This content was published prior to the combination of Dentons Sirote. Learn more about Dentons Sirote. 

The conventional wisdom about doing business during the Pandemic has been that we are lucky if we don’t have to close our doors.  Those consumer finance companies that have been set up to make loans electronically appear to be faring better than those who were not.  See our earlier blog on this subject here.  With the loosening of stay-at-home orders, it seems that more customers are now willing to venture out.

Collections have not suffered as much as originations.  The stimulus programs and unemployment benefits have kept many consumers afloat and able to make their loan payments.  But originations have been quite another story.  

So, it is refreshing to hear some goods news on the origination front.

While almost 1/3 of Americans report that they have delayed financial purchases,  2/3 of Americans report that their finances are either better off or the same as before the Pandemic.  Further, Baby Boomers (ages 56-74) and Gen X’ers (ages 44-55)) have been almost twice as likely as Millennials (ages 24 to 39) and Gen Z’ers (age 18-23) not to delay purchases.  

These statistics taken together should be cause for optimism.  

That is, if there is pent up demand for purchasing consumer goods while at the same time there is a feeling that consumers are either financially better off or the same as before the Pandemic, there should be a good opportunity for making sales and advancing credit.  The older generation’s purchasing habits did not seem to be as seriously stressed as the younger generation’s.  And, if the younger generation’s purchases have been delayed, the time may be ripe for that to change.

Practice Pointer:  This may be the right time to invest more money in marketing and advertising.