Credit move by Park

PARK Foods, the Merseyside-based supplier of food hampers on credit, is moving into the credit business proper, offering small loans through its network of door-to-door collectors.

The service is aimed at social classes C2, D and E and will build on Park Foods' existing customer base of up to 1 million purchasers of food hampers.

Initially customers will be offered credit in the form of vouchers which are exchangeable for goods at local stores, including Iceland, Argos and British Home Stores, and paid for over 26 weeks. But after completing one successful credit cycle, customers will be offered small loans of up to pounds 100, which might typically be repaid at pounds 5 a week.

The new business will be run by Derek Wheeler, 49, who has 25 years experience of the consumer credit business, mainly with Provident Financial, the leading UK provider of door-to-door credit.