SGPS
25th February 2011, 10:06
Im wondering if anybody can help point me in the right direction to see if this is the right option for the business..
The company shall offer short term (typically 3months) financing services to help aid a customer unable to access mainstream credit to pay for particular products and services. Each customer finance scenario could be slightly different from the next but the marketting strategy is to offer 3 months interest free, in theory the term of the finance contract should have reason to exceed that term (given the nature of business).
The principle of the business is relatively high risk, hence the reason of the customer not being able to access mainstream credit (all applicants will be in employment by the way). So i hope i can reduce these risks with some tactical options. One in which i hope is right is my belief to use a CPA.
If i was to use a CPA as the method of payment would i be correct in thinking...
1. A CPA payment is more difficult to cancel than Direct Debit, thus reducing the risk of none payment.
2. As the business will offer short term financing the costs against Direct Debit set up fees etc would be signifantly cheaper
I have spoken briefly to a firm called "Wpm Software" who i believe could beneift other sides of the business if i where to use them i.e cut admin costs, it would enable customers to complete their CPA payment details offsite which in most scenarios would be a great help for both the business and customer. They said they could adapt the software to suit the needs of the business and be altered accordingly to suit each individual term agreed with the customer.
This side of the business is being created to help aid the needs of a certain target market and not whole part of the business. If anybody could advise me if my direction is correct. Ive tried to explain the business as best as i can, however at the moment i am trying to protect my venture in these early stages. But if you need any more information please do ask :)
Thanks in advance :D
The company shall offer short term (typically 3months) financing services to help aid a customer unable to access mainstream credit to pay for particular products and services. Each customer finance scenario could be slightly different from the next but the marketting strategy is to offer 3 months interest free, in theory the term of the finance contract should have reason to exceed that term (given the nature of business).
The principle of the business is relatively high risk, hence the reason of the customer not being able to access mainstream credit (all applicants will be in employment by the way). So i hope i can reduce these risks with some tactical options. One in which i hope is right is my belief to use a CPA.
If i was to use a CPA as the method of payment would i be correct in thinking...
1. A CPA payment is more difficult to cancel than Direct Debit, thus reducing the risk of none payment.
2. As the business will offer short term financing the costs against Direct Debit set up fees etc would be signifantly cheaper
I have spoken briefly to a firm called "Wpm Software" who i believe could beneift other sides of the business if i where to use them i.e cut admin costs, it would enable customers to complete their CPA payment details offsite which in most scenarios would be a great help for both the business and customer. They said they could adapt the software to suit the needs of the business and be altered accordingly to suit each individual term agreed with the customer.
This side of the business is being created to help aid the needs of a certain target market and not whole part of the business. If anybody could advise me if my direction is correct. Ive tried to explain the business as best as i can, however at the moment i am trying to protect my venture in these early stages. But if you need any more information please do ask :)
Thanks in advance :D