What options are available when offering retail finance?

For retailers who have never offered retail finance, take a few minutes to find out what can be done for your business, what is needed to get facilities in place and what is the alternative if you cannot get direct facilities.

True retail finance involves the use of the debtor’s creditor supplier agreement and requires retailers to have a consumer credit license with category C coverage on it. This will allow you to act as a broker and process the Consumer Credit Agreement through various of your trading channels, namely the Web, Shop or Mail Order.

When looking for a retail financial business usually talks about free interest in interest (IFC) as used by many large furniture outlets. There are also buying products now (BNPL) which are mostly used in the lower margin sector such as consumer electronics stores. This product does not need to be confused with IFC even though there are significant differences between two plus offers it is also illegal for BNPL to be presented in line. Finally there are flower fortresses or classical credit, where customers pay the interest rate determined by the retailer.

There are other offers that can also be considered retail finance. Shop cards as offered by large department stores, for example and even several shared branded credit cards through many large national retailers and online retailers. True retail finance Although in my mind it is a credit agreement to enter specifically for purchasing goods and / or services from certain retailers.

To offer retail finance, retailers usually need to meet certain criteria that will be received by lenders as an introduction. Criteria will vary from one lenders to another but generally they are consistent in terms of all of them will consider the products you sell, your retail sales turnover and your time in business. Maybe your business doesn’t meet some or all criteria and therefore keep you without retail financial offers.

This is a problem faced by many businesses throughout the UK and considering a recent history in the market where two key players who previously withdraw from this sector and the others entered the government may not change much in the near future.

The option then must look at the independent broker to help your customers who need the finances that get the most help in the source of the loan that can then be used to buy from you. This is a process that is sometimes dressed as retail finance but the reality is that it is only an alternative to traditional retail finance for companies that cannot get a direct line to one of the 6 main lenders. It can also be treated as supplements to traditional retail finance where we can offer to help customers decrease by lenders but still need credit to buy.

If you can set a direct line in place with a lender then this is frankly the best process for you because you will be paid directly by the lender and have control over the tariffs offered. You will not be able to control the rate of lenders and in this sense having a reserve offer may be very useful for business.

But what if you can’t get a direct facility? It is possible to advertise third-party facilities and enable customers who may have been rejected for bank loans or credit cards.