Managing the risk of credit

The provision of credit has been an integral component of the Group’s offer to the customer since inception. In the growing direct marketing and online retail environment, credit is also a source of reassurance to customers as they have no financial commitments until they have received and inspected their purchase.

The Group has a database of over 2 million customers with purchase and credit history and has developed the expertise to mine this valuable data to inform credit decision-making processes.

Some of the principles informing our approach to managing the risks of credit are:

  • Credit is managed through a process of continued multiple-level risk filtering
  • The Group acquires new customers through HomeChoice and the customer base therefore has a female bias of 85%. Females, particularly those buying homewares products, have proven better credit risk than their male counterparts.
  • Strict credit and affordability criteria based on customer bureaux data are applied.
  • New customers are granted a low credit exposure relative to their affordability.
  • Our bespoke behaviour scorecards observe customer behaviour and allow us to select only customers with low risk for marketing campaigns across the business.
  • Demonstrated good customer payment performance leads to higher credit limits and eligibility for FinChoice loans.
  • All credit decisions use customer performance from across the group.
  • We monitor our customers’ exposure to other credit providers through regular credit bureau sampling.
  • Our behaviour scorecards detect any deterioration in a customer’s credit performance, and we act immediately.
  • We have a dedicated collections call centre which is supplemented with external legal agents.


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