Credit provider announces record year

The company, part of the Japanese multi-national group, said it saw 53 per cent growth in its business and is on course to write more than 1bn of new business in the current year.

It is provides point of sale credit through brands such as Goldsmiths, Wickes, DFS, Centrica, Best Buy and Furniture Village.

Hitachi said retailers are turning to customer credit incentives such as interest-free credit to help boost sales during the downturn.

Gerald Grimes, divisional managing director, said: "Retail recovery will become a reality only when we deliver innovative point of sale finance solutions.

"As other consumer credit options have been restricted during the past 12 months, we have filled the gap and become number one consumer finance provider in the UK market.

"Our record growth demonstrates how we are using our 28 years of retail experience to provide strong point of sale credit offers.

"Shoppers get the opportunity to spread the cost, making big ticket purchases possible and much easier to manage."

Hitachi Capital Consumer Finance has links with more than 1,200 retailers across the UK. Three quarters of its agreements are interest free.

It pointed to figures from the Finance and Leasing Association which show that spending on loans, store cards and credit cards fell this year.

Hitachi Capital Consumer Finance was founded in 1982. Last month the company won a contract with British Gas to help drive sales by making it easier for customers to upgrade or replace their heating systems.