Customer Asks To Have His Job 100% Financed

Tatoosi

This is my first post on this web site, after reading all your helpful comments I figured you might help me with this. I just got GC License and starting to work on my own. A new customer now told me that he will award me the job if I can provide 100 % financing for him. I do want the job, but I do not offer financing. How do I get information about financing the job for my customer. Thanks in advance!

dougchips

It takes about 2 weeks or more to get set up with a lender. Try Key Bank or Wells Fargo. American General or Benefical might be quicker but their rates are a little high.

Good luck and welcome to the site.

BTW, drive him to a credit union he will get better rates.

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ChrWright

There isn't a bank in the world that would give him 100% financing on a home improvement loan--unless the house is paid off and there's enough equity to cover it....

There are a lot of construction lenders hungry to make loans right now---but on the face of it your potential client sounds like he's asking you to shoulder some risk for him...a BAD idea...

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sully27

I guess the first thing I would want to know is that if this your 1st job with a GC license why would you want to take on a customer like this? If he knows that you just got your license he may screw with you on this and other issues. Also, is this job a referral or a cold lead? Sorry I didn't get into the finance part for you but it strikes me as a little odd that your first job wants to be a full finance

stacker

best thing my dad would always say when someone asked to make payments.
"we made a deal with the bank.....they wont lay brick,and we wont loan money!"worked everytime

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Tatoosi

Thanks for advice. But how can he screw me ? Am I going to bear any responsibility for his loan? My work has been slow lately, and I do not want to lose a customer, but the last thing I need is being screwed now.

He has a few bids, but he said he is going to consider the ones that offer financing.

dougchips

Some/most/all people that grew up using credit cards are monthly payment people---they can not deal with a lump sum. Offering it is a tool just like taking credit cards, you can go to work with your toolbelt full or leave the empty slots and miss out on a few jobs.

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greg24k

I've had this come up on many occasions. If you have money that you can spare to finance the job and still be strong money wise if something go wrong, the best way to go about this is come up with strict terms in the contract. If should something happen you can go against something to compensate for your losses. If you don't have money to lean back on and if you finance this project and something goes wrong you be out of business then don’t do it.
Find a bank or a finance company who work with contractors and who offer finance services to theirs clients. If this customer doesn’t want to deal with a finance company or a bank, I think he is looking for a sucker to stiff them.
Be careful and talk to your attorney, he will explain the risks.
Good luck buddy.

greg24k

If he stops paying you,then you will be screwed. You will have to put a lean on the house or what ever.You will have to go to court.You will have to get a lawyer and by the time you done you will never see your money.
If you a guy who is hanging out the window and looking for work and needs a headache, take the job.
If you smart, stay away from it,you just starting out, build your reputation and you will get plenty of work.

ChrWright

NO CONTRACTOR SHOULD EVER LOAN MONEY TO A CLIENT OUT OF THEIR OWN POCKET...

You can help them secure financing by establishing relationships with lenders but in the end--if they can't qualify for financing at a bank, then they can't afford to build. End of story.

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Driftwood

RUN FOR YOUR LIFE SON. Find some good people with $$$$$$$$. There out there. LOVE working for older folks.

mtp

tell him to gfac if he cant pay he shouldn't get the work done

ModernStyle

gfac?

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dougchips

go
__
a
cow?

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To get the best replacement windows, or sun rooms contact the replacement windows experts at FHI Vinyl Window Company.

Canuck Sparky

Don't do it my friend. As for things being "slow lately"...get use to it for a while...it's part of "just starting out". It may also be something you will have to deal with every now and then even after you've become established. You're staring opportunity square in the face. That is the opportunity of being a candidate for the "Desperate People Do Desperate Things" category.

On the other hand it could be the chance of a life time. If you do go for it and get burnt real bad, it will be a lesson you will never ever forget. If you survive that, it will make you a much better business man.

dirt diggler

Being that you're just starting out - I wouldn't get caught up in this.

At best, the HO is just genuinely ignorant and thinks every business is like Home Depot and can offer "No Payments Till 2009"

or

he himself cannot get financing

or

he wants to make you his girlfirend




i second, third, fourth the notion - "run"

Grumpyplumber

The guy needs a bank.
you're not a bank.
If the topic of Home Depot or other box stores comes up, I explain that they only pay a fraction of what a contractor makes on his own, so the prices are higher, despite financing.
You'll come across alot of ludicrous expectations from potential customers as time passes...you'll learn not to bite at every "opportunity".
Get used to spending time on estimates and not getting the job...par for the course and you should expect it.

Paul Rowe

If you decide to finance this job make sure that you have a contract. You never know what someone's intention is until it's too late. You have expenses to cover as far as material is concerned.....maybe you can supply the man power and have the home owner covers the material......that way they "meet you half way"

skymaster

Remember this also: when you are dealing with a financial institution you ONLY GET MONEY AT THEIR FIXED STAGES. yOU MUST COMPLETE STAGE ONE TO GET TO STAGE 2 AND You have to wait for them to get around to inspect the job so they release the next payment.

Big Bob

Start with talking to your banker. They know you and they may have a loan program for your client.

Rule # 1 Always smell the money first. So now you have time invested in your estimate ,things are slow and you really want the job.

How low were you on your bid?

Good luck