Versatile Credit and Acima Leasing Partner on Lease-to-Own Prequalification

Versatile Credit has partnered with Acima Leasing to offer merchants access to Acima’s lease-to-own (LTO) prequalification feature.

This partnership will help merchants optimize their financing and leasing programs, and provide a seamless leasing process for their customers, the companies said in a Thursday (Oct. 5) press release emailed to PYMNTS.

“We’re thrilled to be deploying our prequalification feature with Versatile Credit,” Mitch Fadel, CEO of Acima Leasing’s parent company, Upbound Group, said in the release. “With this feature, Acima has the ability to get in front of the customer and present our leasing option, allowing shoppers to make an educated, informed decision and find the best option that fits their budget and receive the products they need.”

The new collaboration brings together Acima Leasing’s virtual LTO solutions and Versatile Credit’s software that connects merchants, lenders and consumers to facilitate loans and leases at the point of sale, according to the press release.

Acima Leasing’s LTO solutions are available for a wide range of durable goods and allow eligible shoppers to lease products from Acima with a low initial rental payment and flexible payment, ownership or return options, the release said.

Versatile’s credit cascade technology helps eligible applicants reach “the fastest path to yes” by transitioning those who are declined or do not receive a prequalified offer of credit to secondary or tertiary offers, per the release. This allows merchants to extend additional offers to shoppers.

“With a full spectrum of financing and leasing options merchants can often see their overall approval rates increase [by approximately 29%] — along with an increase in approval amounts — helping connect shoppers with options to help them make purchases or enter leases,” Ed O’Donnell, CEO of Versatile Credit, said in the release.

Over 106 million households, around one-third of the U.S. population, have subprime and below credit scores, and a large portion of these have limited or no credit profiles whatsoever, PYMNTS reported Sept. 19.

Secondary and tertiary financing options can play a role in the path to purchase for these consumers. These options can also help merchants retain the business of these shoppers when included among their financing options and credit portfolios.