2021 (estimates)
- Rent-to-own key data December 2021 (estimates)
- Number of high street stores offering non-prime consumer credit
- UK real GDP/% annual changes
- UK self-employed workers/‘000
- UK Trade union membership as % of those in employment
- Ratio of median house price to median gross annual residence-based earnings (England and Wales)
- Number of UK bank branches
- Number of credit cards in issue/m, end of year
- Food bank usage/ ‘000 parcels distributed by Trussell Trust
- Rough sleeping - England
- Historical and forecast car sales - volume/m
- Historical and forecast used car finance penetration by volume/%
- Historical and forecast used vehicle finance - volume ‘000
- Historical and forecast used vehicle finance value - £ billion
- Historical and forecast used car finance penetration by value/%
- Key FCA regulatory requirements relevant to Non-Prime Consumer Credit
- Historical and forecast new non-prime lending by segment: sub-prime credit cards vs other types/£m
- Historical and forecast new lending by segment excluding sub-prime credit cards/ £m
- Advantage Finance Limited Financials
- Advantage Finance Limited Receivables
- Amigo Loans Limited Summary Financials
- Amigo Management Services Ltd Receivables
- Bamboo Limited Summary Financials
- Bamboo Limited Loan Receivables
- Billing Finance Limited Summary Financials
- Billing Finance Loan Receivables
- Capital One (Europe) PLC Summary Financials
- Capital One (Europe) PLC Loan Receivables
- Evolution Money Group Summary Financials
- Evolution Money Group Loan Receivables
- First Response Finance Limited Summary Financials
- Gain Credit LLC Summary Financials
- Gain Credit LLC Loan Receivables
- Go Car Credit Limited Summary Financials
- Go Car Credit Limited Loan Receivables
- H&T Group Summary Financials
- H&T Group PLC Loan Receivables
- Indigo Michael Limited Summary Financials
- Indigo Michael Limited Loan Receivables
- Madison CF UK Limited Summary Financials
- Madison CF UK Limited Loan Receivables
- Morses Club plc Summary Financials
- Morses Club plc Loan Receivables
- Mutual Clothing and Supply Company Limited Loan Receivables £m
- NewDay Group Limited UK Summary Financials
- NewDay Group UK Limited Loan Receivables £m
- Non-Standard Finance plc Summary Financials
- Non-Standard Finance Loan Receivables
- UK Credit Ltd, Automoney Ltd, Mobile Money Limited Summary Financials
- UK Credit Ltd, Automoney Ltd, Mobile Money Limited Limited Loan Receivables
- Oakbrook Finance Limited Summary Financials
- Oakbrook Finance Loan Receivables
- Temple Finance Limited Loan Receivables £m
- Provident Financial Group PLC Summary Financials
- Provident Financial Group PLC Loan Receivables £m
- Specialist Motor Finance Limited Summary Financials
- Specialist Motor Finance Loan Receivables
- Oplo CF and Oplo PF Financials
- 1st Stop Receivables (excluding home loans)
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Advantage Finance Limited
- Amigo Loans Limited
- Amigo Management Services Ltd
- Automoney Ltd
- Bamboo Limited
- Billing Finance Limited
- Capital One (Europe) PLC
- Car Cash Point
- Evolution Money Group
- First Response Finance Limited
- Gain Credit LLC
- George Banco
- Go Car Credit Limited
- Guarantormyloan.co.uk
- H&T Group
- Indigo Michael Limited
- Madison CF UK Limited
- Mobile Money Limited
- Morses Club PLC
- Mutual Clothing and Supply Company Limited
- NewDay Group Limited UK
- Non-Standard Finance PLC
- Oakbrook Finance Limited
- Oplo
- PDL Finance
- Provident Financial Group PLC
- Ramsdens Financial
- S&U PLC
- Specialist Motor Finance Limited
- Startline
- Temple Finance Limited Loan
- UK Credit Ltd
