Offering Finance to my Customers
Discussion
I have been doing a lot of thinking recently about expanding my business. One local firm has had a great growth success recently in a slightly different category and it had my wondering how they were so successful, the main conclusion I came to was that the vast majority of their work was finance funded.
Last summer I started doing private jobs which seemed a nice side addition to my work load, I started doing fencing, driveways, drainage and general garden conversions. Most of the work was circa £2k but the odd job went up around £5k and one in particular was up circa £11k. I appreciate that these figures are not massive figures, however, I am convinced that offering finance (ideally 0%) would see a huge increase in the private work I do. For example I offered to do a driveway this coming summer, customer sucked through his teeth at the £3k quote as he didn't have that much spare cash knocking about, I'm sure he would take my hand off if I offered to do it for him for say £100/month.
So how do I put wheels in motion for this? Would any finance companies actually supply finance for this kind of service (garden/driveway works)? For the record I would want nothing to do with handling the finance, ideally I'm thinking that I just hand the finance forms from the finance company to the clients (kind of like the car leasing agents do).
Any advice and companies to speak to would be very much appreciated
Last summer I started doing private jobs which seemed a nice side addition to my work load, I started doing fencing, driveways, drainage and general garden conversions. Most of the work was circa £2k but the odd job went up around £5k and one in particular was up circa £11k. I appreciate that these figures are not massive figures, however, I am convinced that offering finance (ideally 0%) would see a huge increase in the private work I do. For example I offered to do a driveway this coming summer, customer sucked through his teeth at the £3k quote as he didn't have that much spare cash knocking about, I'm sure he would take my hand off if I offered to do it for him for say £100/month.
So how do I put wheels in motion for this? Would any finance companies actually supply finance for this kind of service (garden/driveway works)? For the record I would want nothing to do with handling the finance, ideally I'm thinking that I just hand the finance forms from the finance company to the clients (kind of like the car leasing agents do).
Any advice and companies to speak to would be very much appreciated
AFAIK if you are offering finance to consumers you need to be registered.
FCA guidelines: https://www.gov.uk/offering-credit-consumers-law
FCA guidelines: https://www.gov.uk/offering-credit-consumers-law
gov.uk said:
Any business offering credit or financing to customer must be authorised by FCA, not just credit specialist companies. This includes non-profit organisations.
Cutting a long story short, for a smallish business you cannot:
1. Offer Direct Debit to automate repayments
2. Offer finance
So, I:
1. Set up a world pay account with a recurring card payment system
2. Didn't charge for finance but marketed it as a 0% offer. Obviously you need sufficient working capital to fund this
1. Offer Direct Debit to automate repayments
2. Offer finance
So, I:
1. Set up a world pay account with a recurring card payment system
2. Didn't charge for finance but marketed it as a 0% offer. Obviously you need sufficient working capital to fund this
Thanks for the feedback guys.
Not sure I fancy the World Pay route, I should imagine most of my potential clients will choose a 3 year finance package and I am not sure I could carry out £5k worth of work (for example) and receive just £138.88 per month. I also have alarm bells ringing in regards to non-payers If I go down this road. I mean it's not as if reclaimed slabs, surfacing materials or fencing is of any real value even if I did go to the effort of removing "my goods"
I have read the FCA guidelines and I have no problem with applying for the licence. It just seems a bit pointless if there are no finance companies out there to supply me (or my clients I should say) with the capital.
Not sure I fancy the World Pay route, I should imagine most of my potential clients will choose a 3 year finance package and I am not sure I could carry out £5k worth of work (for example) and receive just £138.88 per month. I also have alarm bells ringing in regards to non-payers If I go down this road. I mean it's not as if reclaimed slabs, surfacing materials or fencing is of any real value even if I did go to the effort of removing "my goods"
I have read the FCA guidelines and I have no problem with applying for the licence. It just seems a bit pointless if there are no finance companies out there to supply me (or my clients I should say) with the capital.
Digga said:
Being pedantic, you can offer finance to businesses, but not to consumers or sole traders. Link in previous post is pretty clear to follow.
Hrm, never heard of it being a restriction on sole traders - pretty sure $work does credit accounts for sole traders without a credit license...Tuvra said:
Not sure I fancy the World Pay route, I should imagine most of my potential clients will choose a 3 year finance package and I am not sure I could carry out £5k worth of work (for example) and receive just £138.88 per month. I also have alarm bells ringing in regards to non-payers If I go down this road. I mean it's not as if reclaimed slabs, surfacing materials or fencing is of any real value even if I did go to the effort of removing "my goods"
Its easy to look at this from that viewpoint but all will be homeowners, you know where they live and have all their relevant details. The chances of them not paying are probably quite low but the gains in new customers could easily outweigh the odd bad payer. And you can still use a debt collection agency if required. Don't assume you need to give them long payment terms, you can give them whatever you want. I went for 10 payments and a 20% deposit. This is what I was sent by Carefree credit
Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
robdcfc said:
This is what I was sent by Carefree credit
Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
Im really interested in this too mate for our bathroom company, could you forward the contact email ?Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
Jamster123 said:
robdcfc said:
This is what I was sent by Carefree credit
Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
Im really interested in this too mate for our bathroom company, could you forward the contact email ?Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
robdcfc said:
Jamster123 said:
robdcfc said:
This is what I was sent by Carefree credit
Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
Im really interested in this too mate for our bathroom company, could you forward the contact email ?Thank you for your interest in our interest free payment options to offer your clients, hopefully the following will give you all the information you need to decide if this facility would benefit your business.
The interest free loan can be spread over 6, 10 or 12 months. A small subsidy is charged for each credit transaction – details attached, and this subsidy is deducted from the total amount financed with the net amount being paid into your account after the agreement has been signed. This charge is also classed as a business expense and can be treated in the same way as your credit card transaction fees by your accountant.
Applications are made online through an intuitive, easy to use web based portal. Approval is instant and the system is available 24 hours a day, 7 days a week, and 365 days a year - finance is available from £250 upwards.
The application process is paperless and takes no more than 5 minutes to complete which results in minimal disruption. Alternatively, if completing the application in your centre is not convenient then the client can complete it in the comfort of their own home via an email link which our system sends to them. Once the agreement has been signed, the funds arrive in your bank account within a matter of days.
Financial Conduct Authority (FCA) approval is required to allow you to offer finance options, the application fee for this is £100 and we can offer guidance with your application. For further information on the FCA please visit http://www.fca.org.uk/ there is also an annual fee of £145 charged by the FCA to maintain your FCA authorisation.
Carefree Credit charge a monthly fee of £10 payable by Direct Debit from registration. This fee covers on-going compliance support, on-line system access, office support and point of sale material as required.
If you are interested in signing up, the process is as follows:
1. Advise us of your interest, we will then send you registration forms to complete – office@carefreecredit.co.uk or 0845 313 0177.
2. When registration forms have been received we then send you the link for FCA authorisation – please liaise with our office if you require guidance on the application process.
3. Once FCA authorisation has been received (usually in under 8 weeks), we will send you contracts to sign be become an authorised supplier of finance through Shawbrook Bank.
4. Once contracts received, user names and passwords are issued and you are set up ready to go.
5. Full systems and processing training will be given upon set up, with branded point of sale material (leaflets and posters) available at this point.
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