Customer finance for small business

About to embark, over the next month, on a local advertising campaign for
economical, but attractive system builds, will be targeting primarily local
residential/family/first time consumers.

Now I know one of the major factors that have an impact on the consumers
decision, which to some is a lot of money, are the credit terms.

The 'buy now' and 'pay later', or the 0% finance for six months etc, take
the sting out of the tail.

Now then, do any of the finance houses deal with small business, by small I
mean between 5 and 20 systems per month.

How does it work? Does the seller get a percentage of the finance if the
customer chooses to not pay off the total amount? And, does the seller have
to pay fees to the finance company???

any help greatly appreciated.........

Gaz

Gaz,

able2buy will deal with small companies and they don't worry about how many
deals you put through. Any credit agreements usually bring a small
percentage commission back to you but the six month deferred payment jobbies
usually cost you a couple of percent. They provide software for you to
process applications and get acceptance/rejection online. Downside is, to
lend anyones money, you need a consumer credit licence, which takes about
6-8 weeks to process, so get started now !!

Just to cover myself, that wasn't a recommendation for able2buy. I did use
them myself and I found that they were fine to deal with but had a fairly
high percentage of refusals which ****es your customers off !! They all say
'i've never been refused credit in my life' etc etc

Good luck with your venture anyway. I'm currently considering getting out of
IT after 10 years as the margins just get slimmer and slimmer !!

Cheers,

Ally.



--
Ally Maxwell
Well-Tech Computer Centre
www.wcc-ltd.co.uk
---------------------------------------------------------------
Cases, CD Drives, Hard Drives, Memory, Modems, Motherboards,
Multimedia, Networking, Printers, Processors, Scanners, Video Cards.

Buy Securely, Online. www.wcc-ltd.co.uk
"Gaz" wrote in message
...
About to embark, over the next month, on a local advertising campaign for
economical, but attractive system builds, will be targeting primarily
local
residential/family/first time consumers.

Now I know one of the major factors that have an impact on the consumers
decision, which to some is a lot of money, are the credit terms.

The 'buy now' and 'pay later', or the 0% finance for six months etc, take
the sting out of the tail.

Now then, do any of the finance houses deal with small business, by small
I
mean between 5 and 20 systems per month.

How does it work? Does the seller get a percentage of the finance if the
customer chooses to not pay off the total amount? And, does the seller
have
to pay fees to the finance company???

any help greatly appreciated.........

Gaz

Gaz wrote:
About to embark, over the next month, on a local advertising campaign
for economical, but attractive system builds, will be targeting
primarily local residential/family/first time consumers.

Now I know one of the major factors that have an impact on the
consumers decision, which to some is a lot of money, are the credit
terms.

The 'buy now' and 'pay later', or the 0% finance for six months etc,
take the sting out of the tail.

you are aiming at the wrong end of the market.

try selling hardware to people with money for best returns







Albert

"albert fish" wrote in message
...
Gaz wrote:
About to embark, over the next month, on a local advertising campaign
for economical, but attractive system builds, will be targeting
primarily local residential/family/first time consumers.

Now I know one of the major factors that have an impact on the
consumers decision, which to some is a lot of money, are the credit
terms.

The 'buy now' and 'pay later', or the 0% finance for six months etc,
take the sting out of the tail.

you are aiming at the wrong end of the market.

try selling hardware to people with money for best returns


That will be part of the stratagy, but you would be surprised about the
profile of people who spend money on consumer goods. It's the Council
estates that have the latest W/Screen TVs, the first to have Satellite TV,
the council estate kids, the first to have the latest fashionable
clothes....

Gaz




Albert

"Gaz" wrote in message
...

"Osprey" wrote in message
...

"Gaz" wrote in message
...
About to embark, over the next month, on a local advertising campaign
for
economical, but attractive system builds, will be targeting primarily
local
residential/family/first time consumers.

Don't bother you've no chance of making a living IMHO.

I bet thats what BA said to Richard Branson..........

I have been trading for aprox a month as PC Repair business, this is part
of
my plan to increase the knowledge of the company existance.
Responses have been mixed, but in every week I have traded, I have earnt
more then my previous job. No one locally, yet, is marketing themselves,
the
margins on complete system sales, when taking into account support, are
not
to bad, due to presently low overheads. My only real competition are
Time/Tiny and PCWorld. And, if I picked up 1/2% of their custom, they
wouldnt notice, and I would be kept busy full time.

Now I know one of the major factors that have an impact on the
consumers
Now then, do any of the finance houses deal with small business, by
small
I
mean between 5 and 20 systems per month.

Won't need this small business IMHO.

In a market place, where a demand exists, you will almost always find a
supply.


Not a hope in hell of getting "Commission from a finance house."

I know that the offering of 0% free interest attracts me to purchase
items,
I know it would attract others................



I assume you don't have the capital resources to do it yourself?

