goeasy Stock

goeasy Ltd. provides non-prime leasing and lending services in Canada.

Customers could transact with easyhome Ltd. (easyhome) and easyfinancial through an omnichannel model that includes online and mobile, as well as approximately 400 leasing and lending locations across Canada. The company has developed an understanding of the non-prime Canadian consumer.

Segments

The company operates through easyhome and easyfinancial segments.

easyfinancial

In 2006, easyfinancial, the company’s non-prime consumer lending division began operating with the focus of bridging the gap between traditional financial institutions and costly payday lenders.

The business model of easyfinancial is based on lending out capital in the form of unsecured and secured consumer loans to non-prime borrowers who are unable to access credit from traditional sources, such as major banks. The company originates loans up to $45,000 with rates between 19.9% - 46.9%, which are fixed payment and fully amortizing installment products. In addition, the company offers a starter loan product for those customers that does not qualify for traditional instalment loans called creditplus, a secured savings loan designed to help customers build a positive credit history. easyfinancial also offers various optional ancillary products, including a customer protection program that provides creditor insurance, a home and auto benefits product, which provides roadside assistance and a credit monitoring and optimization tool that helps customers understand the steps to take to rebuild their credit and improve their financial outcomes.

The company offers its products and services through an omnichannel business model, including a retail branch network, digital platform and indirect lending partnerships. It had 266 easyfinancial locations (including 14 kiosks within easyhome stores) in 10 Canadian provinces as of December 31, 2020. In addition to its retail branch network, customers could also transact online, which remains a source of new customer acquisition and accounts for approximately 50% of the company’s application volume. The company also originates loans through its point-of-sale channel that includes various retail and merchant partnerships. Through its partnership with PayBright developed in 2019, Canada’s major provider of point-of-sale financing, the company offers its non-prime installment loan product through the PayBright platform at the point-of-sale, a partnership that would continue with Affirm Inc.’s acquisition of PayBright in 2020.

easyhome

easyhome, is Canada’s major lease-to-own company and engages in offering customers brand name household furniture, appliances and electronics through lease agreements.

Through its 161 locations, which includes 35 franchise stores or through its eCommerce platform, Canadians turn to easyhome as an alternative to purchasing or financing their goods. easyhome offers a solution that helps consumers get access to the goods they need, with the flexibility to terminate their lease.

In 2017, easyhome began offering unsecured lending products in approximately 100 easyhome locations. As of December 31, 2020, there were 113 easyhome locations offering lending products. With lease payment, easyhome customers could build their credit and use the easyhome transaction as a stair step into other financial products and services that have financial offers.

Product Range

The company’s focus is to build a suite of non-prime consumer credit products, which includes unsecured and secured lending products at various risk adjusted interest rates, products for those focusing to build their credit, such as creditplus, and a suite of value-add ancillary services. Through its product range, the company focuses to provide its customers with a path to improving their credit and graduating back to prime borrowing. The company has an auto loan product in development targeted to launch in 2021. Future products could include credit cards, lines of credit and additional products for credit establishment, including cash secured credit and starter loans.

Channel Expansion

The company operates 3 channels, such as retail, online and indirect. It would continue to pursue new opportunities that include expanding its retail network, developing a personalized digital experience, and seeking new third-party lending and referral partnerships.

History

goeasy Ltd. was founded in 1990. The company was incorporated in 1990. It was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015.