Historically, bad credit and poor purchasing power have excluded many consumers from buying higher-priced household items. Classic lenders are reluctant to offer plans to those with poor or absent credit pasts, and it can be hard for low-income households to save enough money for upfront purchasing. Kafene, founded in 2019, integrates lease-to-own agreements at point-of-purchase; opening up furniture, appliance, and electronics businesses to underserved consumers.
Lease-to-own is no new concept, but bringing this type of agreement to furniture and similar markets is relatively novel by comparison. Kafene’s toolbox – driven by custom-built technology – underwrites, approves, and enables payment in less than five minutes. Its point-of-sale nature means it does not interrupt the shopping experience and, additionally, consumers can manage existing leases through the website which encourages a positive consumer-lender relationship.
Kafene has seen substantial investment which is set to increase headcount to meet demand from merchants and consumers. Although it is only one of many buy-now-pay-later startups, the market for these platforms is huge and there is certainly room within it for Kafene to continue to grow.
Freddie
Company Specialist at Welcome to the Jungle