Offering finance as a sole trader

[timbob]

I have a few thoughts rattling around my head at the moment with regards to setting up on my own as an independent driving instructor, and payment for lessons.

Usually instructors offer cheaper rates if you pay in bulk, but obviously some people are unable to do so. The thought has crossed my mind that offering offering bulk purchase of lessons, but spreading the cost over 9 months or so might be an attractive deal to folks in this day of everything seeming to cost £x per month.

I haven't got as far as working out numbers though - for example, if all my clients were paying a smaller amount per month, would I receive enough cash flow (that sort of thing), this is just floating around as an idea at the moment.

I do have a couple of questions though...!

1/ Is it legal to offer something like this privately - without involving a 3rd party finance company? Obviously it's quite possible to do something like this as a gentleman's agreement for family/friends who you would trust to continue paying a standing order after their lessons have finished and they have passed, but when dealing with the general public I would obviously like contracts and payment terms signed etc. Do you have to register as a lender, or other such prohibitive (I would imagine) necessities if you want to offer "finance" to clients?

2/ Secondly, if it is possible to set something like this up properly and officially, simply as a contract agreement between myself and a client, how do I go about drawing up a contract of payment? I would imagine terms and conditions need a professional eye casting over them to ensure everything is watertight if a client starts not paying.

Any input or feedback would be most welcome!