small sum lenders....

[identity_crisis]

im looking into setting up my own business but my main stumbling block seems to be finding a lender willing to lend a small some of money (around the £150) on a short term repayment basis to make my product more apealing and available to customer profile i am looking at targeting.

what are the implications of going through this finance route. will i be classed a broker and need to be regulated?

any help/advice very much apreciated

kind regards

alex

[Ordinary Bloke]

identity_crisis said:

im looking into setting up my own business but my main stumbling block seems to be finding a lender willing to lend a small some of money (around the £150) on a short term repayment basis to make my product more apealing and available to customer profile i am looking at targeting.

what are the implications of going through this finance route. will i be classed a broker and need to be regulated?

any help/advice very much apreciated

kind regards

alex

Ask Mummy & Daddy for extra pocket money...

[smartie]

Ordinary Bloke said:

identity_crisis said:

im looking into setting up my own business but my main stumbling block seems to be finding a lender willing to lend a small some of money (around the £150) on a short term repayment basis to make my product more apealing and available to customer profile i am looking at targeting.

what are the implications of going through this finance route. will i be classed a broker and need to be regulated?

any help/advice very much apreciated

kind regards

alex

I think he means he wants to offer low amounts of credit to his customers!!

I think you need to to have a coonsumer credit licence and register with the ICO etc. Surely any finance co would advise the requirements if they offered you a facility?

Ask Mummy & Daddy for extra pocket money...

[flyingjase]

A bit harsh on the response!

I think the OP is asking how he can offer finance to his customers to make it easier to sell his product (not borrow £150 himself!)

I believe that you will need a consumer credit licence to offer finance. Have a chat with companies that currently offer this (years ago I had an interest free deal with Forward Trust I think so they maybe able to help if they still exist)

[neilski]

www.wonga.com

[rightrepair]

Try Welcome finance or Provident they might even give you a kick back which wouldn't be much on amount your talking but anything better than nothing i know they do if you pass them enough people good luck.

[identity_crisis]

thanks for the replys guys (apart from the borrowing from mummy/daddy comment) helped me alot

[playerone]

MEM Finance (payday lender) have an agreement with an auction site to offer short term loans to bidders. Is this the kind of thing your looking for?

Most lenders will pay about £10 per accepted customer under an affiliate program.

[BigAlinEmbra]

Can't help with providers of finance, but I'd be pretty wary of lending to people who can't shell out £150 straight off in the current climate! Make sure you get covered with payment protection or you're asking for trouble!

[playerone]

BigAlinEmbra said:

Can't help with providers of finance, but I'd be pretty wary of lending to people who can't shell out £150 straight off in the current climate! Make sure you get covered with payment protection or you're asking for trouble!

Really? Ive got a pretty good business lending sums like that. Its all about sensible lending and relationship management. You might be surprised who uses them....

You can insure against customers dying but the cost of insuring against customers defaulting is prohibitive.

[BigAlinEmbra]

playerone said:

BigAlinEmbra said:

Can't help with providers of finance, but I'd be pretty wary of lending to people who can't shell out £150 straight off in the current climate! Make sure you get covered with payment protection or you're asking for trouble!

Really? Ive got a pretty good business lending sums like that. Its all about sensible lending and relationship management. You might be surprised who uses them....

You can insure against customers dying but the cost of insuring against customers defaulting is prohibitive.

Good for you. Is that your core business though? Bit of a difference between someone who spends all their time assessing loans and ensuring payment versus someone that actually provides something else and the loan is on the side, no?

Presumably business is on the up just now whilst most lenders are struggling?

Do you honestly believe that now is the best time to be providing credit to people?

[playerone]

BigAlinEmbra said:

Good for you. Is that your core business though? Bit of a difference between someone who spends all their time assessing loans and ensuring payment versus someone that actually provides something else and the loan is on the side, no?

Presumably business is on the up just now whilst most lenders are struggling?

Do you honestly believe that now is the best time to be providing credit to people?

The customer profile has changed dramatically in the past 6 months. People who would get offered credit cards and loans regularly by banks have turned to this type of lending. They use it in a "payday" style where they borrow money in for 2-3 weeks and then you dont hear from them for a couple of months.

Some customers it feels like you have to save them from themselves. They will ask for more and more money promising they can pay it back when the reality is different. Defaulting doesnt do them or me any good.

Your right though. If it wasnt your core business you would get done over pretty quickly as you need your eyes on the ball all the time.

[identity_crisis]

im not looking at lending the money myself but using a loan company to give customers the option to pay on an installment basis to help appeal to a wider customer base.

i wouldnt be risking my money and would get paid out by the finance company upfront so no risk.

quite a few options to look at and people to contact.

thanks for the replys guys.