Hey,
I'm COO of a lower end medium sized company who has experience good steady growth over the past 4 years and I want to start offering finance for our products and have a couple of questions regarding that.
I looked into this a while ago but couldn't find a company who would finance my customers because we don't sell a tangible product, its very much like selling information that is only worth anything to that particular customer so it has little value to anyone else.
Right now, I'm happy to absorb any risk myself and arrange the collections etc and I already have a credit license from the last time I was looking into this myself.
So my questions are:
Am I OK just pushing on with this or is there more paperwork for me to be looking into.
Does anyone have any advise on doing this in-house? I'm basically going to take a large deposit to minimise the impact of any bad debt and am just going to use Equifax to assess the risk. My APR will be rather high while I test the waters. I'll have proceedures in place for bad debt but wont hold out too much hope in that situation.
Do you have any speculation on its affects on sales? I've heard it generally ranges between 10 - 20% but to be fair, I've only heard this from people selling finance
Finally, one last shot at finding anyone who offers finance out there? We've been limited about 5 years, turnover aprox 3.6mill for this year, obviously accounts will show this. As I say, the product is not tangible which I know is a large barrier but are there other factors which can be considered?
I would rather speak privately over specifics if that's OK so PM if you think we could work together in that capacity.
Any help gratefully appreciated.
Thanks
