offering intrest free credit to customers

[stacks]

I run a home interiors site and we have some fairly expensive stuff on it especially when people want to buy a full bedroom collection which can come to a few thousand pounds.

I've recently had a few enquiries asking if we do intrest free credit which we dont but it's got me thinking!

Now I've checked on a lot of other site which are bigger than ours (which is where we will hopefully be heading) and they all offer intrest free credit options.

So, does anyone on here have any experience with doing this? Is it likely to increase sales by much? Would it cost me anything to offer this or do I infact make money for each person that signed up for it? Who would be the best credit company to go through?

Anything to be aware of, pit-falls etc, please feel free to point them out.

Cheers!

[peterstagg]

Hi

I was thinking of this for one of my sites too. I think from memory you should talk to your business banking manager (You should have one). They will help you with the information and depending on the bank lead you to their associated lending arm.

If you choose to use a third party financier (E.g GE Money or Black Horse etc) you will need to contact them and go through their T&C's to see if it suits you. There will be charges but how that is factored in I can not remember.

hope that helps.
peter

[Astaroth]

Costings vary, much of the cost is covered by the fact that they charge exceptionally high rates for those that dont pay in full within the time limit and frequently back date it to the inception of the credit (ie 0% if paid in 9 months or 39.9% APR if not)

I would also suggest seeing who your competitors are using like Black Horse and speaking to them on the options

[openmind]

Also have a look at www.able2buy.co.uk but you will need a consumer credit license.