In this article, we look at how boiler and heating companies can offer finance options to their customers.
1. Applying for the consumer credit license
In order to offer finance options, a consumer credit license with full permission must be obtained from the financial regulator, namely, the Financial Conduct Authority. The license is called a consumer credit license. Under the license, you must apply for the permission of credit broking.
You will require a ‘full permission’ consumer credit license in order to offer finance on your heating products. The permission under the license involves providing credit broking where the sale of goods or service takes place in the customer’s home.
2. Preparing the license application
In your consumer credit application form, you must provide certain information. This includes information about your business, customers, people and compliance, including:
- explanation of your business, its background and what it does
- business objectives, including business opportunity and aims
- your customers and marketing strategy
- details of your key people, their experience and background
- how you will monitor compliance
- details of risks you have identified and how you will manage them
3. How long it takes to obtain your license
You should allow 2-3 months from the date of submitting your application for the license to be granted.
This will be the case if you have provided all the required information as otherwise, it will take longer to process your application.
4. Managing your business in a compliant manner
In order to maintain your consumer credit license, you must manage your business in a compliant manner, ensuring good conduct at all times. For example, you must ensure that any financial promotions are fair, accurate and not misleading to your customers. Similarly, you must treat your customers fairly. You must demonstrate that this is at the heart of your business.