Offering a credit facility (loan) to customers

R

roy2005

Guest
Hi all,

I'm considering offering finance to some of my potential customers who would otherwise not purchase my products. What I'm thinking of is offering them a personal loan from a financial institution to purchase my products (<€5k). I suppose similar to a car loan that I could arrange on-the-spot.

Has anyone experience in this area? What financial institutions could I approach to 'partner' with, ideally cutting out as many middle men as possible?!

Many thanks in advance,

R.
 
it really depends on the product and whether lender consider said product as suitable security for the loan...

I would'nt say too many lenders would be willing to do it on a personal loan basis to be honest.
 
HFC Bank do this for Dixons/PCWorld/Curries. They always need to run a check such as employment address and things like that but it gets done there and then.
 
call woodchester finance etc and see if they will allow you to sell their finance for your product. Does it have any general market value (like cars or sofas etc)? I'm sure there's more to it than that but it's a start.
 
If your customers can only purchase your products using credit then perhaps that's a sign that there is no ready market for them or that selling this stuff is a high risk venture?
 
ClubMan said:
If your customers can only purchase your products using credit then perhaps that's a sign that there is no ready market for them or that selling this stuff is a high risk venture?
Click to expand...
He said some of his potential customers. I would imagine its something as big as a home entertainment system which is quite common to have a personal loan system for.
 
Thanks for the replies, I'll try some of the names mentioned. Yes, I believe the odd sale or two may be missed and a convenient (competitive) credit facility could be a deciding factor.

Thanks again,

R.
 
Remember that selling credit is a major source of income for many companies that offer it. A car dealership can make more money selling you credit than they make selling you the car.
The credit company takes the risk.
 
Just leading on from Purple's reply. Out of interest, if I was to become the credit institution and offer the finance to my customers (taking the risk etc), what regulations would I need to be aware of? Would I need to register with IFSRA? Would this be a lot of work for a SME?
 
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