How to legally protect myself?

[Anazoth]

My business is in it's very early stages. In fact, it's only an idea at the moment.

I will be wanting to set up a payment scheme for various household essentials and electronocs such as furniture, kitchen appliances, television etc. I want to plan everything out so that there are no faults.

My business will help those who aren't well off and let them be able to afford these items with no credit checks. My only problem is the payment side of things. How can I legalise it so that they can't just take an item and decide not to pay for it somewhere down the line?

 

[MBE1]

Best of luck, but IMO a flawed system, without any form of credit check you will attract the wrong type of client very quickly, even doing credit checks similar companies can experience 30-40% losses on the high risk type client, so I hope you have very deep pockets.

I would also consider whether such lending is even ethical, since little attention is paid to whether the client can afford such credit, I doubt courts would enforce anything other than the barest repayment terms if required.

How do you stop people from not paying? Simple answer is you cannot.

 

[Anazoth]

Thanks for your feedback. I was afraid that this would be the case which is the reason I'm asking. I was looking to do this to help my local community but on the other hand I felt that I might as well just throw my money into a fire.

Luckily, I've another idea in mind which would be risk free lol.

I appreciate the help.

Danny

 

[ethical PR]

If you want to help those with low incomes in your community why not set up a community furniture recycling scheme or support a local one. Much better for people to pay a small amount for home essentials than rack up large interest payments they can't afford to repay.