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My company builds and sells home theater computers (http://www.gossimopro.com) and I would like to offer flexible financing to my customers... Is there legal procedures to offer financing with terms? Interest rates? etc...? Are there any companies that specialize in this? Thanks for your help!
Regards,
Justin
I would advise talking to your local financial institution. They would be the ones assisting you with the financing and would be able to give you all the necessary pieces of information for this.
What if I don't want to go through the bank. I was thinking about askinf for 25% down and 10% per month with a modest finance charge. Do I have to answer to financing regulations and banking oversight?
Thanks,
Justin
Not sure what the rules are where you are, but I believe there are limits on the amunt of interest you can charge and such. Here in Ontario, they cracked down on the pay day loan companies a year or so ago, as the interest they were charging was out of whack.
What I would do is contact a lawyer and see what they can draft up for you. You need to protect yourself when doing business and having a legal and binding contract that you can fall back on will help you later down the road. As for some suggestions other than getting your own lawyer, you could check out legalzoom.com and see what they think.
I second the call for a lawyer. Also my an accountant to help you figure out all the tax implications, and tax havens for offering in-house financing. In order to actually bind your customers into a contract, you need to make sure they put their agreement to the terms in writing. An e-signature will suffice as well.
I honestly have no clue but I'd like to know this also. I would guess you need to go through a bank of some sort -- how will you know if someone qualifies? Will you finance anyone? How will you enforce payments? Do you have money to go after someone if they don't pay?
Thanks for the information!
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