Updated: 
January 8, 2024
Next Review: 
August 2023

Bluestone

Consumer Duty Distributor Guide - Finance

Consumer Duty Distributor Guide

Version: BSL.2023.07.001F

Hire Purchase

The following documents our approach to meeting the Products & Services Outcome and Price & Value Outcome – Information for introducers and consumers of the Product 

1. Summary of our assessment

We’ve assessed that:

  • Our Hire Purchase product continues to meet the needs, characteristics and objectives of customers in the identified target market.
  • The intended distribution strategy (Direct sales and via our automated online website) remains appropriate for the target market.
  • The Product provides fair value to customers in the target market (i.e. the total benefits are proportionate to total costs).
2. Product characteristics & benefits

The product is designed to meet the needs of the target group, where key needs are; ability to finance an asset with low upfront costs and pay back in pre-agreed instalments, with flexible options at the end of term including the ability to own the asset outright. The product features and criteria are designed to support these needs.

Key product features & benefits:

Borrow from £1,000: Immediate use or replacement of Business assets

Flexible finance structures with deposits and the option of a final balloon lump sum payment at the end of the agreement: Flexibility allows for working capital to be retained in the business, with no large initial capital outlay

VAT is paid up front, or may be deferred, as well as ability to reclaim (if VAT registered): Fixed interest rate payable monthly, quarterly, biannually or annually

Payments to suit customers cashflow and business seasonality, and are spread over useful life of asset: Terms up to 7 years

Pricing (Interest rate and associated fees): Dependent on level of Risk

Early settlement options available, in line with regulatory requirements: Opportunity to upgrade assets where required

Ownership transferred to borrower for a nominal fee once the asset has been paid for in full: Enjoy the benefits of ownership


3. Target market assessment and distribution strategy

This target market assessment matrix segments the target customers for the Product, recognising their different needs to enable you to tailor the services you provide when you distribute the Product.

Customer Circumstances: The product is suitable for all UK companies and can be applied according to size and industry.

Distribution Strategy: Direct sales via our trained and qualified in-house sales function. Our Direct Sales team use a RAIN consultative approach to fully understand all customers situation, requirement and needs to make the most appropriate recommendation. Our online digital solutions via Bluestone.app.

Customer Needs & Objectives

Purchase an asset with:

  • Low upfront costs
  • Fixed, regular repayments
  • Ability to settle early
  • Have the benefits of ownership

4. Customers with characteristics of vulnerability

The Product is designed for numerous borrower types including Individuals, Sole Traders and Small Partnerships. These entities are likely to include some customers with characteristics of vulnerability or who will experience vulnerability over time.

Generally speaking, retail consumers are less likely to have a comprehensive understanding of Asset Finance or the market, therefore, they may require additional advice and support to ensure they understand the information being presented to them and the implications of the arrangement they are entering into to reduce the risk of harm occurring.

We considered the needs, characteristics and objectives of customers with characteristics of vulnerability at all stages of the design process for this Product to ensure the Product meets their needs and the Distribution channels are fit for purpose.

We have a corporate framework in place to achieve good outcomes for vulnerable customers, which includes:

  • Education and training for our staff to ensure they have the appropriate skills and experience to recognise and respond to the needs of vulnerable customers.
  • Suitable customer service provision and communications.
  • Flexible policies, where appropriate, to support vulnerable customers.
  • Monitoring to ensure we continue to meet and respond to the needs of customers with characteristics of vulnerability.
  • Requirements for all introducers to have FCA limited permissions in place.

Introducers should continue to comply with their obligations to ensure that they treat customers in vulnerable circumstances fairly.

Please contact us if you need any further information about how we support the needs of all our customers in relation to the Product.

5. Our assessment of value

Our products and suppliers are reviewed monthly in our company management meeting to ensure they continue to deliver fair value for our customers. The review includes:

Benefits: The range of features that the Product provides, the quality of the Product, the level of customer service that is provided and any other features that the Product may offer.

Price: The interest rates, fees and charges customers pay for the Product, comparable market rates, and non- financial costs associated with operating the Product.

Costs: The cost of funding the Product and any other reductions in costs to the customer made possible by economies of scale.

Limitations: Any limitations on the scope and service we provide or the features of the Product.

Results of our assessment:

Our assessment concluded that the Product continues to deliver fair value for customers in the target market.

