What about students finance in the UK?

Loans: I want to give stuff to students on finance, what sort of security can i request?

• I am going into a business which will require me to give stuff to students on finance and will require them to repay on instalment. My worry is that some students will like to game me by taking advantage never to repay me there by  making the business very difficult. Bearing the fact that most students do not have a credit cards and of course credit checking is not an option, they've only got paypal and bank accounts, likewise i am not sure i could get an insurance company to play the game with me. What is the best possible way you think i can go about it in order to ensure that i receive maximum return on my funding. This is a UK business

• Answer:

  You are basically lending them money; or something valuable like equipment instead of money. You should assume defaults will be high, and charge a high interest rate to make up your losses.  That's how the bank and credit card lenders do it. The agreement should state that YOU own the equipment until they repay the full amount.  That way you might possibly have a chance to get it back if they default.