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Who Offers Financing To Customers?

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Old 02-25-2018, 06:29 PM   #1
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Who Offers Financing To Customers?

I'm thinking about offering financing to clients. Who here does the same?
Are there any preferred banks/lending partners to work with? Any pitfalls or problems with these lending services?
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Old 02-25-2018, 08:55 PM   #2
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Re: Who Offers Financing To Customers?

I offer to accept credit cards. If they don't have access to credit from a bank why should you stick your neck out?

Banks love to loan money and they are very good at figuring out who will pay and who don't. Don't reinvent the wheel.

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Old 03-12-2018, 09:52 PM   #3
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Re: Who Offers Financing To Customers?

I agree, don't stick your own neck out. Bank are good at what they do but some are expensive. We switched from synchrony and started using finance my project which doesn't cost us anything and has worked so far.

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Old 03-14-2018, 07:54 AM   #4
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Re: Who Offers Financing To Customers?

Originally Posted by philcav7 View Post
I'm thinking about offering financing to clients. Who here does the same?
Are there any preferred banks/lending partners to work with? Any pitfalls or problems with these lending services?
You opening yourself for magic worlds of bankruptcies.
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Old 03-17-2018, 11:34 PM   #5
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Re: Who Offers Financing To Customers?

I don't offer any financing, I think I am way too small of an operation to offer it.

I do offer credit card payment. I have the square reader that you get for free. Its like 3% per transaction. I do have surcharges to use it.

Would financing be a good thing? Sure, why not!

The greater question is. Why do they want to finance? Usually we finance because we do not have the money to pay it off in full. I usually take milestone payment but still, if they don't have X amount to pay then what happens.

I am not sure how the financing would work exactly. I would assume that bank would pay you, they pay bank. Just a loan, that they are repaying. What happens if they default though? Any penalty to you?
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Old 03-18-2018, 05:56 PM   #6
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Re: Who Offers Financing To Customers?

Provided it is 3rd party, and not in house financing, I don't see the risk. Aside from a client overextended themselves financially and having buyer's remorse. But a quality job and an informative contract should prevent that
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Old 03-08-2019, 12:05 AM   #7
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Re: Who Offers Financing To Customers?

Great question. In response to these responses, there is no risk. You're not on the hook if they don't pay. It's a tool to allow customers or potential customers to finance the project through basically a bank. You get paid asap and walk away. If they don't pay the finance company searches for them not you. It also allows you to sell upgrades. The catch is dealer fees.

Banks are great but can't and won't offer 12 months same as cash. This allows a smart buyer help manage money. The people who can write the check for the work are the most likely people to utilize such a service. If you offer it, this customer will call you, if not he'll call your competitor who does offer it.... also "think small, stay small".

Back to the question. I have decided to offer it, however I haven't decided which financier to partner with. I've just started my research which lead me here. Any insight or information you find would be grateful.

I know Greenleaf approval rate is 80%, they offer 0% for 12 months, more than often approve more than asked for (more sales) and pay 20% to the contractor asap.

However the dealer fees are extremely high and they load a credit card when they pay the customers. This means you're hit with another 3% fee for taking a cc as payment. 3% on top of as much as a 5.9% dealer fee is ignorant. Their solution is build in 3% on all jobs to even out the customers that do take financing.

I found the cost outweighing the benefit but do see a benefit, hence why I'm shopping
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Old 03-08-2019, 04:27 PM   #8
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Re: Who Offers Financing To Customers?

The Joist app is set up to offer financing, and it takes you out of the loop. I never did it, but it's an option. It is a great app for the poorly organized such as myself.


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