Do I Need a License to Offer Finance to My Customers?

License Finance

Offering finance to your B2B customers is a truly powerful way to increase sales, retain custom and maintain a long-term relationship that could lead to multiple additional transactions. It’s very easy to set up and you’ll be amazed that you didn’t consider it sooner, such is the positive impact it will have on your sales funnel, cash flow and monthly revenue.

The question is, do you need a license to offer you customers finance? The answer is yes… and also no. How very mysterious!

Yes, you do

Are your customers either sole traders or partnerships with only two or three partners? In that case, yes, you do need a license in order to offer them finance. Specifically, it’s a Consumer Credit License that’s issued by the Financial Conduct Authority, or FCA.

Yeah but… do I really need one?

Oh yes, you definitely do. If you offer finance to a sole trader or small partnership without a license, it’s a criminal offence. Aside from potentially being prosecuted and facing a fine or even imprisonment, the customer is also within their rights to not honour your credit agreement, further adding to a problem that would have been very easy to avoid.

No, you don’t… although…

If your customer is a limited company, you’re good to go without a license. The result is the ability to offer limited companies flexible finance options without needing to take out a license. However, we’d believe it could still be worthwhile getting one, as you never know who your future customers may be.

Get a license for free

The good news is that the team here at Synergi Partner Finance can manage your application for you. We’ve helped countless businesses to get a Consumer Credit License from the FCA with minimal effort on their part, which has allowed them to take on as many customers as they wish thanks to the availability of flexible repayment options.

Why should I offer finance?

Just in case you’re not entirely convinced that offering finance to your B2B customers is right for you, check out these amazing benefits:

  • Businesses that offer point-of-sale finance are 63% more likely to close a sale
  • We run credit checks to ensure that your customers will be able to make their payments
  • Finance enables your customers to invest in their own businesses right away, which can often mean the difference between them simply surviving and genuinely thriving
  • Offering finance strengthens your brand and enhances its reputation
  • The option to pay in multiple installments often leads to a customer choosing a more deluxe product or service rather than the cheapest version, which is great for your business whilst allowing them to improve their own
  • We manage the process for you and explain everything in no-nonsense language, plus you’ll always have a dedicated account manager who understands the needs of both you and your customers
Need a license?

We’ll help you to obtain your Consumer Credit License quickly, easily and completely for free. To get started, give us a call on 0333 242 3311.

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