I'd like to offer financing. How would I go about it?

Discussion in 'Accounts & Finance' started by Dynumo, Mar 28, 2014.

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  1. Dynumo

    Dynumo UKBF Regular Free Member

    119 14
    Hi,

    I'd like to be able to offer my web design clients financing, such as splitting payments over 12 months or buy now pay later.

    I would rather not do it in-house (sounds like tremendous paperwork), but most of the companies I've found on Google are only for retail companies.

    Does anyone know of a company that would allow me to offer financing for services in the UK?

    Thanks,

    Adam.

    P.S. I know there are probably other threads asking similar, but of the ones I found none had any answers...
     
    Posted: Mar 28, 2014 By: Dynumo Member since: Jan 18, 2009
    #1
  2. k100danny

    k100danny UKBF Regular Free Member

    449 48
    Do you mean you want a company to offer your customers finance? say for instance like high street chains do if you want to buy a new tv ect? or do you mean you want the customer to be a debtor to your company? the two are very different things.
     
    Posted: Mar 28, 2014 By: k100danny Member since: Oct 23, 2013
    #2
  3. Dynumo

    Dynumo UKBF Regular Free Member

    119 14
    The first one preferably.
     
    Posted: Mar 28, 2014 By: Dynumo Member since: Jan 18, 2009
    #3
  4. Bob

    Bob UKBF Big Shot Free Member

    3,668 929
    Would imagine that it may be quite difficult as a website is an intangible asset. What you're really asking for is for them to be given an unsecured loan
     
    Posted: Mar 28, 2014 By: Bob Member since: Jul 24, 2009
    #4
  5. businessfunding

    businessfunding Guest

    0 0
    In a nutshell, it won't work.

    The asset is non existent
    The applicants will be weak
    The credit process will stifle your relationship with the client
    You will potentially need a Consumer Credit Licence

    Why not look at offering merchant facilities
     
    Posted: Mar 28, 2014 By: businessfunding Member since: Jan 1, 1970
    #5
  6. james_firmsites

    james_firmsites UKBF Enthusiast Full Member - Verified Business

    596 152
    Why not just charge them monthly, I do it with all my clients and it works great. There is no up front costs so it helps businesses with cash flow and over time you build up a steady income of monthly payments rather than big lump sums. Its win-win for everyone.
     
    Posted: Mar 28, 2014 By: james_firmsites Member since: Dec 20, 2012
    #6
  7. Dynumo

    Dynumo UKBF Regular Free Member

    119 14
    I've actually considered that - already offering some monthly services like hosting and social media management - but up front it seems quite risky if I could be spending 40 - 80 hours setting up a bespoke wordpress site with custom functionality.

    How have you found it? I notice you also don't use contracts? Do you charge a set up fee?
     
    Posted: Mar 29, 2014 By: Dynumo Member since: Jan 18, 2009
    #7
  8. ryedale

    ryedale Contributor Full Member - Verified Business

    1,547 368
    We allow some companies to spread the cost of a design over a max of 4 months but only if the site is hosted with us so that we retain control and the option to turn it off if payments are missed.
     
    Posted: Mar 29, 2014 By: ryedale Member since: Dec 17, 2013
    #8
  9. james_firmsites

    james_firmsites UKBF Enthusiast Full Member - Verified Business

    596 152
    Ah well like VTS suggests all mine our hosted in house, which is as much about convenience for the client as it is our own security but does have that advantage.

    I don't charge a setup fee, I like to think that by having a good service and feature offering the product sells' itself. Sure you get the odd time waster or business that goes under sooner than you would like but on the whole it works.

    I don't use wordpress for numerous reasons, but the system I do use I have spent a lot of time doing rewrites for the way it is deployed and configured so that the first 10-15 hours of installing, setting up and installing 3rd party addons for various features is taken care of by a 30 second script. I am a great believer in time & motion studies and have gone from 40-80 hours for a bespoke site down to 15-40 hours by practice. This helps reduce the risk as well.
     
    Posted: Mar 30, 2014 By: james_firmsites Member since: Dec 20, 2012
    #9
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