An arrangement with a financing company for Positive Sports Solutions customers means South African cyclists are still in a position to purchase their dream bike.
This came after the cycling brand distribution company announced an arrangement with financing company I-ME Solutions whereby their clients can qualify for loans up to 24 months on new purchases.
Positive Sports Solutions spokesman David Pieterse said there was a strong demand among their customers for an arrangement of this nature as not everybody could lay out all the money at once.
Freddie Fourie, co-owner of the Roodepoort-based financing company, said the demand for bicycle finance led to them widening the offer to individuals.
“We initially focused on doing the financing through businesses, but our book grew very well and we were getting more and more requests from individuals.”
With financing available over 12 or 24 months, he said there were a number of qualification criteria.
“We do have a credit model that we use to calculate risk and we cannot unfortunately help clients with any adverse information at any of the credit bureaus or those who are under debt review.”
Fourie added that due to the development of bicycle technology there was a viable market for their financial products in the country.
“The rate at which the sport is growing in all its different categories and the price tags of new bicycles means the model makes it possible to keep up with technology.”
There had been a positive response from the cycling public, said Fourie, with many clients financing more than one bicycle with them.
“We also have a very high upgrade ratio and that is a good indicator that the product works well for our clients.
“For example, around 86 per cent of our clients buy new bikes at the end of the term.
“We also have quite a few early upgrades, where clients trade or sell their old bikes and finance new ones before they reach the end of the term.
“In essence it means we have a high percentage of return business clients.”
Positive Sports Solutions have sole distributorship agreements in SA for several premium international brands. These include HEAD bikes from Europe, Gipiemme wheels from Italy, Westfalia racks from Germany and Controltech components from the United States.