Stretching muscles, not wallets with interest free solutions

Founded in 2017, MuscleSquad’s mission is to encourage health and make fitness accessible to everyone. Through forging strong relationships with fitness equipment manufacturers, UK-based designs and robust supply chains, MuscleSquad was well-positioned to meet the sudden explosion in demand for home gym equipment when the COVID lockdowns hit – and have been growing ever since. 

 

As other suppliers found themselves struggling to source products – or took advantage of the rise in demand to jack up prices – MuscleSquad stuck to its company mission statement to put the customer first and make fitness accessible to all.

Benefits of DivideBuy’s approach:
  • Conversion rates of 65%
  • Approval rates of 87%
  • 545% increase in average order value
“MuscleSquad’s mission has always been to make quality fitness products more accessible. We’re proud to offer our customers finance options at checkout to help spread the cost. And with DivideBuy, that experience has been a positive one with high approval and conversion rates. DivideBuy’s vision aligns with our own, enabling us to give our customers the best outcomes possible.”
Chris Billingham
MuscleSquad Founder

The challenge:

As part of its commitment to accessible fitness, MuscleSquad decided to offer point of sale finance options to customers. One driver behind this decision was to give personal trainers – a key buyer demographic – the ability to spread the cost of setting up their own home gym over a period of 12 months. However, the company encountered some limitations with the provider they chose. 

 

Low credit limits

MuscleSquad’s higher-ticket items, including its popular squat racks, were in the £2000 range – but its finance provider only offered credit of up to £1000. 

 

Low approval rates

Not enough customers were being approved for the amounts of credit they wanted to borrow, which clashed with the company’s mission of accessible fitness and harmed their credit sales.

 

Low conversion rates

Limits on how much customers could borrow, as well as issues with approvals for higher-ticket items, meant that MuscleSquad was not converting as many buyers as it needed to. 

The Solution

DivideBuy offered MuscleSquad an interest free credit solution with a spending limit of £6000, solving its issue around finance for higher-ticket items. It also provided them with an Eligibility Checker tool, which let MuscleSquad’s buyers run a soft credit search to see if they would be approved for the amount they wanted to borrow. With a credit journey of just 5 steps taking less than two minutes from application to approval, MuscleSquad began to see a significant increase in credit sales.

 

Higher approval rates

DivideBuy’s ability to make its own lending decision, combined with its soft credit search tool, delivered approval rates of 87%. 

 

Higher average order values

MuscleSquad’s finance provider had been yielding average order values of just £170. DivideBuy was able to deliver average order values of £1097 – and increase of 545%

 

Higher conversion rates

DivideBuy’s seamless credit journey of less than two minutes, together with its upselling tools and soft search options, deliver average conversion rates of 65%.  

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Please note, a minimum turnover of £2.5M and minimum trading period of 24 months is required to offer DivideBuy finance solutions.

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