S&Uwww.suplc.co.uk TICKER: SUS EXCHANGE: L
S & U is a specialist provider of credit, mostly to sub-prime borrowers. The larger part of its business is Home Credit, where its original business of selling goods on credit to consumers has long been eclipsed by unsecured sort-term cash loans with weekly repayments (usually over 14, 20 or 37 weeks) collected from the customers' home. More recently it has diversified into medium-term secured lending on motor vehicles under the name Advantage Finance. Most Loansathome4u customers would be normally be unable to obtain credit from a high street bank and a large majority of loans are to satisfied customers who have previously borrowed and repaid their loans. Vehicle loans are larger and for a much longer period so there are fewer repeat customers and underwriting has to be more stringent. Both divisions are profitable and cash-generating with bad debts being less of a burden that the costs of administering relatively small loans.