Lender looks to Baltic as international reach grows

The Leeds-based group said the move is an important milestone as it marks the first new country entry since the company’s Strategy for Growth was introduced in July 2012.

It said that a favourable business environment, clear regulatory, tax and funding arrangements plus a positive economic outlook were contributory factors in deciding to invest in Lithuania.

It added that there is strong demand for shorter term, lower value loans from Lithuanian consumers who were not being served by other credit providers.

It said it can service this demand by providing a simple, default-free product delivered directly to customers’ homes.

IPF’s chief executive Gerard Ryan, said: “I’m delighted we have issued our first loan in Lithuania. We identified a clear gap in the consumer credit market and believe there is an opportunity to build a very successful business here.

“Our proposition is quite distinct. We offer a very transparent, flexible product that meets the needs of consumers and has no hidden charges or fees.

“We meet with and establish a relationship with every single customer that we lend to.”

IPF is using its existing infrastructure in Poland to accelerate the launch of the new operation and expects to have national coverage in Lithuania within 18 months of launch.

IPF will trade as Provident, replicating the use of the Provident brand name in its other international markets. It already operates the Provident brand in Poland, the Czech Republic, Slovakia, Hungary, Mexico and Romania.

The company’s first branch was opened this week in Vilnius by David Broadbent, IPF’s finance director.

Initially operating out of Vilnius, IPF will shortly expand its operations into Kaunas, Lithuania’s second-largest city, in the second half of 2013.

IPF provides unsecured, short-term credit to consumers who want smaller loans and can’t get access to banking finance.

Typically customers borrow between £50 and £1,000 and repay their loans over a 12-month period.

The company will publish its half year results on July 30.

Recent research showed that IPF’s customers believe that employment markets will improve in the next 12 months, making them more optimistic about their household finances.

The report, carried out by YouGov, looked at the financial wellbeing of IPF customers across Europe and Mexico.

It found that while half of IPF’s customers think their national economies will deteriorate over the next 12 months, 39 per cent expect their own household finances will improve.