Duologi

Merchant Login

Duologi
  • Sectors
    • All
    • Retail
    • Home Improvement
    • Legal
    • Education
    • Healthcare
  • How it Works
  • Switching Finance Provider
  • New to Finance?
  • About Us
  • Retail Finance Blog
  • Get in Touch

Retail
Finance
Blog

  • Ideas for you
  • News
  • Case studies
https://duologi.com/wp-content/uploads/2020/05/point-of-sale-card-terminal.jpg

The Facts About Customer Financing

Friday May 22nd, 2020

The Facts About Customer Financing

The benefits of offering customer finance are many and varied, as you’ll know if you’ve read some of our other articles on the subject. In a nutshell, Duologi’s flexible payment solutions offer your business a clear route to:

– Increased sales
– Better rates of customer satisfaction and retention
– A direct advantage over competitors
– A fully managed credit service handled by our team of finance experts
– Seamless online and in-store integration with your existing business model

Of course, consumer credit is also an area in which accountability and transparency are key – particularly with regards to meeting FCA guidelines. Happily, the legal implications around issuing point-of-sale consumer credit agreements through your physical or online business are relatively easy to navigate.

Even better, your dedicated Duologi finance expert will always be on hand to guide you smoothly through the processes of achieving full compliance. Let’s take a quick look at what that process might involve to begin with…

CCLs and FCA authorisation

You may have read about Consumer Credit Licenses (CCLs). These were a method by which the OFT (Office of Fair Trading) kept track of organisations set up to offer particular types of customer credit. Since the FCA (Financial Conduct Authority) took over the regulation of consumer credit in 2014, these have been replaced by the FCA authorisation process. One of the first subjects you’ll need to address when deciding to offer customer finance will be whether or not you need to be authorised by the FCA. Authorisation serves multiple purposes:

– FCA authorisation requirements help to ensure that only enterprises with an appropriate business model and management structure are approved for use of certain longer-term (or higher interest) financing solutions

– Being authorised by the FCA means that you’re legally obligated to follow key financing rules with regards to sales contracts (as outlined in the FCA Handbook), as well as relevant sections of the Consumer Credit Act (CCA) and Consumer Protection from Unfair Trading Regulations

– As well as helping the FCA ensure that you’re fully compliant and transparent in your approach to credit options, authorisation therefore also offer a measure of protection and confidence for the prospective buyer – they serve as a reliable indication that yours is a proactive, professional and customer-focused business

Do I need a license to offer customer finance?

As noted above, not all credit arrangements strictly require authorisation by the FCA – this will depend largely on your individual choices about which customer finance packages you want to offer, and the specifics of how they work. Broadly speaking:

– You will have to apply for authorisation if you’re offering payment plans that extend beyond a period of one year, or if you’re aiming to charge any interest on scheduled instalments

– However, if you’re only offering customer finance for periods of 12 months or less, and exclusively on a 0% finance (i.e. wholly interest free) basis, then you may not need authorisation

If you’re setting up customer finance options that do require FCA authorisation, you’ll be guided through the relatively straightforward application process by your assigned Duologi team member.

To begin the application, you’ll need to provide some key documentation about your business and the exact offer you’re providing. In the first instance, this might include such things as credit package draft agreements, pre-contract information and promotional literature – anything that helps the FCA to clearly see what it is you’re offering your customers.

Much of this credit documentation can be provided directly by Duologi – and we’ll also help you identify and organise any information that needs to come from you or your company.

Duologi makes it easy

As a forward-thinking, customer-focused business just like yours, we pride ourselves on making these processes run as smoothly for you as you’ll want them to for your customers. To that end, once you’ve got your business set up to offer a range of flexible payment solutions, we’ll manage every aspect of your POS customer credit arrangement for you.

Duologi’s dedicated team of relationship managers will be your personal point of day-to-day contact, from initial set-up and training right through to helping your sales grow. Not only does this mean you can get on with running your business free from distraction or complication, it also means that your financing arrangement doesn’t interfere with other key metrics such as cash flow or employee time.

Our technologies are easy to integrate with your own, with plug-ins available for all major eCommerce platforms, and we’re happy to provide any point-of-sale marketing materials to help you advertise your new customer finance options to your buyers.

For more detailed information about offering consumer finance arrangements, or to talk to us further about integrating any aspect of our services into your existing business, feel free to get in touch any time.

Share this idea

Share on Facebook Share on Twitter Share on Linkedin Share by Email

More ideas for you

6 ways offering point-of-sale finance can boost your sales

6 Ways Offering Point-of-Sale Finance Can Boost Your Sales

Learn more ›
A chip and pin device

How can offering financing increase sales on consumer electronics?

Learn more ›
Boiler Financing

How to offer boiler finance to your customers

Learn more ›
Wrapped Christmas gifts

How to offer finance options to customers at Christmas

Learn more ›
A brunette woman making a payment on her laptop

How to offer financing easily and boost Black Friday sales

Learn more ›
Garden area with chairs on artificial grass

Everything you need to know about offering outdoor living finance

Learn more ›
H20 Hot Tub

Everything you need to know about offering hot tub finance

Learn more ›
A tradesman wearing a tool belt

The Dos and Don’ts of Offering Finance as a Tradesperson

Learn more ›
Decorating materials in a blank room

How to Offer Finance to Home Improvement Customers

Learn more ›
A newly installed kitchen

What is Home Improvement Finance?

Learn more ›
A newly installed orange kitchen

The Benefits of Offering Home Improvement Finance to your Customers

Learn more ›
A mother and daughter packing for a holiday

What is the Consumer Buying Process?

