Financing

HUDSONVALLEYEXT

How does the financing thing work? Do you get hooked up with a bank or something.? We worked all winter last year but now we are slow so im thinking of a battleplan for next season.

marc

Go online and search for Key Bank or GE financial. They are probably the 2 biggest. Also hook up with a good mortgage broker. He will get the people that Key or GE won't finance. Key and GE are both unsecured home improvement loans so not everyone will be approved. That's where the mortgage guy comes in and does a consolidation loan. We have a lot of customers that we install a $30K sunroom or $15K siding jobs and we put $100 or $200 in their pockets each and every month because we wrapped all of their CC's, Vehicles and equity line into one LOWER payment. People love this kind of stuff. All you have to say is "I'm not saying that I could do it. BUT If I could paint all of your rooms and put a little money in your pocket, is that something you would like to hear about?" What do you think they will say? I have NEVER heard no

HUDSONVALLEYEXT

thanks for the info. if the person does not get approved for the home improvement loan. How would they get the consolidation loan what would they have to use home equity they have or something?

dougchips

Hud, home improvement loans are generally not secured whereas home equity loans are secured. Secured loans are easier to get. There are some companies that write unsecured loans for people with crappy credit however their rates are very high.

HUDSONVALLEYEXT

if the customer does not get approved for a unsecured home improvement loan. how are they ever get approved for a consolidation loan is what im asking

marc

They would secure the loan with coladeral.............Home, Auto, etc.

HUDSONVALLEYEXT

with the home improvement loan who pays you the bank or the customer?

dougchips

Bank after the job. With Key Bank, you have the customer fill out a app, fax it over and get a response in a day--then you go back out and have the customer sign the key bank paperwork--then mail it in. After the job they sign a completion form and you fax it in, they call the customer to make sure the job was done and finally they 2nd day mail you your check.

You should try to get a down payment if cash flow is an issue.

It works great this time of year when people say they have to hold off until after x-mas--bullshi_ they can delay payments for 3-6 months.