yeah I am a big fan of keeping it simple. I think the financing...

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BirdOfPrey

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21/02/18

07:56

Post #: 31207048
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Originally posted by ironball ↑

gathering the posted info, it seems to me the worst case scenario is BIG may have used the same method as Harvey Norman which most of the income not from the direct sell the products, but from equivalent to sale the finance credit to FCC through pre-arranged partnership. Harvey Norman sell most of its goods with very little or no margin but make money from sale of installment to the lender and volume discount from the manufacture. Few years ago AFR has an article made the similar argument of BIG to Harvey, but was pissed because any installment debt issue will only attribute to the lender, not Harvey.

It seems this is the same scheme used by BIG, he get the cash advance from FCC by sell the credit to FCC, and BIG will guaranty to supply the product and service while the installment still going. FCC may get 10% per financed customer plus interest for lending the money. Really hard to see why this is an issue, because no middle men in BIG's products, it's a win-win for both BIG and FCC and BIG can make lot of money from this scheme.

Many posters here seems outraged that FCC may be took 10-20% from each financed customer, but why not, it is industrial standard that manufacture to cut 30% fat to the distributor, and the partnership with FCC really can get mass customers. I also think the deed which FCC take the house as insurance is justified because BIG was a new start up company and it is a greater finance risk to FCC so it require the house to be taken as the insurance is reasonable.

I'm confident it will be ok.

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yeah I am a big fan of keeping it simple. I think the financing gives big access to a lot of customers they would not have gotten. If I am not mistaken they don't even use this option at all for US customers which is the fastest growing segment.

the article just seems like a rehash of largely public info with some anecdotal stories.

I think big will sort it all out and move on. this 's not a touch on the massive gsw debate. not even in the same ballpark. I truly feel for those poor souls over there

BIG Price at posting: $2.22 Sentiment: Buy Disclosure: Held
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yeah I am a big fan of keeping it simple. I think the financing...

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