PAINTING PAYMENTS

Wanganui Chronicle, Volume LXXXII, Issue 19437, 24 October 1925, Page 22 (Supplement)

PAINTING PAYMENTS

A unique system of deferred payments for painting houses is being urged in England at the present time. The following extract from a London paper outlines the scheme:— The decorator finds a householder who wants to paint and pay for same over a period of time. The decorator submits estimate, including in it an additional 10 per«cent. If satisfactory, the householder signs an application for a loan, agreeing to pay 20 per cent, or more in cash to ths decorator on completion of the work, and the balance to a finance company in equal monthly instalments with interest at, say. 6 per cent, per annum on the unpaid monthly balance. Ths application is submitted to the i finance company, which investigates [the credit of the householder, and aci cepts or rejects the loan. A nominal charge is made by the finance company Hot each credit investigation. The decorator is advised, and, if application is accepted, proceeds with the work. On satisfactory completion of the work, the decorator renders the bill to too householder, who pays to the decorator the cash payment agreed upon. The decorator forwards the bill, showing amount, paid and balance due, to the finance company. The finance company pays the decorator the amount still due, less a discount of, say, .10 per cent. No reserve is hold by the finance company. The decorator has received payment in full for his services. The agreement is a direct obligation on the part of the householder to pay the finance company. Neither the decorator nor any agency of the paint and varnish industry becomes an endorser or guarantor or in any way contingently liable for payment of the loan by the finance company to the householder. No risk is taken by the decorator, and no financial liability whatever is incurred by the National Society for the Preservation of Property, the finance company taking the total risk and making its profits on the loan of the money. No share in such profits is contemplated by the Society, as it would thereby be making profit out of its decorator members. The scheme, superficially, is sound)

the public are assisted upon reasonable terms to pay for the everyday necessity of maintaining their property in a state of preservation; the financial organisation is satisfied wtih its intercet ou the loans manti. The decora-

| tor is paid prompt cash upon comfihs | tion of his work, the system cases uiw- | employment in facilitating many more i contracts the year round, and. finally. I the industry benefits by a natural in I crease in the demand for its products.