Do I need a licence if I don't charge any interest?

Possibly not, but it depends on the detail. Some short, interest-free instalment arrangements have been exempt, and from 15 July 2026 merchants offering only interest-free buy-now-pay-later at checkout are generally exempt from credit-broking authorisation. Other regulated credit, or selling in customers' homes, can change that — so it's worth checking your specific setup.

Do I still need it if I only introduce customers to one lender?

Usually yes. Introducing customers to a lender is credit broking whether you work with one lender or several, and whether or not you receive commission.

What if finance is only a tiny part of my business?

The activity still needs authorisation, but because it's secondary to your main trade you'll typically qualify for limited permission — the lighter, lower-cost route — rather than full permission.

Is this the same as being an appointed representative?

No. Being an appointed representative means operating under another authorised firm's umbrella instead of being directly authorised. It's one of two routes — our guide on appointed representative vs direct authorisation explains the trade-offs.

Do I Need an FCA Licence to Offer Finance?

If you let your customers pay over time using finance from a lender, the short answer is usually yes — you most likely need FCA authorisation, even if finance is only a small part of what you do. Here's how to tell, and the handful of situations where you might not.

The short answer

When your business introduces or arranges finance for customers — for example sending them to a lender to pay for your goods or services in instalments — you're carrying on a regulated activity called credit broking. Carrying on a regulated activity in the UK generally requires authorisation from the Financial Conduct Authority (FCA). That's true even if you don't lend any money yourself and even if finance is a sideline to your main trade.

When you do need a licence

You'll typically need FCA authorisation if you do any of the following as part of your business:

Let customers pay using a third-party lender's finance (instalments, hire purchase, point-of-sale finance);
Introduce or refer customers to a lender or broker, whether or not you earn commission;
Present or help complete finance applications on a customer's behalf.

This is the position for most secondary credit brokers — motor and vehicle dealers, dental and aesthetic clinics, vets, opticians, retailers and home-improvement firms — whose main business is selling their own goods or services and who introduce customers to a lender. Because this activity is lower-risk, most such firms need the lighter limited permission rather than full permission.

When you might not need one

There are some genuine exceptions:

You don't offer finance at all. If customers only ever pay you in full, you're not credit broking.
Certain interest-free agreements. Some interest-free instalment arrangements have historically been exempt where they're repayable within a small number of instalments over a short period and carry no interest or charges. The detail matters, and this area is changing.
Interest-free "buy now, pay later" at checkout. From 15 July 2026, interest-free deferred payment credit becomes regulated for lenders, but merchants who only offer it at the point of sale are generally exempt from needing credit-broking authorisation — unless they also offer other regulated credit, such as interest-bearing or longer-term finance. (The FCA's final rules kept in-home sellers within this merchant exemption too — see our BNPL regulation guide.)

If credit is your main business

If lending or broking finance is your core activity rather than a secondary one — or if you lend your own money — you're likely to need full permission, which is a more involved process. The fixed-fee service we offer is built for the common limited-permission case.

The quickest way to be sure

Rules are easy to second-guess, so we built a free tool that asks a few plain-English questions and tells you whether you likely need authorisation: try the 60-second eligibility checker. And if you're weighing up the risk of carrying on without it, read what happens if you offer finance without FCA authorisation.

This article is general information to help you understand the process, and is not legal or regulatory advice. CreditLicence is a document preparation service and is not affiliated with, endorsed by, or acting on behalf of the Financial Conduct Authority. FCA rules can change; always check the FCA's website for the current position.

Do I need an FCA licence to offer customers finance?