A working group that included the FSA, the Smaller Business Practitioner Panel and trade body representatives re-negotiated a previous plan with Premium Credit Limited.
Premium Credit Limited will guarantee auto-acceptance to all FSA authorised firms up to £50,000.
The FSA will enclose a Premium Credit Limited application form with firms’ invoices but says it recognises that other suppliers provide a similar service and individual firms can select their own supplier.
The FSA says last year over 4,300 firms chose to pay by instalment.
FSA chief operating officer Mark Norris says: “I am delighted the FSA was able to help facilitate this successful market solution. The option to pay by instalments is a key part of making the FSA easier to do business with and is especially valued by smaller firms.”
Smaller Business Practitioner Panel chairman Simon Bolam adds: “The facility to pay by instalments is an important tool for many small firms. In the current economic climate we are pleased that we have been able to negotiate a deal that provides firms with a realistic interest rate for an automatic loan facility. This is a good example of trade bodies and FSA working together to bring about a positive outcome for firms.”