DSG Group status / * * Warning for those purchasing from DSG (Currys/Dixons?PCWorld)

Browntoa

they are not stupid, if you don't adhere to the terms or cannot raise the funds at the end of the interest free period then they will charge you around 29% interest for the honour

Typical APR of 29.5% commencing 12 months after order confirmation

cdam

Whilst they wait the 12 months to rip people off they have reduced their cashflow, my point being, will they still be in business in 12 months with such a reduced cashflow? It has done for better companies that Curries in the past, and in less shaky financial times.

Alan_T_2

cdam wrote: »

Whilst they wait the 12 months to rip people off they have reduced their cashflow, my point being, will they still be in business in 12 months with such a reduced cashflow? It has done for better companies that Curries in the past, and in less shaky financial times.

Surely they will get the full sum almost immediately from the finance company, barring any commission etc?

TehJumpingJawa

cdam wrote: »

Whilst they wait the 12 months to rip people off they have reduced their cashflow, my point being, will they still be in business in 12 months with such a reduced cashflow? It has done for better companies that Curries in the past, and in less shaky financial times.

Surely it depends if it's cash flow or liquidity that is their Achilles heel?
Either way, couldn't they simply sell on that debt to a 3rd party if they needed short-term funds? (unless as Alan_T has pointed out - they already do this!)

savemoney

That's what I thought. The 12 months interest free will be paid fro by the finance company, who in turn will claw that back once the interest free period is over

Quiet a lot of companies do this so it isn't just Curry's

Alan_T wrote: »

Surely they will get the full sum almost immediately from the finance company, barring any commission etc?

Browntoa

and Currys have probably released the money for what was stuff in the stockroom already , worse thing you want in a recession is a pile of stuff sitting around unsold

D_e_n_i_s_e

Currys 'with (X) you in mind'

it would be intresting to know what people think of the (X)

SpongeBob_NoPants_2

D_e_n_i_s_e wrote: »

Currys 'with (X) you in mind'

it would be intresting to know what people think of the (X)

What?.... you mean they are DEAD?

nick66

Currys do get the money instantly from the finance company... the problem is not the interest free period offered but with the finance company turning down applications to buy products on finance thus resulting in a downturn in takings. Businesses who reply on finance companies offering credit to customers (cars, sofas, electrical stores etc.) are facing troubled times.

cdam

As I said in my first post, I'm no economist, obviously judging by the above posts!! Ho hum, at least I understand how interest free works now.

Just a point, where do the finance company get their money from then, if they don't see the cash for 12 months? Surely we won't see the unthinkable sight of a financial institution going bust will we...