Is 50/50 offering credit?

[Craiglincs]

Is payment terms of 50% upfront 50% on delivery offering credit? Apparently if you offer credit to sole traders you need to be FCA registered.

 

[The Resolver]

I would say not. Credit ap[plies when payment is agreed to be paid later than when the item is delivered.

 

[Ozzy]

Is payment terms of 50% upfront 50% on delivery offering credit? Apparently if you offer credit to sole traders you need to be FCA registered.

There is a difference between offering 30 days business payment terms, as an example, and actually offering credit facilities that attract interest fees ... and the key term here is 'by way of business'

So no, you don't have to be FCA registered to offer your customers payment terms.

 

[Ian J]

Is payment terms of 50% upfront 50% on delivery offering credit?

No

 

[Craiglincs]

So I could offer some traders net 30 without being registered if I was a machoist?

 

[Ozzy]

if I was a machoist

Err, quite how you earn your income is up to you but no you don't need to be registered with the FCA to offer trade credit terms as a business.
You only need to register with the FCA if providing credit is your means of business (ie. your company profit is interest you charge on the credit facility)

 

[Craiglincs]

Err, quite how you earn your income is up to you but no you don't need to be registered with the FCA to offer trade credit terms as a business.
You only need to register with the FCA if providing credit is your means of business (ie. your company profit is interest you charge on the credit facility)

Ah right I get it.