You’ll find information sheets on other Bluestone Products on our website at www.Bluestone.app/consumer-duty

If you have any questions rising form this document please contact our compliance team on email compliance@bluestone.app or by phone on  01924 248800

For any other enquiries please contact your Dedicated Account Manager 

Consumer Duty Information Sheet Version1: 22/06/2023

Finance Lease 

The following document our approach to meeting the Products & Services Outcome and Price & Value Outcome – Information for introducers and consumers of the Product

1. Summary of our assessment

We’ve assessed that:

  • Our Finance Lease product continues to meet the needs, characteristics and objectives of customers in the identified target market.
  • The intended distribution strategy (Direct sales and via our automated online website) remains appropriate for the target market.
  • The Product provides fair value to customers in the target market (i.e. the total benefits are proportionate to total costs).
2. Product characteristics & benefits

The product is designed to meet the needs of the target group, where key needs are; ability to finance an asset with low upfront costs and pay back in pre-agreed instalments, with flexible options at the end of term including the ability to retain the asset for future usage. The product features and criteria are designed to support these needs.

Key product features & benefits

Product characteristics

Benefits

Borrow from £1,000: Immediate use or replacement of Business assets

Flexible finance structures with deposits and choice of options at the end of the agreement term: Flexibility allows for working capital to be retained in the business, with no large initial capital outlay

VAT spread across the repayment term, as well as ability to reclaim (if VAT registered): Fixed interest rate payable monthly, quarterly, biannually or annually

Payments to suit customers cashflow and business seasonality, and are spread over useful life of asset: Terms up to 7 years

Tax benefits available for profit making businesses: Efficient and cost-effective route to investing in the business.

Pricing (Interest rate and associated fees): Dependent on level of Risk

Early settlement options available, in line with regulatory requirements: Opportunity to upgrade assets where required

Infinite rental option for a nominal one-off fee once the asset has been paid for in full: Flexibility to retain the equipment for future use


3. Target market assessment and distribution strategy

This target market assessment matrix segments the target customers for the Product, recognising their different needs to enable you to tailor the services you provide when you distribute the Product.

Customer Circumstances: The product is suitable for all UK companies and can be applied according to size and industry.

Distribution Strategy: Direct sales via our trained and qualified in-house sales function. Our Direct Sales team use a RAIN consultative approach to fully understand all customers situation, requirement and needs to make the most appropriate recommendation. Our online digital solutions via Bluestone.app.

Customer Needs & Objectives:

Acquire an asset with:

  • Low upfront costs
  • Fixed, regular repayments
  • Ability to settle early
  • Flexible end of term options (return, continue renting, or retain for a one-off payment)


4. Customers with characteristics of vulnerability

The Product is designed for numerous borrower types including Individuals, Sole Traders and Small Partnerships. These entities are likely to include some customers with characteristics of vulnerability or who will experience vulnerability over time.

Generally speaking, retail consumers are less likely to have a comprehensive understanding of Asset Finance or the market, therefore, they may require additional advice and support to ensure they understand the information being presented to them and the implications of the arrangement they are entering into to reduce the risk of harm occurring.

We considered the needs, characteristics and objectives of customers with characteristics of vulnerability at all stages of the design process for this Product to ensure the Product meets their needs and the Distribution channels are fit for purpose.

We have a corporate framework in place to achieve good outcomes for vulnerable customers, which includes:

  • Education and training for our staff to ensure they have the appropriate skills and experience to recognise and respond to the needs of vulnerable customers.
  • Suitable customer service provision and communications.
  • Flexible policies, where appropriate, to support vulnerable customers.
  • Monitoring to ensure we continue to meet and respond to the needs of customers with characteristics of vulnerability.
  • Requirements for all introducers to have FCA limited permissions in place.

Introducers should continue to comply with their obligations to ensure that they treat customers in vulnerable circumstances fairly.

Please contact us if you need any further information about how we support the needs of all our customers in relation to the Product.


5. Our assessment of value

Our products and suppliers are reviewed monthly in our company management meeting to ensure they continue to deliver fair value for our customers. The review includes:

Benefits: The range of features that the Product provides, the quality of the Product, the level of customer service that is provided and any other features that the Product may offer.

Price: The interest rates, fees and charges customers pay for the Product, comparable market rates, and non- financial costs associated with operating the Product.

Costs: The cost of funding the Product and any other reductions in costs to the customer made possible by economies of scale.

Limitations: Any limitations on the scope and service we provide or the features of the Product.

Results of our assessment

Our assessment concluded that the Product continues to deliver fair value for customers in the target market.

