Home – New Forums Money matters Offering my customers interest free

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  • #986673
    PiJiL
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    • Total posts: 3
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    Hey all,

    Hope this is in the right thread, mods feel free to move it :-)

    My core business is home improvements between $3000-$6000.

    My larger (grrr) competitors offer the same product interest free for 24-60 months and i am losing too many customers to them.

    I have applied with GE and Fido and they want $2,000,000 and $500,000 T/O to even have a merchant account.

    Is there an interest free provider that offers 24-60 months interest free that will deal with a small business?

    thanks

    Pete

    #1159018
    nighttax
    Member
    • Total posts: 172
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    Hi Pete

    Are you sure you have spoken to the right person in these institutions and that you have explained what you want to do in the correct way. Please tell me you did not approach them and say something like you want to offer your clients the same as say Hervey Norman. Each industry and business negotiates based on what they want and what their market size etc etc is.

    In days gone by the fees you have mentioned did not exist and the reality was that the business offering the interest free period would actually pay the finance company 6% interest on the money and that 6% interest was and in some cases still is added to the price. That is probably why there is an ad on TV at the moment from a solar provider offering a small solar system with a tiny 2kw inverter interest free for $2600. Their adds a couple of weeks ago were selling much larger systems and inverter for much less. The add also says pay cash and pay less. That is probably because they have added the interest component on to the price. (although it would not be worded that way for legal reasons)

    That is the sort of system you would likely try to access. What the industry is doing today may have changed but I would be surprised if it had changed that much.

    Hope this helps
    Evan

    #1159019
    PiJiL
    Member
    • Total posts: 3
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    Thanks for the reply Evan,

    I have applied and been rejected as per the reasons listed.

    That solar company uses GE finance who only deal with $5mill plus turnover.

    I am looking for a finance company who offers interest free (Fido charge a 25% merchant fee) for my small business.

    Pete

    #1159020
    alliedib
    Member
    • Total posts: 453
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    Hi Pete,

    Where I live, one of the furniture retailers has joined with the local credit union to offer ‘interest free’ – perhaps this could be a solution?

    Just be careful if you decide to offer finance to customers (other than referring them to the financier)- this shifts the goalposts considerably.

    Regards,

    Mark

    #1159021
    LucasArthur
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    alliedib, post: 183462 wrote:
    Hi Pete,

    Where I live, one of the furniture retailers has joined with the local credit union to offer ‘interest free’ – perhaps this could be a solution?

    Just be careful if you decide to offer finance to customers (other than referring them to the financier)- this shifts the goalposts considerably.

    Regards,

    Mark

    HI Mark

    Hope you are well mate.. Just curious if you have more details re how the retailer and the credit union are fulfilling this offer? eg is it purely a handball? and in house offer? etc etc am curious, could be an awesome partnering experience for some businesses… talking about thinking outside the box!

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1159022
    alliedib
    Member
    • Total posts: 453
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    Hi Jason,

    I think it just a pre-arranged referral… I will try and find out some more information for you…

    Regards,

    Mark

    #1159023
    LucasArthur
    Participant
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    Hi Mark

    Thanks mate, dont go out of your way although if you have the time or are in a position to elaborate that would be awesome…

    Take care
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1159024
    No Limits
    Member
    • Total posts: 44
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    Have you tried Certegy Ezi-Pay?

    #1159025
    Assertive
    Member
    • Total posts: 1
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    Hi Pete,

    How did you go?

    I was recently made redundant so I have gone to market myself in retail/wholesale and am finding this tough too.

    Certegy won’t touch me because I am based from home and not a business address, plus I am new.

    I have found one company ASM Money but they have upfront costs to me and seem to be dragging their feet a bit.

    If I find something else I will re-post but let me know how you went please.

    Damien

    #1159026
    Past-Member
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    Would your customers be the type that had credit cards that could pay the $3000 to $6000 average? That might be a better way to go. Visa and Mastercard. (There’s a thread somewhere on here about different suppliers for credit card facilities.)

    #1159027
    Sheena15
    Member
    • Total posts: 1
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    Hi!
    I know this is an old thread but did you find any interest free options to offer your customers? We too are looking for this for our customers but I am having the same trouble with needing $2mil turnover
    Thanks in advance

    #1159028
    Alan Maddick
    Member
    • Total posts: 410
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    Fund it yourself or find a private investor to fund the project? Considering returns on “interest free loans” are generally around 12% or higher they can be a lucrative additional interest stream for your business or you can find an investor who is happy to earn this income. With paperwork done correctly risks can be quite low. (but paperwork burden is a little high)

    Another thing we have done with a client is team up with a mortgage broker who then sources the best finance for the clients (either mortgage re-draw or personal loan or asset loan attached to the new asset) the broker then shares commission back to the business. Win win all around. :)

    #1159029
    Paul – FS Concierge
    Keymaster
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    Have you tried this company or it’s competitors?

    #1159030
    Adam Martelletti
    Member
    • Total posts: 47
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    I found most of those companies that off interest-free like Certegy Ezi-Pay look good on the box until you read the fine print, It can leave you out of pocket more than expected and leave your customer feeling very frustrated as there are so many grey areas, unknown fee and charges.

    We also wanted to offer interest-free payment plans for our client’s jobs ranging in the same price range $3000 – $10,000 the best solution for us was to engage with our own lawyer have a payment agreement drafted up cost around $3000 and we use ezidebit to handle the payment for requiring direct debit.

    The contract was drafted for our company and needs, We have a small establishment cost apart from that no other fees, charges or interest how ever the only problem with this setup is you have to wait for your fund where Certegy Ezi-Pay will pay you up front minus their XX% for taking on the risk we broke it down and was way more viable to engage with our own lawyer in the long run and better protection. Happy to elaborate more on it if you want

    #1159031
    akagrp
    Member
    • Total posts: 315
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    Try[URL=’http:// https://zipmoney.com.au/’%5D https://zipmoney.com.au/%5B/URL%5D , which ever way you look at it a fee will apply no such thing as interest free from a Merchant View point

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