Finance

[HOMESAFE]

From my thread yesterday I have decided to look into offering plumbing and gas care as well as electrical care for domestic householders,I know I can beat British gas prices for homecare but now I have another idea I wouldnt mind adding
There are going to be custumers who require central heating updates,new boilers or rewires during their time as a Homesafe customer,
How could I offer them Upgrades on a pay monthly basis such as a rewire for £25.00 a month for x amount of time without me being £3000 out of pocket until they i have paid for the work.Who or which companys will set up an account with me and do they pay me the existing finance straight away,if that makes sense?:|

[CKG]

I looked into doing this.

First of all you need a consumer credit licence. Easy to get, a few form and £90 I think.

Your next task is to find a credit provier.

If you find one they will offer you lots of different deals to advertise. High APR, low APR and interest free credit.

Some deals you can make money on top for selling the credit and some you have to pay a small % of the value of the sale for - 0% APR over 3 years for example will cost you a small % of the sale.

You have to have a good set of accounts behind you - most want to see 5 years trading and some will have a minimum turn over requirement and you will more than likely have to pay an application fee.


Hitatchi Capital were quite easy to deal with I seem to remember and British Gas use GE Capital to provide their credit.

[Gillie]

I looked into doing this.

First of all you need a consumer credit licence. Easy to get, a few form and £90 I think.

Your next task is to find a credit provier.

If you find one they will offer you lots of different deals to advertise. High APR, low APR and interest free credit.

Some deals you can make money on top for selling the credit and some you have to pay a small % of the value of the sale for - 0% APR over 3 years for example will cost you a small % of the sale.

You have to have a good set of accounts behind you - most want to see 5 years trading and some will have a minimum turn over requirement and you will more than likely have to pay an application fee.


Hitatchi Capital were quite easy to deal with I seem to remember and British Gas use GE Capital to provide their credit.

How much??

How many years ago was it you looked into this??

Read this (http://www.oft.gov.uk/advice_and_resources/resource_base/credit-licence/fees#named1) to get more accurate ideas of fees!

[CKG]

Ouch!

It was a couple of years ago...I don't remember it being that expensive...!

[AOB]

Hi HomeSafe, I admire the ambition, but I worry that your prospective customers won't perceive a master of all trades but a master of none? Apologies, but I am not close to your business model - nor how many people you will have in your team - so I may have got this wrong.

I would be careful about cash flow and the cost of credit in your model. If you are modelling yourself on Homeserve (who I think is the big player in your field?) I beleive that they are insurance based rather than credit based.

[paultnl]

I understand what AOB is saying but I think if you present yourself correctly as a team, Certified Electrician, CORGI fitter etc. you can give the right image.

If you were in Cambridgeshire I would could be a customer, do you have expansion plans, franchising maybe?