You’ll find information sheets on other Bluestone Products on our website at www.Bluestone.app/consumer-duty

If you have any questions rising form this document please contact our compliance team on email compliance@bluestone.app or by phone on  01924 248800


For any other enquiries please contact your Dedicated Account Manager 

Consumer Duty Information Sheet Version1: 22/06/2023

Cashflow Loan

The following document our approach to meeting the Products & Services Outcome and Price & Value Outcome – Information for introducers and consumers of the Product

1. Summary of our assessment

We’ve assessed that:

  1. Our range of cashflow loan products continues to meet the needs, characteristics and objectives of customers in the identified target market.
  2. The intended distribution strategy (Direct sales and via our automated online website) remains appropriate for the target market.
  3. The Product provides fair value to customers in the target market (i.e. the total benefits are proportionate to total costs).


2. Product characteristics & benefits

The product is designed to meet the needs of the target group, where key needs are; ability to raise capital with low upfront costs and pay back in pre-agreed instalments. The product features and criteria are designed to support these needs.

Key product features & benefits

Product characteristics

Benefits

Borrow from £1,000: Immediate use 

Flexible finance structures: Flexibility allows for working capital to be retained in the business, with no large initial capital outlay

Fixed interest rate payable monthly, quarterly, biannually or annually: Payments to suit customers cashflow and business seasonality.

Ability to budget repayments over the term and ensure affordability: Terms up to 6 years

Tax benefits available for profit making businesses: Interest payments are tax-deductible throughout the term of the repayments. 

Pricing (Interest rate and associated fees): Dependent on level of Risk

Early settlement options available, in line with regulatory requirements: Opportunity to upgrade assets where required.


3. Target market assessment and distribution strategy

This target market assessment matrix segments the target customers for the Product, recognising their different needs to enable you to tailor the services you provide when you distribute the Product.

Customer Circumstances: The product is suitable for all UK companies and can be applied according to size and industry.

Distribution Strategy: Direct sales via our trained and qualified in-house sales function. Our Direct Sales team use a RAIN consultative approach to fully understand all customers situation, requirement and needs to make the most appropriate recommendation. Our online digital solutions via Bluestone.app.

Customer Needs & Objectives:

Immediate access to capital:

  • Low upfront costs
  • Fixed, regular repayments
  • Ability to settle early 

4. Customers with characteristics of vulnerability

The Product is designed for numerous borrower types including Individuals, Sole Traders and Small Partnerships. These entities are likely to include some customers with characteristics of vulnerability or who will experience vulnerability over time.

Generally speaking, retail consumers are less likely to have a comprehensive understanding of Asset Finance or the market, therefore, they may require additional advice and support to ensure they understand the information being presented to them and the implications of the arrangement they are entering into to reduce the risk of harm occurring.

We considered the needs, characteristics and objectives of customers with characteristics of vulnerability at all stages of the design process for this Product to ensure the Product meets their needs and the Distribution channels are fit for purpose.

We have a corporate framework in place to achieve good outcomes for vulnerable customers, which includes:

  • Education and training for our staff to ensure they have the appropriate skills and experience to recognise and respond to the needs of vulnerable customers.
  • Suitable customer service provision and communications.
  • Flexible policies, where appropriate, to support vulnerable customers.
  • Monitoring to ensure we continue to meet and respond to the needs of customers with characteristics of vulnerability.
  • Requirements for all introducers to have FCA limited permissions in place.

Introducers should continue to comply with their obligations to ensure that they treat customers in vulnerable circumstances fairly.

Please contact us if you need any further information about how we support the needs of all our customers in relation to the Product.


5. Our assessment of value

Our products and suppliers are reviewed monthly in our company management meeting to ensure they continue to deliver fair value for our customers. The review includes:

Benefits: The range of features that the Product provides, the quality of the Product, the level of customer service that is provided and any other features that the Product may offer.

Price: The interest rates, fees and charges customers pay for the Product, comparable market rates, and non- financial costs associated with operating the Product.

Costs: The cost of funding the Product and any other reductions in costs to the customer made possible by economies of scale.

Limitations: Any limitations on the scope and service we provide or the features of the Product.

Results of our assessment

Our assessment concluded that the Product continues to deliver fair value for customers in the target market.

You’ll find information sheets on other Bluestone Products on our website at www.Bluestone.app/consumer-duty

If you have any questions rising form this document please contact our compliance team on email compliance@bluestone.app or by phone on  01924 248800

For any other enquiries please contact your Dedicated Account Manager 

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