Home Information Pack Finance Facility
With the arrival of the Home Information Packs (HIPS), and the costs associated with these packs, many Hips providers have been searching for a finance solution to allow their clients to stretch the cost of the Hips packs over a period of time. Essentially what is required is a consumer finance facility.
Finance facilities come in several forms, but in essence, a finance facility, is a means whereby the Hips provider can offer a credit facility to their customer to allow them to spread the payment. A Standard finance facility is usually a DCS ( Debtor creditor Supply) arrangement, this means that the Hips provider is paid directly by the finance provider, unlike a personal loan which would be paid to the client. This has obvious advantages, especially from a cashflow point of view.For the Hips provider, the typical minimum requirement is usually a ccl (Consumer Credit Licence), which is obtained from the OFT (Office of Fair Trading), this can take several weeks and you will need to verify which classication of the licence you will need.
The Home Information packs are here to stay and With the recent addition of 3 bedroom properties now coming under the same legislation and the additional costs associated with moving house,ie legal, estate agents fee’s etc, the cost of the HIPS pack can be alleviated by stretching the payments over a period of time to suit the client.
With intense competition within this fledgling industry, having a finance facility to offer your clients, can have a massive boost to your turnover. Several finance companies entered the Hips finance market in the last couple of years, but seem to have since disappeared.
PinnacleCredit.co.uk now has a facility, which is available for the Hips providers, to enable them to offer credit to their clients.
Alan Reed is a financial expert and writes for the following websites,
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