Learn more ›
Office Workers

4 Consumer Finance Benefits for Business Owners

Learn more ›
Women opening online order

How to Improve Customer Experience Online

Learn more ›
Retail finance duriong covid

Consumer Buying Behaviour During Covid

Learn more ›
A brunette woman making a payment on her laptop

How to Get Customers to Spend More

Learn more ›
A brunette woman making a payment on her laptop

7 Ways to Increase Repeat Sales

Learn more ›
A couple being shown destinations by a travel agent

How do I get financing for my customers

Learn more ›

How to Retain Customers Online

Learn more ›
Shop assistant offering finance using a tablet

Finance for Customers of Small Businesses

Learn more ›
A brunette woman making a payment on her laptop

Can You Pay Off Finance Early?

Learn more ›
A woman holding a credit card over one eye

What affects your credit score?

Learn more ›
Dog lying on artificial grass

8 Most Common Questions about Pet Finance

Learn more ›
A stylish well lit living room

New Year, New Decor: Finance for Home Improvement in 2021

Learn more ›
Wrapped Christmas gifts

Duologi’s Top 10 Money-Saving Tips for Christmas

Learn more ›
A woman holding a credit card over one eye

Black Friday during a pandemic

Learn more ›
Consumer using laptop

The Secrets Behind Running an Ecommerce Business

Learn more ›
A piggy bank next to a toy shopping trolley

How We Offer Customer Finance

Learn more ›
Women opening online order

10 Ways to Increase Average Order Value

Learn more ›
A couple shaking an estate agents hand

Why Offer Credit Facilities to Your Customers?

Learn more ›
A woman holding a credit card over one eye

How to Start Offering Finance to Your Customers

Learn more ›

Coping with change

Learn more ›

The Benefits Of Offering Dental Finance

Learn more ›
A piggy bank on top of a calculator

The Value Of Offering Payment Plans For UK Customers

Learn more ›
A man paying with his card on a laptop

Why Responsible Lending Matters

Learn more ›
Shop assistant offering finance using a tablet

How to Offer Customer Financing in Your Business

Learn more ›
Businesswoman in showroom

What is Retail Finance & How Does it Work for Businesses?

Learn more ›
Patient getting dental treatment

The Benefits Of Offering Patient Finance

Learn more ›
Patients in waiting room

5 Tips to Attract More Patients to Your Practice

Learn more ›
PDS2 graphic

What is PSD2 And What Does It Mean For Online Retailers?

PSD2 is the Revised Payment Services Directive issued by the European Commission for innovation, improvement and internet payment safety. The first payment services directive, PSD1, was adopted in 2007, to establish the same set of rules on electronic and non-cash payments across the European Economic Area. The revised directive was adopted in 2015, and became applicable in January 2018.

Learn more ›
Abandoned cart

Refer rates and basket abandonments: how do yours stack up?

Basket abandonment. It’s a headache for online retailers and top of the to-do list for many digital marketers

Learn more ›
Security

Online fraud and how to fight it

Online fraud and how to fight it Trust is the foundation of any relationship – and the one between business and customer is no different. The customer must trust that the business is selling what it says it is – and the business must trust that the customer is who they say they are.

Learn more ›
Legal Sector

CCLs: The lowdown

If you’re offering credit to your customers via point of sale (POS) finance, then they’re something you need to think about. CCLs are issued by the Financial Conduct Authority (FCA) and are a crucial element in your overall business compliance. They also help to highlight your proactive and customer-centric approach

Learn more ›
GDPR represented by padlock

What actually is GDPR

The General Data Protection Regulation (GDPR) came into effect in the UK on 25th May 2018. It’s an acronym that has been covered widely in the media and discussed at length in company boardrooms and it has a major impact on the retail sector – but making sense of GDPR can be complicated. What actually is the ruling and what does it mean for your business?

Learn more ›
Consumer using laptop

Multi-channel retail: What do your customers expect?

Multi-channel is the new normal for retailers.

Learn more ›
Stick with me lights

How to keep your customers coming back

Building customer loyalty is a key challenge for any retailer. Whilst targeting new customers is important to broaden your target market and increase conversion rates, rewarding current customers is essential to enhance customer experience and customer satisfaction. This is to ensure the come back to you in the future and not to your competitors. The question is – how?

Learn more ›
Handshake

How to sell finance

So you’ve decided to offer point of sale (POS) finance solutions to your customers. Great!

Learn more ›
Man and 0

The myths and opportunities of 0% finance

The appeal of 0% finance offers to end users is clear – it’s free. It offers a quick and easy way for them to purchase the high-value goods or services they want, without a hefty upfront cost.

Learn more ›
Coins in jar

Acceptance rates vs subsidy rates

Thinking of introducing point of sale (POS) finance? You’re probably interested in how much it is going to cost.

Learn more ›

grow and
succeed

Time to talk about you

  • Home
  • About Us
  • Get in Touch
  • How Financing Works
  • Retail Finance Blog
  • Thinking of switching
  • New to Finance?
  • Jobs
  • Faqs
  • Resources
  • Complaints
  • Privacy Policy
  • Terms of services
  • Oaktree Capital
  • Financial Conduct Authority (FCA)
  • Get in touch
  • Call icon0345 521 1881
  • Mail icon sales@duologi.com

Connect with Linkedin


Duologi


Duologi is a trading name of Specialist Lending Ltd which is a limited company registered in the UK under number 10664999 at the registered address The Square, Basing View, Basingstoke, England, RG21 4EB. Authorised and regulated by the Financial Conduct Authority. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

© Copyright 2023 · All Rights Reserved

Site by duologi Websites

We have placed cookies on your device to support a better browsing experience for you. By proceeding to use this website, you consent to the use of such cookies. You can find out further information about the Cookies used and what they are used for here Information and Settings.