Flexible Financing for Retailers and Customers
Finance Technology AS delivers consumer finance solutions to mobile operators and electronics retailers. Finance Technology partners with banks, buyback guarantors and insurance partners to build flexible financing options where the consumer can return their device after a certain period and ‘SWAP’ for a new device and new financing contract.
How Does 'SWAP' Financing Work?
Flexible Period with device returned at end of contract.
SWAP is a product where the customer guarantees to return the phone, or other device, at the end or before the end of the contract. Because the device is returned, the financed amount is reduced by the residual value of the phone, leading to a lower customer price. Typically the customer agrees to a 12 month operator subscription with a 12 to 18 month device SWAP. Between Month 12 and 18, the customer can return the phone with no penalty and 'roll over' to a new SWAP contract.
What types of products are suitable for 'SWAP' financing?
SWAP contracts are appropriate for mobile phones, tablets, laptops and other items that have a high residual value after a financing period.
What customers benefit from 'SWAP' financing?
Customers, either individuals or businesses, who want the flexibility to frequently upgrade their devices. Customers typically pay a smaller monthly fee as the residual value of the device at the end of the contract is used to reduce the financed amount.
How do retailers benefit?
Retailers typically gain through more sales with increased margin on sales. Customer loyalty also improves as their customers must return at the end of the contract and the retailer can target the customer with new 'SWAP' options during the flexible return period.