Driving Instructor & Pupil: Financial Query

I imagine this is why most places don't do this. Is there a particular reason for your doing it? If you split that up to weekly, it's about £16 per week - not much less than I paid per lesson.
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Aaron Pollock
BoSPEAK">href="http://www.bospeak.com">BoSPEAK Ltd

No expert but think that for a business to give credit to a customer you have to comply with many rules, they would have to sign a credit agreement, you would then have `some` protection. I would suggest that unless it woul;d bring in a lot more business, it would not be worth it. You need some `expert` advice.

hi, i think it might bring in extra, as to be honest the average number of lessons students take now is 40, over 6 mths...i'm just trying to make it easier for them to afford it, but it does leave me open to people abusing the system...on average students spend around £35-40 a week, I am trying to halve it, it might affect my cash flow though... also i can bump up my hourly rate within the total price subtley..// speaking to students they'd go for it...but..it's how it affects me

What if when they turn 16 (1 year before 17) you offer a prepayment plan to take the hassles away for next year? Bit like those hampers they advertise every October on TV for the following Christmas.
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www.youcangetit.co.uk - Business services and community. Do you get it?

If you do this then you have to accept the fact that you run the credit risk of default. Moreover the sort of people who can’t afford the weekly payments are more often than not the sort of people who are likely to default, hence the high rates of interest on these sorts of deals commercially. You aren’t exactly going to be top of the list of must pays once they have passed, you cant stop the service once it has been supplied, or repossess the licence. The main recourse you would have on default (assuming you set up some proper agreements) would be the small claims court which has varying degrees of success. I would have thought the best way to do it from your point of view would be to engage a credit company to offer the credit terms, and you to sell the debt to them at the outset. Obviously they will be taking a cut and you would need quite a lot of volume to get a deal. Might be worth making a few enquires down this line to see how small a volume of deal they will entertain. I guess the prepay option as Adam suggests would also work as an informal method.
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Hi Mark If you offered credit you would also need a Consumer Credit Licence, details at http://www.oft.gov.uk/Business/Legal+Powers/CCA+who+needs+a+licence.htm Aidan