Processing time for FCA applications set to rise - submit yours today
Posted on in Business News , Cycles News
If you've been thinking about offering your customers finance but haven't yet started the application process, now is the time to act!
Since 1st April 2014 when the FCA took over responsibility for Consumer Credit, changes were made which mean you could be offering your customers finance (with a range of APRs and loan lengths) for just £100 by submitting an application to the FCA.
According to the latest FCA Data Bulletin the average turnaround time from application to acceptance is 7.7 weeks. However, the FCA now say this is set to increase.
The FCA state: "We expect that the average time to determine an application will increase over time. This is because application volumes have been increasing and we will still be determining the more complex applications from earlier application periods, so a larger proportion of applications will be taking longer to determine."
Submit your application to the FCA today to ensure your application is approved as quickly as possible. Alternatively, you could consider offering only 0% finance up to 12 months, as you no longer need to be authorised to carry out this type of activity.
As announced on 18th March, retailers who offer 0% (interest free) finance up to 12 months no longer have to be authorised and regulated by the FCA, or be liable for the annual fees and charges involved.
This means any cycles or outdoor retailer can simply apply to V12 immediately and be offering 0% finance in time for the busy summer months.
There are currently over 800 retailers offering finance through ActSmart's Ride it away and Take it outdoors schemes, accounting for £60m of new sales every year!
Ride it away and Take it outdoors are available exclusively to ActSmart Gold subscribers who will benefit from:
- Free V12 set-up worth £495
- Personal support throughout the application and FCA authorisation process
- No minimum finance turnover requirement
- Payment issued by V12 same day and in your bank within 4 days
- National promotion on the Ride it away and Take it outdoors consumer websites
- Access to FCA compliant in-store POS material
- Access to web banners and a customisable finance calculator for use on your own website
So, whether you want to offer the full range of APRs and loan lengths to give you more control over your margins and sales, or you just want to make 0% finance available, contact us today to get started.
Click here to find out more and request your free application pack or contact us on 0845 618 7256.
Already offering finance? Make the most of it!
Ride it away and Take it outdoors is not just for the big ticket items like bikes; you can also offer customers the opportunity to spread the cost of parts and accessories on their own, in a bundle or as an add on to a larger purchase. Giving customers the opportunity to buy whatever they want makes up-selling easy.
By spreading the cost, higher quality items become affordable and additional products can be added to the transaction for only a few extra pounds per month.
One of the easiest ways to do more sales via finance is to make your customers aware of the options available to them. Use POS items on products to show just how little an item can cost each month.
A full range of FCA compliant POS is available, including ceiling banners, swing tickets and window stickers. Click here to find out more.