Don't worry they do very well out of it. I have actually used FIDO to get my new road bike, I was very interested to test it out. I couldn't negotiate down the price with cash as it was the last bike so I gave FIDO a go. The actual process to apply for the facility online was very easy although there was a bit of time wasted in the shop to complete the transaction. But good overall.
I know the retailer is charged rather a high interest rate, I won't say how much I was told but it does depend on the period of the FIDO agreement, I could only get a 6 month payment arrangement, the retailer wouldn't offer any longer period as it was just too expensive for them. It would have been great to do a 2 year deal but the interest rate the retailer pays would hurt.
I reckon this will be a big contributor to the TSM results in the coming years, we know it is very profitable for FXL, I can't see TSM not achieving the same results. I said that the price would fall after the half year results and it has, I think this is the time to buy this stock. Lets hope so, I've been in this stock too long now!
TSM Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
