Does my business need a consumer credit licence?
You’re likely to need a licence if your business: • sells on credit • hires or leases out goods for more than three months • lends money • issues credit cards or trading checks • arranges credit for others • offers hire-purchase terms • collects consumer credit debts • helps people with debt problems • advises on people’s credit standing • administers agreements for creditors or assignees but does not collect debts • helps individuals to find and correct records about their financial standing Consumer credit regulations apply to agreements where the borrower or hirer is an individual, a sole trader, a partnership with three or fewer partners or an unincorporated association, regardless of the amount of credit or the cost of the hire. In general, credit agreements between businesses do not fall under the scope of the regulations, particularly if the credit amount is greater than £25,000. You should seek legal advice before entering into a credit agreement with another business. Unless y
