start up company wants to offer credit facility; is this regulated?

J

Jocmanu

Guest
Hi , hope you can help , i'm am researching an online busniess idea I have had and so far so good, it would appear to be a runner, there are very few competitors and I believe I can provide a service to match or better them right from the start.

The question I have is, for the products I will be offering I would like to offer a credit or layaway scheme so as to get as much trade as I can.

Products would range anywhere from €200 to €1000 in price.

I am curious if I can offer this facility or would I need to be regulated ie. am I trying to become a lending operaton ? or can I just offer this service ?

Sorry if its the stupidest question ever but I dont even know where to ask the question?
 
Re: credit facility

I don't know if this needs to be licenced. You could try contacting the Financial Regulator for more details.

I'm just wondering if you are confident that you can manage this credit facility? Have you expertise in assesing credit risks? How will you handle defaulters?
 
Do you have a business plan? A well thought out BP would allow you address this and other critical issues early on. I suggest you engage a professional accountant (or managment consultant) who specialises in company start ups.

Cash flow/credit management is the rock on which many a good start up founders.

aj
 
You can give credit for the purchase of goods. Most businesses do.

If you charged interest on the credit, then I think you would be classed as a moneylender and would need a moneylender's license.

Brendan
 
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