Comercial finance ?

lootmaker | 10:24 Wed 30th Nov 2005 | Business & Finance

3 Answers

Ive set up a new business weve been trading for 3 months we have quite a high turnover, we are offering various training services..we charge upto �2,500 for a course. We need to find a company that will give them finance and spread the cost over 24 - 48 months. they give a deposit of 10% and the rest they can finance. what do we need to do and is it possible and what are the costs involved.

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Oneeyedvic

Are you offering your service to Limited companies or sole traders / partnerships or individual; people?

As you are selling 'training' it is not an asset, so both HP and Lease will be out. The only sensible way would be by loan.

For a finance company to do this sort of thing, they would want an APR in the region of 20%+ which will make you look expensive.

There is also the issue of cancellation periods if this is to non limited companies - it would be classed as a DCS agreement (Debtor - Creditor - Supplier).

Again, if not fealing exclusively with limited comapnies, the agreements would be regulated by the Consumer Credit Act, and you will also need a Consumer Credit Licence - these you get from the Offfice of Fair Trading - it costs around �250 and lasts for 5 years.

Post back if you have any queries.

lootmaker

Question Author

yes we are a limited Co, we only offer training to consumers, they often pay for training 8 weeks before they train and cancelations are very rare - we were hoping for 6 months no repayment option and spread over 48 months we want to make it as low repayment as possible even if apr is high. I think the other issue is we might have to take payment on the day we offer training

Oneeyedvic

It is not something that a lot of finance companies will want to do - you can try seaching for Paragon, Black Horse, V12finance

http://www.paragon-retail.co.uk/

http://www.v12finance.com/

I know nothing about hese companies other than the fact that they may do what you want. The fact that you are a new business may well go against you.

If you need any more info, you can also try www.allianceandgeneral.com

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