Finance Help ?

[Gina354]

Hi,

I have set up a online business and was wondering if I could do something like little woods do.

You can buy things on finance so for example:
A pair of jeans: £15.00
Or pay just 0.75p for 20 weeks

I was wondering how I would go about doing this any ideas on who I should contact at all or any links I could look at?

Thanks for the help

 

[Matthew_28]

Wouldn't the rate per week be higher to yield a return for the benefit of having finance? or is this interest free? lol.

Regards

Matt

 

[Gina354]

Yes I was just doing it roughly lol

There would be interest on top of that sorry for being a bit vague

 

[kontracta_com]

Do get a second opinion on this as there will be those who know the procedures, and indeed the rules, better than I. However there is the potential that you would be entering into territory where you would need a consumer credit licence.

The OFT will be a good source of information on this in the meantime:
http://www.oft.gov.uk/OFTwork/credit-licensing/credit-licence/requiring

and this guide is also from their site:
http://www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/oft147.pdf

 

[Naughty Vend]

There used to be a company whom did that, it was a rare service and as far as I know "not available" today...

Problems were the minimum initial spend, ongoing integration to your store front, declinations of customers whom then took the huff and thus are lost to you. You would also need a consumer credit licence if selling to non-business clients.

It's a good idea but not an easy one to impliment.

 

In addition to interest, you would need to give serious consideration to costs of administration and recovery.

Littlewoods are a highly efficient collection machine - but still get bad debt write-offs.

If you are still serious., look first at the Consumer Credit Act amd how it affects you.

Above all - never underestimate the impact of non-payment!

 

[Gina354]

I don't think I will be doing it now actually not untill we can afford it at least any way

Many thanks

Gina