SALT LAKE CITY, Utah — Credit specialist Acima L.L.C. and e-commerce solution provider Merchant Partners L.L.C. are forming a partnership they claim will benefit automotive service customers in economically vulnerable markets and provide potential growth for tire and automotive service shops.
The partnership leverages the technology of Merchant Partners, which owns 1stMILE — an automotive payment management software — and the financing capabilities of Acima Credit to provide flexible financing to automotive shops, the companies said.
The 1stMILE software is in use at more than 8,000 automotive locations nationwide, Merchant Partners said.
The 1stMILE platform provides automotive locations with financial-integration tools that the companies said will maximize revenues and lower costs, without a markup for payment processing. The software also recommends alternative financing to subprime customers who fail to qualify for traditional credit.
Bob Church, senior vice president of sales and marketing with Merchant Partner, said the primary goal of 1stMile is "to get more cars on the lifts for our customers and grow their revenue. The Acima program is a key contributor to help us get this done."
Acima Credit specializes in financing options for around 40 percent of Americans with low credit scores or a lack of credit history. Acima gives consumers the option of spreading payments over time and establishing a credit history and/or offers financing options to those with little, no or even poor credit.
Acima Credit Founder and CEO Aaron Allred said the collaboration will help "consumers in economically vulnerable markets with the much-needed resources to fix their cars when economic conditions have left them in a tight spot."
The partnership will enable a no-credit-needed financing option for nearly two dozen automotive point-of-sale systems integrated with the 1stMILE platform.
Jason Burt, who manages three Burt Brothers Tire locations in the Salt Lake City metro area, said the partnership of the companies "gets us more work orders. It gets us higher ticket totals. It gets us all the things that pump our business."