How Does goeasy Company Work?

goeasy provides a crucial 'yes' to customers who are frequently denied credit by mainstream banks. This accessibility is a cornerstone of its value proposition, offering financial solutions and essential household goods to a segment of the population that might otherwise struggle to access them.

• Offers loans up to $150,000 through easyfinancial.
• Provides lease-to-own options with no down payment or credit check via easyhome.
• Leverages advanced analytics for risk assessment in the non-prime market.
• Facilitates merchant financing through the LendCare division.
• Supports customer credit score improvement, with 1 in 3 graduating to prime rates within a year.

goeasy employs several strategies to monetize its services, focusing on customer flexibility and risk management. These strategies are central to the goeasy business model.

• Flexible Payment Plans: Offers weekly, bi-weekly, or monthly payment options for lease-to-own merchandise.
• Loan Terms: Provides fixed interest rates and repayment terms ranging from 9 to 120 months, tailored to loan size and borrower profile.
• Tiered Pricing: Implements risk-based pricing for loan products, adjusting rates based on credit assessment.
• Secured Lending Focus: Increasing the proportion of secured loans in the portfolio to mitigate credit risk, with secured loans making up 46% in Q1 2025.
• Early Purchase Option: Allows lease-to-own customers to pay off their remaining lease balance early, often with a discount on the total cost.
• Loan Origination Growth: Achieved record loan originations of $3.17 billion in 2024, a 17% increase from 2023, indicating successful expansion of its lending services.

goeasy's competitive edge is built on a robust omnichannel presence, strong brand recognition, and proprietary risk management tools. The company's commitment to customer financial improvement further differentiates its Growth Strategy of goeasy.

• An extensive network of over 400 physical locations combined with strong online platforms ensures broad customer accessibility across Canada.
• Proprietary customer scoring models, leveraging machine learning, enable effective risk management within the non-prime lending sector.
• A diversified product suite, including installment loans and lease-to-own options, provides comprehensive financial solutions for its target market.
• The company actively supports customers in improving their credit scores, facilitating a transition to prime lending rates.

goeasy is strategically positioned for future growth, aiming to expand its consumer loan portfolio to $4.9 billion by 2025. The company projects total revenue between $1.6 billion and $1.8 billion for 2025, with an increase to $1.75 billion to $1.95 billion anticipated for 2026.

• Focus on expense optimization and improving customer creditworthiness to lower net charge-off rates, targeting 7.5%-9.5% by 2025.
• Enhancing profit margins to exceed 38% by 2025.
• Diversifying product offerings and expanding distribution channels.
• Growing its geographic footprint across Canada.
• Maintaining a strong capital position, with total assets reaching $5.33 billion as of March 31, 2025, and securing $565 million in new capital to support growth.

These initiatives underscore the company's commitment to sustained revenue generation and market expansion, even amidst potential challenges. Understanding this landscape is crucial when considering the Competitors Landscape of goeasy.