Acima

Acima provides a lease-to-own (LTO) solution for customers who may not qualify for traditional financing, positioning itself as an alternative to credit. The company was co-founded in 2013 by Aaron Allred and Shaun Stevenett, initially named Simple Finance. Allred, a seasoned entrepreneur with previous ventures in pest control, drew upon his personal experiences and identified a market need for alternative financing options. The name "Acima," meaning "above" in Portuguese, was chosen to reflect the company's mission of helping people rise above their financial situations.

The company's business model centers on purchasing products from partner retailers and then leasing them to consumers. This allows retailers to make sales they might otherwise lose and gives consumers immediate access to goods. Acima generates revenue by marking up the invoice price of the goods and collecting lease payments over a set term, which typically makes the total cost higher than the original retail price. The company operates in a substantial market, targeting an estimated 60 million unbanked and underbanked consumers in the United States. Its primary product categories include furniture, appliances, electronics, and tires.

Acima offers a digital application process through its mobile app, website, and in-store at thousands of retail partner locations nationwide. Approval for a lease, typically for amounts between $300 and $5,000, is primarily based on income and checking account history rather than a credit score, though the company does obtain information from consumer reporting agencies. Customers make an initial payment and then have flexible renewal payment schedules. The platform includes early purchase options designed to lower the total cost for the consumer if exercised within specific timeframes. This technology-driven approach provides a streamlined point-of-sale financing option for both online and brick-and-mortar stores.

Acima experienced rapid growth, appearing on the Inc. 5000 and Deloitte Technology Fast 500 lists for its significant revenue increases. This trajectory culminated in a major milestone on December 20, 2020, when Rent-A-Center (now Upbound Group) announced its definitive agreement to acquire Acima Holdings for approximately $1.65 billion in cash and stock. The acquisition was part of Rent-A-Center's strategy to build a leading virtual LTO platform and expand its omnichannel presence. Following the acquisition, Acima continued to operate from its Utah headquarters and its management team was integrated into the new parent company structure. Keywords: lease-to-own, LTO, point-of-sale financing, no credit needed, fintech, consumer leasing, retail financing solutions, Acima Leasing, Aaron Allred, Upbound Group, buy now pay later alternative, furniture financing, appliance leasing, electronics payment plans, tire financing, virtual lease-to-own, consumer durables, omnichannel retail, credit-constrained consumers, alternative financing, retail partnerships, point-of-sale lending