Offering Finance to clients

[Soundinmind]

Good day,

I import very expensive equipment that makes it slightly hard for some clients to buy in one go. Ive been considering offering finance options to the clients but through my company, a seperate division of the current company. I wanted to find out if there is any legal problems with this other than the contracts need to be well done in order to claim if they fail to pay. I know the first thing you'll say is not too or to send them to the banks, the problem comes that banks dont understand these clients needs and will either give them a high interest or wont help them.

So Im willing to take the risk but I want to be sure Im not crossing any laws here

[Dave A]

Just keep an eye on the consequences of the National Credit Act.

[Soundinmind]

In regards to what it statements or is there a statement preventing me from offering finance to them?

[Dave A]

The NCA doesn't prevent you from financing - it just has a number of requirements that need to be met.

[AsoganP]

comment to offering finance

We have a company which specializes in Asset Based Finance. We do take the time to understand our clients businesses and the environment in which they operate. The are many factors and risks to take into consideration when dealing with Asset Based Finance, including but not limited to NCA. If you are interested, we can chat further.

[Macfudder]

Assuming you have squared away the financing issues, you can mitigate risk by making insurance part of the contract especially for fire and theft risk. You might be able to do credit insurance and marine in terms of your side of the payment to the suppliers and the possible default risk you take on.