Nairalanders,please what do you know about Hire purchase,I was discussing with my friends and we decided to start a hire purchase business on laptops,phones,pdas and all that,I need your advice on this matter and know how.

Debt collection will make your lives hell if you don't know something I don't know!

Nigerian debtors are more unreliable than NEPA. They can be relied upon to default.

Seun,we will only give to those with steady source of income and have their emplyers sign before we supply them,as in only workers.

That's a great idea. People with stable salaries would not need hire purchase for inexpensive items like phones, but for laptops and more expensive gadgets I guess they would find that useful.

So, let's say I want to buy a 240k laptop. How much will I pay per month and for how long?

We intend to collect 30% as down payment and we will stretch out the remaining balance over a period between 5 and 7 months for every item.

Brother, honestly I think you would want to do more research on how credit institutions work, especially in developing countries.

You can auto-debit someone's account monthly true, but one thing you need to know is that, nobody would agree especially in a country like Nigeria for a third party to have rights to auto-debit his account monthly.

Another thing is in developing countries that have credit facilities, there are proper laws and agencies in place that can check the credit status of individuals to determine whether they are qualified or not, this they do with even ensuring that the person has a stable job, meets an income requirement, has a steady savings of money in his or her account during the past years.

Is that possible to be able to determine in a country like Nigeria? I think proper financial knowledge and background is needed to pull this off, not just the desire to run the business.

You can auto-debit someone's account monthly true, but one thing you need to know is that, nobody would agree especially in a country like Nigeria for a third party to have rights to auto-debit his account monthly.

How would you know? Do you live in Nigeria? We can speak for ourselves, thank you!

I think proper financial knowledge and background is needed to pull this off, not just the desire to run the business.

"Proper" knowledge is easily obtained by someone with the desire to make money from a business.

Another thing is in developing countries that have credit facilities, there are {{blah blah blah blah}}

Whatever they have, we can easily get in Nigeria if we see the need. If Roscodaddy talks to potential customers and they express interest, then he can go ahead and do whatever needs to be done.

We intend to collect 30% as down payment and we will stretch out the remaining balance over a period between 5 and 7 months for every item.

How much will be the interest on the item? I just need an approximate figure, thanks.

hmm Seun, what does my location have to do with my opinions? I think the forum is on the internet for a reason? What matters is whether my opinions mean something or stand validity.

@ROSCODADDY
Are u going to asked for credit insurance from your Debtors
in case they become unemployed and can't pay?

@ Roscodaddy
I'm very interested. What's ur interest rate, do you have a website or how do i contact you so i know what products you offer?

Fntekim,we are just starting and am bulding the website as we speak,wat kind of products do you want,let me know,the interest rate depends on the cost of the item you want.Let me know.

nico:

@ROSCODADDY
Are u going to asked for credit insurance from your Debtors
in case they become unemployed and can't pay?

That is a good one but here we don't have such ,I guess we will only start with some little items,that we can recover quick,.

fntekim:

@ Roscodaddy
I'm very interested. What's your interest rate, do you have a website or how do i contact you so i know what products you offer?

Thaat is a very brillant idea. So far you can stretch the payment plan and can work out a convenient payment plan. Why not also think about collecting post-dated cheques. Proper documentation should also be in place and make ensure you conduct a proper KYC know your customers on your clients. My brother does something like that 2 but its still on a small scale and for mainly friends and c0o-workers. Also ensure your friends have at least 2 guarantors. You need to do proper documentation. Would be glad to assist if its needed.

Take charge,
You will suceed

Just wondering what cellphone technology is used in Nigeria CDMA or GSM? Sorry to hijack your post looking to do business there.