View Full Version : Rental risk
Say i have a product x, now i people want to buy it in installments, i dont mind this, but then i have to play bank and sit with the dept for 24 months. is there a company that will handle this for me, like pay me my money albeit a bit less then play bank with the consumer.
07-05-2008, 09:31 PM
Selling drugs is illegal :p
thanks for the idea, me goes off to speak to the Godfather :rolleyes:
07-05-2008, 09:40 PM
You'll basically need a money collector of some sorts, the guys playing bank for you. I don't know who does this though, loan sharks come to mind ;)
i see the following issues by playing bank myself.
1. I think i must get registered as a credit provider ? which is stupid for a few products like this a month.
2. I have to sit with the dept for like 24 months witch, is kinda stupid an a tight profit margin. and i have to get a bank loan ect to cover this.
3. if the guys done pay, i have to run round persuading them.
07-05-2008, 10:38 PM
Sucks ;) Hope you get someone to do it.
07-05-2008, 10:58 PM
What about a property rental agency?
Maybe one of them can help u out, or point u in the right direction.
07-05-2008, 11:05 PM
Sasfin and some other companies do rental deals. I know Sasfin helps you through the whole deal and as soon as the client signs off you get paid and they repay Sasfin.
It depends on the product you're selling the reputation of your business. Banks call this factoring. They buy your debtors book for a certain price, based on factoring guidelines etc. They then assume collection responsibility. In essence, they have given your Clients loans at high interest rates, because you've paid for it. It is an easy way our for businesses needing cash to stay afloat ... its called factoring. Not sure whether all banks do it - check with a Merchant Bank.
you dont know what that product from Sasfin is called ?
that sounds like what i am looking for
08-05-2008, 10:59 AM
FYI, this might be a good idea but is a pain in the balls. The company I worked for when i started out did that, and they had investors willing to dock up about 500k for it. It can become profitable and you just setup a debit order against the person's name.
But like you said, its a night mare trying to get money out of deadbeats
Why do you want to go this route anyway if it's a tight profit margin to begin with?
firstly if i offer it installment sale i can make a bit more money as i will sellmore units, a guy may be able to afford R200 pm for 24 months, but unable to get eg 10 000 now
so any one else got any ideas ? i did phone sasfin today and hopefully the guy will e-mail the details, but from what i understand they will only do it for 120 days, i need at least a year. How does a normal small company do a rental agreement, surly it must mess up there cash flow ?