I came across a local guy who was prepared to rent out machines with an
option to purchase and/or upgrade. Iwas going to use the rent option, but
when I calculated the "interest" rate, I decided an outright purchase was
cheaper - but a lot of others did.
--
Doug Ramage

On Mon, 21 Jul 2003 08:51:28 +0100, "Gaz" wrote:


"albert fish" wrote in message
...
Gaz wrote:
About to embark, over the next month, on a local advertising campaign
for economical, but attractive system builds, will be targeting
primarily local residential/family/first time consumers.

Now I know one of the major factors that have an impact on the
consumers decision, which to some is a lot of money, are the credit
terms.

The 'buy now' and 'pay later', or the 0% finance for six months etc,
take the sting out of the tail.

you are aiming at the wrong end of the market.

try selling hardware to people with money for best returns


That will be part of the stratagy, but you would be surprised about the
profile of people who spend money on consumer goods. It's the Council
estates that have the latest W/Screen TVs, the first to have Satellite TV,
the council estate kids, the first to have the latest fashionable
clothes....

Pretty much true. Dixons do a roaring trade of people going for
intrest free credit. The only problem is that that sort of person
would probably go to Dixons over you, and could be a nightmare to deal
with if little Jonny formatted the HD wiping out all there game saves
and then start giving you abuse becuase you want to charge them to
sort out their fskup.
--
This post does not reflect the opinions of all saggy cloth
cats be they a bit loose at the seams or not
GSX600F - Matilda the (now) two eared teapot, complete with
white gaffer tape, though no rectal chainsaw

On Mon, 21 Jul 2003 09:48:46 +0100, "Aosmosis" No SPAM Please wrote:

lol thats strange, as far as healthcare goes these people are in the lowest
socio-ecconomic class. The rate of caries amongst these people is supposed
to be really high.

Yep, 8 Ace, chips & curries in front of the widescreen TV watching Sky
one. Beat up Ford Escort outside, a PS2 and cheap widescreen TV
inside. House looks a tip tough. I can see dozens of houses like that
on the way to work.
--
This post does not reflect the opinions of all saggy cloth
cats be they a bit loose at the seams or not
GSX600F - Matilda the (now) two eared teapot, complete with
white gaffer tape, though no rectal chainsaw

"Gaz" wrote in message
...

"Doug Ramage" wrote in message
...

I assume you don't have the capital resources to do it yourself?

If i was built, and as tough as a menacing bouncer, it might be an
option...

I came across a local guy who was prepared to rent out machines with an
option to purchase and/or upgrade. Iwas going to use the rent option,
but
when I calculated the "interest" rate, I decided an outright purchase
was
cheaper - but a lot of others did.

The capital depreciation of computer hardware is so quick, you could end
up
with a lot of junk.... Worth a thought though.....

Gaz


Doug Ramage



IIRC, his minimum rental period was 1 year, and estimated the residual value
at 30%.
--
Doug Ramage

That will be part of the stratagy, but you would be surprised about the
profile of people who spend money on consumer goods. It's the Council
estates that have the latest W/Screen TVs, the first to have Satellite TV,
the council estate kids, the first to have the latest fashionable
clothes....

Gaz


Correct and true, but as I said earlier.....

a) you have to get a consumer credit licence
b) your council estate punters will have to pass a credit check, that will
remove about 80% of your custom. Dixons can deal with finance companies and
dictate rules in a way you can't. The only finance companies that will deal
with you, especially on electrical goods with little or no 'reposession'
value, will be pretty strict on their credit control.

I've made a living from selling computers for the past 10 years, and worked
in the computer industry for about 15 years before that (Pre PC Obviously)
and I would say that I've come to fairly near the end of the road with it.
The margins have gone, any warranty claim wipes out all your profit,
delivery costs and courier performance are crap and punters are more aware,
and net aware, of how to get things cheaper.

How much profit do you reckon you'll make on a system ? (Remembering to keep
your OS licence legal of course) Joe Bloggs in the street will squeal about
paying for a Win licence but he won't be slow in going to Trading Standards
if your computer breaks down on him. Even if your chosen distributor RMAs
quickly and efficiently, you'll still have to bear the cost of warranty
claims in the short term.

I seem to remember another post in this thread where you said you'd been
doing repairs 'to get experience' (sorry if I'm wrong about this), but isn't
that a sign you're in a saturated market and you haven't thought it through,
where you think you can enter a market against major international companies
and established local competition, and by your own admission, you don't
really know what you're doing ?

Good luck to you mate. It's a tough game spending 500 quid to make 50.

Cheers,

Ally.

That will be part of the stratagy, but you would be surprised about the
profile of people who spend money on consumer goods. It's the Council
estates that have the latest W/Screen TVs, the first to have Satellite TV,
the council estate kids, the first to have the latest fashionable
clothes....

I'd like to see some proof to back this statement up!