A round-up of today's other business stories in brief.
New car loan interest-free for 18 months
Car buyers can now avail of an interest-only hire purchase loan from asset finance company Lombard, part of the Royal Bank of Scotland group.
Under the deal, customers can buy a new or second-hand car up to three years old and repay only the interest due for up to 18 months. They must provide a deposit, made up of cash or a trade-in valuation, equal to least 40 per cent for new cars or 50 per cent for second-hand cars.
At the end of the interest-free period, customers must either repay the capital balance in one lump sum or pay it in instalments over a period of 12-36 months. The current interest rate on the loan is 8.5 per cent APR.
Based on an 18-month interest-only period and 36 monthly repayments, the total cost of credit on an €18,000 loan (for a €30,000 car) would be €5,292.
If the customer chose to repay the balance as a lump sum after 18 months, the cost of credit would be €2,210.
Warning on in-store credit
The Consumers' Association of Ireland (CAI) has urged consumers to be wary of in-store credit, which though often easier to obtain, can be expensive compared to overdrafts or personal loans.
In the December issue of its magazine, Consumer Choice, the association warns consumers that they could end up paying much higher than average interest rates on interest-free, in-store credit deals if they do not repay the full loan within the specified interest-free period.
Dermott Jewell, CAI chief executive, said it was important that consumers were aware of their rights.
"You have the right to change your mind up to 10 days after you have signed the agreement, provided you have not signed an agreement waiving this right. However, many consumers sign away their rights to this in the rush to obtain credit as they want to take the goods home immediately," he said.
Firms neglecting risk management
Only a quarter of companies worldwide have good or advanced systems in place to manage social, environmental and other ethical risks, according to a new study by the ethical investment research company Eiris.
Eiris found that French, Norwegian, Swiss and British companies on two global FTSE indices had made the greatest progress in developing risk management systems and that larger companies were generally stronger than smaller companies.
Eiris said there was much room for improved management of social, environmental and ethical risks and that this should provide "extensive opportunities" for socially responsible investors to engage with companies and help influence their approach.
